What is Prevailing Wage?
What is the Little Davis Bacon Act?
The Little Davis-Bacon Act (LDBA), found in Title 36 of state laws, outlines the minimum wage and related requirements for labor on public construction contracts exceeding $25,000 awarded by the State of Alaska or its political subdivisions. The Alaska Department of Labor and Workforce Development (DOLWD) publishes the prevailing minimum wages twice a year at: http://www.labor.state.ak.us/lss/pamp600.htm . The primary objective of the LDBA is to ensure fair and consistent labor costs for publicly funded construction projects.
When, and to Whom Must Per Diem be Paid?
As of May 1st, 2019, the minimum per diem rate is $100.00 per day, or part thereof, the worker is employed on the project. In the event that a contractor provides lodging facilities, but no meals, the department will accept a payment of $48 per day for meals to meet the per diem requirements. A non-domiciled resident means a person living more than 65 road miles from the midpoint of the project for at least 12 consecutive months prior to the award of the contract. If the distance from the midpoint of project to the main Post Office is 65 miles or greater, then the job qualifies for per diem.
a.) Anchorage – International Airport Post Office
b.) Fairbanks – Downtown Post Office
c.) Juneau – Downtown Post Office
Overtime pay is accumulated for workers who have worked more than 8 hours in a day or after 40 hours worked in a week. The rate is equal to 1.5 times the basic hourly prevailing wage paid, the fringe benefits must be paid for these additional hours worked but aren’t multiplied by 1.5. If an employee works over 8 hours in a day, those hours count towards the weekly total; however, they don’t need to be recounted as overtime hours. The focus is on the total hours worked beyond 40 in a week, counting daily hours up to 8 for each day worked.
Submitting Certified Payroll Records
Certified payrolls must be submitted by the Friday of every second week. Alaska allows contractors to bulk upload certified payroll reports through their online system. In the online system contractors can upload payroll information either through manual entry or bulk uploading it to the system. Certified payroll reports can also be submitted on paper through mail or hand delivery, this type of submission does cause a longer processing time.
Have any questions about prevailing wage laws? Let us know and one our Certified Payroll Specialist will be in touch.
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.