Alaska Employment Preference Information (explaining the 2015 determination)

STATE OF ALASKA
DEPARTMENT OF LABOR & WORKFORCE DEVELOPMENT
ALASKA EMPLOYMENT PREFERENCE INFORMATION

By authority of A.S. 36.10.150 and 8 AAC 30.064, the Commissioner of Labor and Workforce Development has
determined the State of Alaska to be a Zone of Underemployment. A Zone of Underemployment requires that
Alaska residents who are eligible under AS 36.10.140 be given a minimum of 90 percent employment preference
on public works contracts throughout the state in certain job classifications. This 90 percent Alaska resident
hiring preference applies on a project-by-project, craft-by-craft or occupational basis and must be met
each workweek by each contractor/subcontractor in each of the following classifications:

Boilermakers Electricians Laborers Roofers
Bricklayers Engineers and Architects Mechanics Sheet Metal Workers
Carpenters Equipment Operators Millwrights Surveyors
Cement Masons Foremen & Supervisors Painters Truck Drivers
Culinary Workers Insulation Workers Piledriving Occupations Tug Boat Workers
Ironworkers Plumbers & Pipefitters Welders

This determination became effective July 1, 2015, and remains in effect through June 30, 2017. This
determination will be applied to projects with a bid submission deadline on or after July 1, 2015 and to projects
previously covered by the 2013 Alaska employment preference determination. This will afford contractors an
opportunity to consider the impacts of Alaska resident hire in their bids.

The first person on a certified payroll in any classification is called the "first worker" and is not required to be an
Alaskan resident. However, once the contractor adds any more workers in the classification, then all workers in
the classification are counted, and the 90 percent calculation is applied to compute the number of required
Alaskans to be in compliance. To compute the number of Alaskan residents required in a workweek in a
particular classification, multiply the total number of workers in the classification by 90 percent. The result is then
rounded down to the nearest whole number to determine the number of Alaskans that must be employed in that
classification.

If a worker works in more than one classification during a week, the classification in which they spent the most
time would be counted for employment preference purposes. If the time is split evenly between two
classifications, the worker is counted in both classifications.

If you have difficulty meeting the 90 percent requirement, an approved waiver must be obtained before a
non-Alaska resident is hired who would put the contractor/subcontractor out of compliance (8 AAC 30.081 (e) (f)).
The waiver process requires proof of an adequate search for qualified Alaskan workers. Qualified Alaska
residents identified through the search must be hired before waivers for non-resident workers may be granted.
To apply for a waiver, contact the nearest Wage and Hour Office for instructions.

Here is an example to apply the 90 percent requirement to four boilermaker workers. Multiply four workers by
90% and drop the fraction (.90 X 4 = 3.6 - .6 = 3). The remaining number is the number of Alaskan resident
boilermakers required to be in compliance in that particular classification for that week.

The penalties for being out of compliance are serious. AS 36.10.100 (a) states "A contractor who violates a
provision of this chapter shall have deducted from amounts due to the contractor under the contract the
prevailing wages which should have been paid to a displaced resident and these amounts shall be retained by
the contracting agency." If a contractor/subcontractor is found to be out of compliance, penalties accumulate until
they come into compliance.

Contractors are responsible for determining residency status. If you have difficulty determining whether a worker
is an Alaska resident, you should contact the nearest Wage and Hour Office. Contact Wage and Hour in
Anchorage at (907) 269-4900, in Fairbanks at (907) 451-2886, or in Juneau at (907) 465-4842.