This post dives into the most commonly asked questions about prevailing wage laws for public construction projects in Alaska. Contact us for any specific questions.

What is Prevailing Wage?

The prevailing wage is the average wage paid to workers in similar jobs in your area. This ensures fair pay for construction workers on public projects.

What is the Little Davis Bacon Act?

Public construction projects in Alaska have specific wage requirements. Here’s what you need to know:

  • The Law: The Little Davis-Bacon Act (LDBA), found in Title 36 of Alaska Statutes.
  • Minimum Wage: Applies to construction workers on public projects exceeding $25,000 awarded by the state or its subdivisions.
  • Wage Rates: Published twice a year by the Alaska Department of Labor and Workforce Development (DOLWD): http://www.labor.state.ak.us/lss/pamp600.htm [Link to Alaska’s Prevailing Wage Rates]
  • Goal: Ensure fair and consistent labor costs for public construction projects.
When, and to Whom Must Per Diem be Paid?

Working on remote public construction projects in Alaska may qualify you for per diem payments to cover meals and lodging. Here’s a breakdown:

  • Minimum Per Diem Rate: $100.00 per day (or a portion of a day) worked on the project.
  • Lodging Provided: If the contractor provides lodging but no meals, a $48 per day meal allowance applies to meet per diem requirements.
  • Non-Domiciled Resident: This applies if you live more than 65 road miles from the project’s midpoint for at least 12 months before the contract award.

Qualifying for Per Diem:

Your job qualifies for per diem if the distance between the project’s midpoint and the nearest main Post Office is greater than 65 road miles. Here are some reference points:

  • Anchorage: International Airport Post Office (assuming this is the main one)
  • Fairbanks: Downtown Post Office (assuming this is the main one)
  • Juneau: Downtown Post Office (assuming this is the main one)

Note: These are just examples. Be sure to confirm the designated main Post Office for your specific project location with the relevant authorities.

Fringe Benefits

Prevailing wage rates can include fringe benefits like health insurance, pensions, and unemployment plans if listed in union agreements. These contributions are listed on the wage schedule. Employers do not have to provide these fringe benefits. Only actual contributions to these plans can be deducted from the total prevailing wage.

Threshold Requirement

Here’s a quick guide to prevailing wage and resident hire threshold rules for Alaska public construction projects:

  • Prevailing Wage Applies: Applies to state public works contracts exceeding $25,000.
  • Federal Funding: Alaska Resident Hire cannot be enforced on projects with federal funding if it violates those standards.
  • Wage Updates: Prevailing wage rates are adjusted twice a year (April 1st and September 1st) by the Alaska Department of Labor and Workforce Development (DOLWD).
  • Wage Effect: The prevailing wage rate in effect is the one that applies throughout the project duration.
Overtime Determinations

Here’s what to know about overtime pay for workers on Alaska public construction projects subject to prevailing wage:

  • Overtime Eligibility: Workers earn overtime pay for exceeding:
    • 8 hours in a single workday
    • 40 hours in a workweek
  • Overtime Rate: Time and a half (1.5 times) the basic hourly prevailing wage.
  • Fringe Benefits: Fringe benefits are paid for overtime hours, but not multiplied by 1.5.
  • Daily vs. Weekly: Daily hours over 8 count towards the weekly total but aren’t counted as separate overtime hours.
  • Focus: Total weekly hours matter. Overtime is calculated by adding daily hours worked up to 8 per day, then anything exceeding 40 hours in a week qualifies for overtime pay.
Submitting Certified Payroll Records

Here’s how contractors can submit certified payroll reports for Alaska public works projects:

Deadline: Every other Friday.

Online System:

  • Preferred Method: Bulk upload or manual entry of payroll information.
  • Benefits: Faster processing time.

Paper Option:

  • Allowed: Submit certified payroll reports by mail or hand delivery.
  • Drawback: Longer processing time compared to online submission.

https://certpay.dol.alaska.gov/Portal.aspx

Forms and More Information

For prevailing wage determinations click here.

For more information on submitting certified payroll records click here.

Paper based submission forms can be found here.

Online certified payroll submission can be done here.

Alaska Public Construction FAQ: click here.

Failure to comply with Alaska Prevailing Wage determinations can result in fines and penalties. 

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.