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?
Laws that go beyond the federally mandated Davis Bacon Laws, the minimum prevailing wages are published by the Alaska Department of Labor and Workforce Development (DOLWD) twice a year. In states without their own Davis Bacon laws prevailing wage rates default to ones mandated by the Department of Labor(DOL).It is important to note that wage determinations are determined based on location, Northern Alaska and South Central Alaska, for more information please see the Laborers’ & Mechanics’ Minimum Rates of Pay 2018 guide. The next scheduled change in prevailing wage rates will be April 1, 2019.
Per Diem Payments
If workers aren’t provided with room and board, they must be paid a per diem of $75. If rooms are provided without any boarding, then a pre-diem of $36 per day has to be paid.
Fringe Benefits can be paid as part of a bona fide benefits plan; however, these plans need to be accepted by the IRS.
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 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.
Submitting Certified Payroll Records
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.
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.
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.