Below are some frequently asked questions about prevailing wage laws in Alaska. Contact us for any specific questions.
What is Prevailing Wage?
The prevailing wage rate was established to ensure that contractors have a level playing field when bidding on government projects and ensuring that construction workers are paid a fair wage when working on these projects. These hourly wages and fringe benefits are based on craft and location.
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

Fringe Benefits
Fringe Benefits can be paid as part of a bona fide benefits plan; however, these plans need to be accepted by the IRS.
Threshold Requirement
State public works contractors valued in excess of $25,000 are subject to prevailing wage regulations. Projects that involve federal funding are beyond the jurisdiction to enforce the Alaska Resident Hire when doing so violates federal funding standards. Prevailing wage rates are set to increase twice a year, these modifications and increases are issued by the Alaska Department of Labor and Workforce Development. These are released on the first of April and September. The wage determinations are affective at the start of the project.
Overtime Determinations

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.

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.