AS Title 23, Chapter 5: Department of Labor and Workforce Development

Chapter 05. Department of Labor and Workforce Development. Article 1. Administration. Sec. 23.05.010. Purpose. The Department of Labor and Workforce Development shall foster and promote the welfare of the wage earners of the state, improve their working conditions, and advance their opportunities for profitable employment. Sec. 23.05.020. Records of department. The department shall keep a record of all proceedings. All records shall be open during regular hours of business for public inspection. Sec. 23.05.030. Funds. The department shall remit to the Department of Revenue all money it receives and sign and issue vouchers for necessary disbursements. Sec. 23.05.040. Bond of commissioner. The commissioner shall give bond approved by the Department of Administration in the sum of $10,000 running to the state, conditioned upon the faithful performance of the duties of the office. The bond shall be filed with the Department of Administration. Sec. 23.05.050. Power to issue subpoenas and take testimony. The department may issue subpoenas, administer oaths, and take testimony concerning any matter within its jurisdiction. Sec. 23.05.055. Electronic filing. Notwithstanding any contrary provision of the law, if the commissioner determines by order that it is in the public interest, the commissioner may authorize electronic filing of certain information with the department in a format prescribed by the department as an additional means of filing under this title. If the commissioner authorizes electronic filing, the department shall consider the electronic filing as equivalent to paper filing for purposes of compliance with other requirements of this title. Electronic filings authorized under this section are equivalent to paper filings for the purposes of civil or criminal penalties for violations of this title or AS 11 . Sec. 23.05.060. Powers of the department. The department may (1) enforce all state labor laws; (2) act as mediator and appoint deputy commissioners of conciliation in labor disputes whenever it considers the interest of industrial peace requires it; (3) make investigations and collect and compile statistical information concerning the conditions of labor generally and upon all matters relating to the enforcement of this chapter; (4) institute court proceedings against an employer of labor without cost to the employee when it is satisfied that the employer has failed to pay an employee an amount due by contract; (5) issue cease and desist orders and other orders and regulations necessary for the enforcement of state labor laws; (6) in accordance with AS 37.07 (the Executive Budget Act), receive and spend money derived from agreements with local governments, nongovernmental organizations, or other persons. Sec. 23.05.065. Fees for publications, research data, and other services. The commissioner may establish by regulation and the department may charge reasonable fees for department publications, research data, and other centralized administrative services to cover the cost of reproduction, printing, mailing, distribution, and other centralized administrative services. Sec. 23.05.067. Service fees for administration of workers' safety and compensation programs. (a) Each insurer providing workers' compensation insurance and each employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall pay an annual service fee to the department for the administrative expenses of the state for workers' safety programs under AS 18.60 and the workers' compensation program under AS 23.30 as follows: (1) for each employer, (A) except as provided in (b) of this section, the service fee shall be paid each year to the department at the time that the annual report is required to be filed under AS 23.30.155 (m) or (n); and (B) the service fee is 2.9 percent of all payments reported to the division of workers' compensation in the department under AS 23.30.155 (m) or (n), except second injury fund payments; and (2) for each insurer, the director of the division of insurance shall, under (e) of this section, deposit from funds received from the insurer under AS 21.09.210 a service fee of 2.5 percent of the direct premium income for workers' compensation insurance received by the insurer during the year ending on the preceding December 31, subject to all the deductions specified in AS 21.09.210 (b). (b) An employer who is required to pay an annual service fee under (a) of this section may elect to pay in yearly increments over a five-year period the portion of the service fee due under (a) of this section as a result of a settlement of over $50,000 approved under AS 23.30.012 . An election under this subsection must be made in the first year that a service fee would be due as a result of the settlement. The employer shall notify the department of an election under this subsection. If an election is made, payment of each yearly increment that is due shall be made at the time the annual report is required to be filed under AS 23.30.155 (m) or (n). (c) Payment of the annual service fee under this section shall be made in the manner and by the method specified by the department. (d) If an employer who is required to pay an annual service fee under this section does not pay the required amount of the service fee by the time specified in this section, the employer shall pay a civil penalty of $100 for the first day the payment is late and $10 a day for each additional day the payment is late. The civil penalty under this subsection is in addition to any civil penalties imposed for late filings of reports under AS 23.30.155 (m). (e) Annual service fees and civil penalties collected under this section and AS 23.30.155 (c) and (m) shall be deposited in the workers' safety and compensation administration account in the state treasury. Under AS 37.05.146 (c), the service fees and civil penalties shall be accounted for separately, and appropriations from the account are not made from the unrestricted general fund. The legislature may appropriate money from the account for expenditures by the department for necessary costs incurred by the department in the administration of the workers' safety programs contained in AS 18.60 and of the Alaska Workers' Compensation Act contained in AS 23.30 . Nothing in this subsection creates a dedicated fund or dedicates the money in the account for a specific purpose. Money deposited in the account does not lapse at the end of a fiscal year unless otherwise provided by an appropriation. (f) The department may adopt regulations to implement this section. (g) Notwithstanding AS 21.76.020 (a), a joint insurance arrangement established under AS 21.76 is subject to the provisions of this section and regulations adopted under this section and, if self-insured, is subject to the annual service fee on behalf of its members. (h) The department shall grant a credit against the service fee imposed under (a)(1) of this section to an employer if (1) the employer applies to the department for the credit on a form prescribed by the department; (2) the employer provides proof that the employer has paid a premium tax imposed under AS 21.09.210 on an insurance policy; and (3) workers' compensation claims have been paid under the insurance policy described in (2) of this subsection and the claims are subject to the service fee imposed under (a) of this section. The credit allowed under this subsection is equal to the amount of the premium tax paid by the employer under the insurance policy, may not exceed the service fee imposed under (a) of this section, and only applies to premium taxes paid by the employer on or after January 1, 2000. (i) In this section, “insurer” has the meaning given in AS 21.97.900 . Sec. 23.05.070. Accounting and disposition of receipts. [Repealed, § 28 ch 90 SLA 1991.] Sec. 23.05.080. Employer's records. An employer shall keep an accurate record of the name, address, and occupation of each person employed, of the daily and weekly hours worked by each person, and of the wages paid each pay period to each person. The record shall be kept on file for at least three years. Sec. 23.05.090. Employer shall furnish information. An employer shall furnish to the department the information it is authorized to require, and shall make true and specific answers to all questions, whether submitted orally or in writing, authorized to be asked of the employer. Sec. 23.05.100. Inspections and examination of records. The department may (1) enter a place of employment during regular hours of employment and in cooperation with the employer, or someone designated by the employer, collect facts and statistics relating to the employment of workers; (2) make inspections for the proper enforcement of all state labor laws; (3) for the purpose of examination, have access to and copy from any book, account, record, payroll, paper, or document relating to the employment of workers. Sec. 23.05.110. Biennial report. The department shall submit a report to the governor concerning its activities during the preceding two years. The department shall notify the legislature that the report is available. Sec. 23.05.120. Cooperation with other agencies. The department may negotiate with the United States Department of Labor and with other federal and state agencies the arrangements that it considers expedient for cooperation in formulating and carrying out policies and projects designed to encourage and assist in the protection and welfare of labor of the state. Sec. 23.05.125. Office of citizenship assistance. (a) The office of citizenship assistance is established in the office of the commissioner. The office shall (1) provide employment information and referrals to services for legal aliens, including employment services, such as job placement services, and information about how labor unions, administrative agencies, and court actions may be used to deal with claims or charges of job discrimination, illegal termination of employment, sexual harassment, and unsafe working conditions; and (2) advise the commissioner on (A) improving employment opportunities for legal aliens; (B) preventing employment discrimination against legal aliens; and (C) cooperating with state and federal agencies to accomplish the office's mission. (b) In this section, “legal alien” means an individual who resides in Alaska, is not a citizen of the United States, and is in compliance with the individual's federal visa requirements. Sec. 23.05.130. Preference for resident workers. The department shall aid and assist resident workers to obtain, safeguard, and protect their rightful preference to be employed in industries in the state. Article 2. Wage Claims. Sec. 23.05.140. Pay periods; penalty. (a) An employee and employer may agree in an annual initial contract of employment to monthly pay periods when the employer shall pay the employee for all labor performed or services rendered. Otherwise, the employer shall establish monthly or semi-monthly pay periods, at the election of the employee. (b) If the employment is terminated, all wages, salaries, or other compensation for labor or services become due immediately and shall be paid within the time required by this subsection at the place where the employee is usually paid or at a location agreed upon by the employer and employee. If the employment is terminated by the employer, regardless of the cause for the termination, payment is due within three working days after the termination. If the employment is terminated by the employee, payment is due at the next regular pay day that is at least three days after the employer received notice of the employee's termination of services. (c) [Repealed, § 2 ch 19 SLA 1971.] (d) If an employer violates (b) of this section by failing to pay within the time required by that subsection, the employer may be required to pay the employee a penalty in the amount of the employee's regular wage, salary, or other compensation from the time of demand to the time of payment, or for 90 working days, whichever is the lesser amount. (e) In an action brought by the department under this section, an employer found liable for failing to pay wages within the time required by (b) of this section shall be required to pay the penalty set out in (d) of this section. The amount of the penalty shall be calculated based on the employee's straight time rate of pay for an eight-hour day. (f) In an action brought for unpaid overtime under AS 23.10.060 that results in an award of liquidated damages under AS 23.10.110 , the provisions of (d) of this section do not apply unless the action was brought by the department under (e) of this section. Sec. 23.05.150. Pay orders. [Repealed, § 2 ch 19 SLA 1971.] Sec. 23.05.160. Notice of wage payments. An employer shall notify an employee in writing at the time of hiring of the day and place of payment, and the rate of pay, and of any change with respect to these items on the payday before the time of change. An employer may give this notice by posting a statement of the facts, and keeping it posted conspicuously at or near the place of work where the statement can be seen by each employee as the employee comes or goes to the place of work. Sec. 23.05.170. Wages earned before strike, lockout, or layoff. An employee who goes on strike, or is temporarily laid off or subjected to an employer lockout during a pay period shall receive the portion of compensation earned on or before the next regular payday established as required in this chapter. Sec. 23.05.180. Wages in dispute. (a) If the amount of wages is in dispute, the employer shall give written notice to the employee of the wages, or part of the wages, that the employer concedes to be due, and shall pay that amount, without condition, within the time set by this chapter. The employee retains all remedies that the employee might otherwise be entitled to, including those provided under this chapter or AS 23.10 , to any balance claimed. (b) The acceptance by an employee of a payment under this section does not constitute a release of the balance of the claim, and a release required by an employer as a condition of payment is void. Sec. 23.05.190. Enforcement. The department shall (1) enforce this chapter; (2) investigate possible violations of this chapter; (3) institute actions for penalties provided in this chapter. Sec. 23.05.200. Hearings on wage claims. (a) The department may hold hearings to investigate a claim for wages. It may cooperate with an employee in the enforcement of a claim against the employer when it considers the claim just and valid. (b) The authorized representative of the department, in conducting a hearing under this chapter, may administer oaths and examine witnesses under oath, issue subpoenas to compel the attendance of witnesses and the production of papers, books, accounts, records, payrolls, and evidentiary documents, and may take depositions and affidavits in a proceeding before the department at the place most convenient to both employer and employee. (c) If a person fails to comply with a subpoena or a witness refuses to testify to a matter regarding which the witness may be lawfully interrogated, the judge of a competent court may, on application by the department, compel obedience by proceedings for contempt as in the case of disobedience of the requirements of a subpoena issued from the court or a refusal to testify before it. Sec. 23.05.210. Proceedings by attorney general. The attorney general may prosecute a civil case arising under this chapter that is referred to the attorney general by the department for that purpose. Sec. 23.05.220. Assignment of liens and claims to department. (a) The department may take an assignment of (1) a wage claim and an incidental expense account and an advance; (2) a mechanics or other lien of an employee; (3) a claim based on a “stop order” for wages or on a bond for labor; for damages for misrepresentation of a condition of employment; against an employment agency or its bondsman; for unreturned bond money of an employee; for a penalty for nonpayment of wages; for the return of a worker's tools in the illegal possession of another person; and for vacation pay or severance pay. (b) The department is not bound by any rule requiring the consent of the spouse of a married claimant, the filing of a lien for record before it is assigned, or prohibiting the assignment of a claim for penalty before the claim has been incurred or by any other technical rule with reference to the validity of an assignment. (c) The department may not accept an assignment of a claim in excess of the amount set out in AS 22.15.040 as the maximum amount, exclusive of costs, interest, and attorney fees, for the jurisdiction of the district court to hear an action for the payment of wages as a small claim. Sec. 23.05.230. Prosecution of claims. (a) The department may prosecute an action for the collection of a claim of a person whom it considers entitled to its services, and whom it considers to have a claim that is valid and enforceable. (b) The department may prosecute an action for the return of a worker's tools that are in the illegal possession of another person. (c) The department may join several claimants in one lien to the extent allowed by the lien laws and, in case of suit, join them in one cause of action. A bond is not required from the department in connection with an action brought as assignee under this section and AS 23.05.220 . Sec. 23.05.240. Officers to execute process without security; immunity from damages; custody of property. (a) An officer, requested by the department to serve a summons, writ, complaint, order, garnishment paper, or other process within the officer's jurisdiction, shall do it without requiring the department to furnish security or bond. (b) When the department requests an officer to seize or levy on property in an attachment proceeding to satisfy a wage claim judgment, the officer shall do so without requiring the department to furnish security or bond. (c) The officer, in carrying out the provisions of this section, is not responsible in damages for a wrongful seizure made in good faith. (d) If anyone other than the defendant claims the right of possession or ownership to the seized property, the officer may permit the third party claimant to have the custody of property, pending determination of the court as to who has the better right to possession or ownership. Sec. 23.05.250. Witness fees of garnishee defendants. A garnishee defendant, when required to appear in court in an action brought under AS 23.05.230 , shall do so without having witness fees paid in advance. But the witness fees are included as part of the taxable costs of the action and are paid to the garnishee defendant after judgment. Sec. 23.05.260. Disposition of funds recovered. (a) Out of a recovery in an action under AS 23.05.220 there shall be paid first, court costs advanced by the department which shall be returned to the department's appropriation for this purpose and second, the wage claim involved. (b) When an action is lost by the department, it shall pay costs out of money appropriated for that purpose. Article 3. Violations and Penalties. Sec. 23.05.270. Violations by employer. It is a violation of this chapter for an employer to (1) hinder or unnecessarily delay the department in the enforcement of this chapter; (2) refuse to admit an authorized representative of the department to a place of employment; (3) falsify or fail to keep a record required under provisions of this chapter, or refuse to make the records accessible or to furnish a sworn statement of the records; or (4) refuse to give information required for the enforcement of this chapter, upon demand, to the department. Sec. 23.05.280. Penalties. A person who violates a provision of this chapter or a regulation adopted or order made under this chapter upon conviction is punishable for each offense by a fine of not more than $1,000, or by imprisonment for not more than one year, or by both. Each day's continuance of a violation is a separate offense. Article 4. Reciprocal Agreements. Sec. 23.05.320. Reciprocal agreements with other states. The commissioner may enter into reciprocal agreements with the labor department or corresponding agency of another state, or with the person, board, officer, or commission authorized to act on behalf of that department or agency, for the collection in the other state of claims or judgments for wages based upon claims previously assigned to the commissioner. Sec. 23.05.330. Actions in courts of other states. The commissioner may, to the extent permitted by a reciprocal agreement with an agency of another state, maintain actions in the courts of that state for the collection of claims or judgments for wages, and may assign claims or judgments to the labor department or agency of that state for collection. Sec. 23.05.340. Actions in this state for demands arising in other states. The commissioner may, upon the written request of the labor department or corresponding agency of another state or of a person, board, officer, or commission authorized to act on behalf of that department or agency, maintain actions in the courts of this state upon assigned claims or judgments for wages arising in another state in the same manner and to the same extent that such actions by the commissioner are authorized for claims arising in this state; provided that these actions may be maintained only in the event that the department or agency in the other state provides, by agreement, reciprocal services to the commissioner. Article 5. Labor Relations Agency. Sec. 23.05.360. Alaska labor relations agency. (a) There is established within the Department of Labor and Workforce Development the Alaska labor relations agency. The agency is comprised of six members appointed by the governor and confirmed by the legislature. The term of office of a member is three years. Members serve staggered terms in accordance with AS 39.05.055 . A vacancy in an unexpired term shall be filled by appointment by the governor for the remainder of the term. The agency must include two members with a background in management, two members with a background in labor, and two members from the general public. All members must have relevant experience in labor relations matters. (b) Not more than three members of the agency may be members of the same political party. (c) Members of the agency may be removed by the governor only for cause. (d) Members of the agency receive no compensation for their services, but are entitled to per diem and travel expenses authorized for boards and commissions. (e) The governor shall designate a chair from the public members. The chair holds office at the pleasure of the governor. (f) For purposes of holding hearings, the members of the board sit in panels of three members. The chair designates the panel that will consider a matter. Each panel must include a representative of management, a representative of labor, and a representative from the general public. A member of one panel may serve on the other panel when the chair considers it necessary for the prompt administration of AS 23.40.070 — 23.40.260 (Public Employment Relations Act) or AS 42.40 (Alaska Railroad Corporation Act). Sec. 23.05.370. Powers, duties, and functions of Alaska labor relations agency. (a) The agency shall (1) establish its own rules of procedure; (2) exercise general supervision and direct the activities of staff assigned to it by the department; (3) prepare and submit to the governor an annual report on labor relations problems it has encountered during the previous year, including recommendations for legislative action; the agency shall notify the legislature that the report is available; (4) serve as the labor relations agency under AS 23.40.070 — 23.40.260 (Public Employment Relations Act) and carry out the functions specified in that Act; and (5) serve as the railroad labor relations agency for the Alaska Railroad under AS 42.40 (Alaska Railroad Corporation Act) and carry out the functions specified in that Act. (b) Two members of a panel constitute a quorum for hearing cases. Action taken by a quorum of a panel in a case is considered the action of the full board. Four members constitute a quorum for the transaction of business other than hearing cases. Sec. 23.05.380. Regulations. The agency shall adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out labor relations functions under AS 23.05.360 — 23.05.390, AS 23.40.070 — 23.40.260, and AS 42.40.730 — 42.40.890. Sec. 23.05.390. Definition. In AS 23.05.360 — 23.05.390, “agency” means the Alaska labor relations agency established in AS 23.05.360 .