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.

History. (§ 43-1-1 ACLA 1949)

Revisor’s notes. —

In 1999, in this section, “Department of Labor” was changed to “Department of Labor and Workforce Development” in accordance with § 90, ch. 58, SLA 1999.

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.

History. (§ 43-1-3 ACLA 1949)

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.

History. (§ 43-1-3 ACLA 1949)

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.

History. (§ 43-1-3 ACLA 1949)

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.

History. (§ 43-1-4 ACLA 1949)

Administrative Code. —

For occupational safety and health review board, see 8 AAC 61, art. 3.

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.

History. (§ 1 ch 50 SLA 2013)

Effective dates. —

Section 14, ch. 50, SLA 2013 makes this section effective July 1, 2013.

Legislative history reports. —

For governor’s transmittal letter for ch. 50, SLA 2013 (HB 76), see 2013 House Journal 70 — 71.

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.

History. (§ 43-1-5 ACLA 1949; am § 1 ch 34 SLA 1949; am § 2 ch 15 SLA 1972; am § 1 ch 107 SLA 1975; am § 43 ch 138 SLA 1986; am § 30 ch 41 SLA 2009)

Administrative Code. —

For employment of minors 14 and 15 years of age, see 8 AAC 5, art. 1.

For minimum wages and overtime, see 8 AAC 15, art. 2.

For exemptions, see 8 AAC 15, art. 3.

For reduction of wages, see 8 AAC 15, art. 4.

For transportation of employees, see 8 AAC 20.

For payment of wages, see 8 AAC 25.

For wages and hours, see 8 AAC 30, art. 1.

For investigations and hearings, see 8 AAC 30, art. 4.

For debarment, see 8 AAC 30, art. 5.

For holder in possession and application for certificate of fitness, see 8 AAC 90, art. 1.

For plumber certificate of fitness, see 8 AAC 90, art. 2.

For electrician certificate of fitness, see 8 AAC 90, art. 3.

For renewal and cancellation of electrical and plumbing certificate of fitness, see 8 AAC 90, art. 4.

For continuing education, see 8 AAC 90, art. 5.

For right of inspection, see 8 AAC 90, art. 7.

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, in (3), added “and” following “make investigations”, and made a stylistic change.

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.

History. (§ 15 ch 58 SLA 1999)

Sec. 23.05.067. Service fees for administration of workers’ safety and compensation programs.

1. 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,
      1. 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
      2. 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) .
2. 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).
3. Payment of the annual service fee under this section shall be made in the manner and by the method specified by the department.
4. 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) .
5. 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.
6. The department may adopt regulations to implement this section.
7. 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.
8. 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.
9. In this section, “insurer” has the meaning given in  AS 21.97.900 .

History. (§ 2 ch 89 SLA 2000; am § 31 ch 41 SLA 2009; am §§ 1, 2 ch 91 SLA 2018)

Revisor’s notes. —

In 2002, in subsection (e), “ AS 37.05.146(c) ” was substituted for “ AS 37.05.146(b) ” to reflect the 2002 renumbering of AS 37.05.146 . In 2010, in subsection (i), “ AS 21.97.900 ” was substituted for “ AS 21.90.900 ” to reflect the 2010 renumbering of AS 21.90.900 .

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, in (a)(1)(B), substituted “division of workers’ compensation in the department” for “Alaska Worker’s Compensation Board”.

The 2018 amendment, effective November 22, 2018, in (a)(2), substituted “2.5 percent” for “1.82 percent” following “a service fee of”; in (e), inserted “and AS 23.30.155(c) and (m)” following “under this section” in the first sentence.

Legislative history reports. —

For governor's transmittal letter for ch. 91, SLA 2018 (HB 79), the basis for the 2018 amendments to this section, see 2017 House Journal 97 — 101.

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.

History. (§ 43-1-6 ACLA 1949; am § 2 ch 107 SLA 1975)

Administrative Code. —

For compensation, medical benefits, and proceedings before the Alaska Workers’ Compensation Board, see 8 AAC 45.

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.

History. (§ 43-1-7 ACLA 1949)

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.

History. (§ 43-1-8 ACLA 1949)

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.

History. (§ 43-1-9 ACLA 1949; am § 44 ch 21 SLA 1995)

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.

History. (§ 43-1-10 ACLA 1949)

Sec. 23.05.125. Office of citizenship assistance.

1. 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
      1. improving employment opportunities for legal aliens;
      2. preventing employment discrimination against legal aliens; and
      3. cooperating with state and federal agencies to accomplish the office’s mission.
2. 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.

History. (§ 1 ch 167 SLA 2004)

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.

History. (§ 43-1-11 ACLA 1949)

Sec. 23.05.140. Pay periods; penalty.

1. 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.
2. 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.
3. [Repealed, § 2 ch 19 SLA 1971.]
4. 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.
5. 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.
6. 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.

History. (§ 43-2-11 ACLA 1949; am § 2 ch 34 SLA 1949; am § 1 ch 118 SLA 1959; am §§ 1, 2 ch 19 SLA 1971; am §§ 1, 2 ch 11 SLA 1976; am § 1 ch 47 SLA 1983; am §§ 3 — 5 ch 48 SLA 2000; am § 17 ch 3 SLA 2017)

Effect of amendments. —

The 2017 amendment, effective July 1, 2017, in (a), in the first sentence, substituted “shall pay the employee” for “shall pay all employees” following “when the employer”.

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.

History. (§ 43-2-11(a) ACLA 1949; am § 2 ch 34 SLA 1949)

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.

History. (§ 43-2-11(b) ACLA 1949; am § 2 ch 34 SLA 1949)

Sec. 23.05.180. Wages in dispute.

1. 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.
2. 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.

History. (§ 43-2-11(c) ACLA 1949; am § 2 ch 34 SLA 1949; am § 2 ch 47 SLA 1983)

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.

History. (§ 43-2-11 ACLA 1949; am § 2 ch 34 SLA 1949)

Sec. 23.05.200. Hearings on wage claims.

1. 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.
2. 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.
3. 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.

History. (§ 43-2-11(d)(1)-(3) ACLA 1949; am § 2 ch 34 SLA 1949)

Revisor’s notes. —

In subsection (b), in 2008, “and” was inserted before “evidentiary documents”, and, in 2016, a comma following “attendance of witnesses” was deleted, to correct a manifest error in ch 34, SLA 1949.

Administrative Code. —

For payment of wages, see 8 AAC 25.

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.

History. (§ 43-2-11(d)(4) ACLA 1949; am § 2 ch 34 SLA 1949)

Sec. 23.05.220. Assignment of liens and claims to department.

1. 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.
2. 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.
3. 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.

History. (§ 43-2-11(e)(1) ACLA 1949; am § 2 ch 34 SLA 1949; am § 1 ch 172 SLA 1959; am § 1 ch 36 SLA 1965; am § 3 ch 11 SLA 1976; am § 1 ch 24 SLA 1998; am § 6 ch 48 SLA 2000)

Sec. 23.05.230. Prosecution of claims.

1. 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.
2. The department may prosecute an action for the return of a worker’s tools that are in the illegal possession of another person.
3. 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 .

History. (§ 43-2-11(e)(1), (2) ACLA 1949; am § 2 ch 34 SLA 1949; am § 1 ch 172 SLA 1959)

Sec. 23.05.240. Officers to execute process without security; immunity from damages; custody of property.

1. 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.
2. 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.
3. The officer, in carrying out the provisions of this section, is not responsible in damages for a wrongful seizure made in good faith.
4. 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.

History. (§ 43-2-11(e)(3), (4) ACLA 1949; am § 2 ch 34 SLA 1949; am § 1 ch 172 SLA 1959)

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.

History. (§ 43-2-11(e)(5) ACLA 1949; am § 2 ch 34 SLA 1949; am § 1 ch 172 SLA 1959)

Sec. 23.05.260. Disposition of funds recovered.

1. 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.
2. When an action is lost by the department, it shall pay costs out of money appropriated for that purpose.

History. (§ 43-2-11(e)(5), (6) ACLA 1949; am § 1 ch 172 SLA 1959)

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.

History. (§ 43-1-8 ACLA 1949)

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.

History. (§ 43-1-12 ACLA 1949; § 6 ch 148 SLA 1957)

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.

History. (§ 1 ch 114 SLA 1966)

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.

History. (§ 1 ch 114 SLA 1966)

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.

History. (§ 1 ch 114 SLA 1966)

Sec. 23.05.360. Alaska labor relations agency.

1. 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.
2. Not more than three members of the agency may be members of the same political party.
3. Members of the agency may be removed by the governor only for cause.
4. Members of the agency receive no compensation for their services, but are entitled to per diem and travel expenses authorized for boards and commissions.
5. The governor shall designate a chair from the public members. The chair holds office at the pleasure of the governor.
6. 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).

History. (E.O. No. 77 § 2 (1990); am §§ 1 — 3 ch 43 SLA 1993)

Revisor’s notes. —

In 1999, in (a) of this section, “Department of Labor” was changed to “Department of Labor and Workforce Development” in accordance with § 90, ch. 58, SLA 1999.

Cross references. —

For travel and per diem for members of boards and commissions, see AS 39.20.180 .

Administrative Code. —

For procedure for hearings, see 8 AAC 97, art. 5.

Sec. 23.05.370. Powers, duties, and functions of Alaska labor relations agency.

1. 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.
2. 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.

History. (E.O. No. 77 § 2 (1990); am §§ 4, 5 ch 43 SLA 1993; am § 45 ch 21 SLA 1995)

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 .

History. (E.O. No. 77 § 2 (1990))

Administrative Code. —

For certification, see 8 AAC 97, art. 1.

For unfair labor practices, see 8 AAC 97, art. 2.

For impasse, see 8 AAC 97, art. 3.

For right of nonassociation, see 8 AAC 97, art. 4.

For procedure for hearings, see 8 AAC 97, art. 5.

For collective bargaining agreement, see 8 AAC 97, art. 6.

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 .

History. (E.O. No. 77 § 2 (1990))

Secs. 23.10.005 — 23.10.010. Coercion to use hotel or store prohibited; penalty. [Repealed, § 21 ch 166 SLA 1978. For current law on the crime of coercion see AS 11.41.530.]

Sec. 23.10.015. False representations to procure employees prohibited.

A person doing business in this state may not personally or through an agent induce an individual to change from one place to another in this state, or bring an individual into this state to work as an employee in this state, by means of false or deceptive representations, false advertising, or false pretenses concerning the kind and character of the work to be done, or the amount and character of the compensation to be paid for the work, or the sanitary or other conditions of employment.

History. (§ 43-2-43 ACLA 1949; am § 1 ch 59 SLA 1971)

Collateral references. —

51 C.J.S., Labor Relations, §§ 6-15.

Sec. 23.10.020. Penalty for violation of AS 23.10.015.

A person who, personally or as agent or servant for another, violates AS 23.10.015 is punishable by a fine of not more than $2,000, or by imprisonment for not more than one year, or by both.

History. (§ 43-2-44 ALCA1949)

Sec. 23.10.025. Use of armed guards. [Repealed, § 3 ch 59 SLA 1976.]

Sec. 23.10.030. Worker’s right of action.

A worker induced to accept employment with a person mentioned in AS 23.10.015 by conduct violating that section has a right of action for damages caused by the false or deceptive representations used to induce the worker to change the worker’s place of employment, against the person directly or indirectly causing the damages. In addition to the actual damages the worker has sustained, the worker may recover the reasonable attorney fees which the court shall fix, to be taxed as costs.

History. (§ 43-2-46 ACLA 1949)

Sec. 23.10.035. Limit of application.

AS 23.10.015 — 23.10.030 may not be construed to interfere with the right of a person to guard or protect the person’s private property, or private interest as provided by law. AS 23.10.015 — 23.10.030 may be construed only to apply when a worker is brought into the state or induced to go from one place to another in the state by a false pretense, false advertising, or deceptive representation, or is brought into the state under arms, or is moved from one place to another in the state under arms.

History. (§ 43-2-45 ACLA 1949)

Sec. 23.10.037. Lie-detector tests.

1. A person either personally or through an agent or representative may not request or suggest to an employee of the person or to an applicant for employment by the person or require as a condition of employment that the employee or applicant submit to an examination in which a polygraph or other lie-detecting device is used.
2. The provisions of (a) of this section do not apply to the state or a political subdivision of the state when dealing with police officers in its employ or with persons applying to be employed as police officers. In this subsection, “police officers” includes officers and employees of the Department of Transportation and Public Facilities who are stationed at an international airport and have been designated to have the general police powers authorized under AS 02.15.230(a) .
3. In this section “person” includes the state and a political subdivision of the state.
4. A person who violates this section is guilty of a misdemeanor, and upon conviction is punishable by a fine of not more than $1,000, or by imprisonment for not more than one year, or by both.

History. (§ 1 ch 36 SLA 1964; am § 2 ch 71 SLA 1989)

Sec. 23.10.040. Payment of wages in state.

1. Except as otherwise provided by AS 37.25.050 , an employer of labor performing services in this state shall pay the wages or other compensation for the services with lawful money of the United States or with negotiable checks, drafts, or orders payable upon presentation without discount by a bank or depository inside the state.
2. [Repealed, § 2 ch 28 SLA 1971.]
3. [Repealed, § 2 ch 28 SLA 1971.]
4. A person who violates a provision of this section is guilty of a misdemeanor.

History. (§ 43-2-12 ACLA 1949; am § 1 ch 35 SLA 1967; am §§ 1, 2 ch 28 SLA 1971; am § 10 ch 175 SLA 2004)

Cross references. —

For fines and sentences for misdemeanors, see AS 12.55.035 and 12.55.135 .

Collateral references. —

53 Am. Jur. 2d, Master and Servant, § 82.

51B C.J.S., Labor Relations, § 1179.

Sec. 23.10.043. Deposit of wages.

An employer may not deposit wages due or to become due or an advance on wages to be earned in an account in a bank, savings and loan association, or credit union unless the employee has voluntarily authorized the deposit. All deposits under this section shall be in a bank, savings and loan association, or credit union of the employee’s choice.

History. (§ 1 ch 120 SLA 1976)

Revisor’s notes. —

Enacted as AS 23.10.040(e). Renumbered in 1976.

Sec. 23.10.045. Payments into benefit fund.

1. If an employer agrees with an employee to make payments to a fund for the benefit of the employees, including a fund for medical, health, hospital, welfare, and pension benefits or any of them, or has entered into a collective bargaining agreement providing for these payments, the employer may not without just cause fail to make the payments required by the terms of the agreement.
2. Each violation of this section is a separate offense and a person found guilty of a violation is punishable in accordance with the schedule of punishment set out in AS 23.10.415 .

History. (§ 43-2-13 ACLA 1949; added by § 1 ch 23 SLA 1957; am § 1 ch 111 SLA 1959; am § 10 ch 2 SLA 1964; am § 18 ch 3 SLA 2017)

Effect of amendments. —

The 2017 amendment, effective July 1, 2017, in (a), deleted “but not limited to” following “benefit of the employees, including”.

Sec. 23.10.047. Employee’s lien.

1. If an employer agrees with an employee or group of employees to make payment to a medical, health, hospital, welfare, or pension fund or such other fund for the benefit of the employees, or has entered into a collective bargaining agreement providing for the payments, but fails to make the payments when due, a lien is created in favor of each affected employee on the earnings of the employer and on all property of the employer used in the operation of the employer’s business to the extent of the money, plus penalties due to be paid on the employee’s behalf to qualify the employee for participation in the fund and for expenses incurred by the employee for which the employee would have been entitled to reimbursement under the fund if the required payments had been made.
2. The lien claimant, a representative of the claimant, or the trustee of the fund on behalf of the claimant must record a notice of claim within 60 days after the employer’s payment is due with the recorder of the recording district in which the employer’s place of business is located or in which the claimant resides.  The notice contains
   1. the name of employee;
   2. the name of the employer and the name of the person employing the claimant if known;
   3. a statement of the pertinent terms and conditions of the employee benefit plan;
   4. the date when the payments are due and were to have been paid; and
   5. a statement of the demand including the amounts due to the claimant if expenses have been incurred.
3. The notice of claim of lien is served on the employer in the same manner as a summons and complaint in civil actions or mailed to the employer by registered mail.
4. The lien created by the recording of the notice of claim of lien is enforced within the same time and in the same manner as a mechanic’s lien is foreclosed if the lien is on real property, or as a chattel lien is enforced if the lien is on personal property.  The court may allow, as part of the costs of the action, the recording fees for the notice of claim, reasonable attorney’s fees, and court costs.
5. The lien created under (a) of this section is preferred and superior to an encumbrance that attaches after the employer’s payments became due, and is also preferred and superior to an encumbrance that has attached previously, but that was not recorded and of which the lien claimant had no notice.

History. (§ 43-2-14 ACLA 1949; added by § 1 ch 145 SLA 1962)

Revisor’s notes. —

Minor word changes related to the recording of documents were made in subsections (b), (d), and (e) of this section in 1988 under § 42, ch. 161, SLA 1988.

Sec. 23.10.050. Public policy.

It is the public policy of the state to

1. establish minimum wage and overtime compensation standards for workers at levels consistent with their health, efficiency, and general well-being, and
2. safeguard existing minimum wage and overtime compensation standards that are adequate to maintain the health, efficiency, and general well-being of workers against the unfair competition of wage and hour standards that do not provide adequate standards of living.

History. (§ 1 ch 171 SLA 1959)

Sec. 23.10.055. Exemptions; compensation of executives, administrators, and professionals.

1. The provisions of AS 23.10.050 — 23.10.150 do not apply to
   1. an individual employed in agriculture, which includes farming in all its branches and, among other things, includes the cultivation and tillage of the soil, dairying, the production, cultivation, growing, and harvesting of any agricultural or horticultural commodities, the raising of livestock, bees, fur-bearing animals, or poultry, and any practices, including forestry and lumbering operations, performed by a farmer or on a farm as an incident to or in conjunction with the farming operations, including preparation for market, or delivery to storage or to market or to carriers for transportation to market;
   2. an individual employed in the catching, trapping, cultivating, farming, netting, or taking of any kind of fish, shellfish, or other aquatic forms of animal and vegetable life;
   3. an individual employed in the handpicking of shrimp;
   4. an individual employed in domestic service, including a babysitter, in or about a private home;
   5. an individual employed by the United States or by the state or a political subdivision of the state, except as provided in AS 23.10.065(b) , including prisoners not on furlough detained or confined in prison facilities;
   6. an individual engaged in the nonprofit activities of a nonprofit religious, charitable, cemetery, or educational organization or other nonprofit organization where the employer-employee relationship does not, in fact, exist, and where services rendered to the organization are on a voluntary basis and are related only to the organization’s nonprofit activities; in this paragraph, “nonprofit activities” means activities for which the nonprofit organization does not incur a liability for unrelated business income tax under 26 U.S.C. 513, as amended;
   7. an employee engaged in the delivery of newspapers to the consumer;
   8. an individual employed solely as a watchman or caretaker of a plant or property that is not in productive use for a period of four months or more;
   9. an individual employed
      1. in a bona fide executive, administrative, or professional capacity;
      2. in the capacity of an outside salesman or a salesman who is employed on a straight commission basis; or
      3. as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker;
   10. an individual employed in the search for placer or hard rock minerals;
   11. an individual under 18 years of age employed on a part-time basis not more than 30 hours in a week;
   12. employment by a nonprofit educational or child care facility to serve as a parent of children while the children are in residence at the facility if the employment requires residence at the facility and is compensated on a cash basis exclusive of room and board at an annual rate of not less than
       1. $10,000 for an unmarried person; or
       2. $15,000 for a married couple;
   13. an individual who drives a taxicab, who is compensated for taxicab services exclusively by customers of the service, and whose written contractual arrangements with owners of taxicab vehicles, taxicab permits, or radio dispatch services are based on flat contractual rates and not based on a percentage share of the individual’s receipts from customers, and whose written contract with owners of taxicab vehicles, taxicab permits, or radio dispatch services specifically provides that the contract places no restrictions on hours worked by the individual or on areas in which the individual may work except to comply with local ordinances;
   14. a person who holds a license under AS 08.54 and who is employed by a registered guide-outfitter or master guide-outfitter licensed under AS 08.54, for the first 60 workdays in which the person is employed by the registered guide-outfitter or master guide-outfitter during a calendar year;
   15. an individual engaged in activities for a nonprofit religious, charitable, civic, cemetery, recreational, or educational organization where the employer-employee relationship does not, in fact, exist, and where services are rendered to the organization under a work activity requirement of AS 47.27 (Alaska temporary assistance program);
   16. an individual who
       1. provides emergency medical services only on a voluntary basis;
       2. serves with a full-time fire department only on a voluntary basis; or
       3. provides ski patrol services on a voluntary basis;
   17. a student participating in a University of Alaska practicum described under AS 14.40.065 ;
   18. an individual who is employed by a motor vehicle dealer and whose primary duty is to
       1. receive, analyze, or reference requests for service, repair, or analysis of motor vehicles;
       2. arrange financing for the sale of motor vehicles and related products and services that are added or included as part of the sale; or
       3. solicit, sell, lease, or exchange motor vehicles.
2. Notwithstanding (c) of this section, an individual employed in a bona fide executive, administrative, or professional capacity shall be compensated on a salary or fee basis at a rate of not less than two times the state minimum wage for the first 40 hours of employment each week, exclusive of board or lodging that is furnished by the individual’s employer.
3. In (a)(9) of this section,
   1. “bona fide executive, administrative, or professional capacity” has the meaning and shall be interpreted in accordance with 29 U.S.C. 201 — 219 (Fair Labor Standards Act of 1938), as amended, or the regulations adopted under those sections;
   2. “computer systems analyst, computer programmer, software engineer, or other similarly skilled worker” has the meaning and shall be interpreted in accordance with 29 U.S.C. 201 — 219 (Fair Labor Standards Act of 1938), as amended, or the regulations adopted under those sections;
   3. “outside salesman” means an employee
      1. who is customarily and regularly away from the employer’s place of business; and
      2. whose primary duty is making sales or contracts for sales, consignments, or shipments, or obtaining orders for services or for use of facilities for which consideration will be paid by the client or customer;
   4. “salesman who is employed on a straight commission basis” means an employee
      1. who is customarily and regularly employed on the business premises of the employer;
      2. who is compensated on a straight commission basis for the purpose of making sales or contracts for sales, consignments, shipments, or obtaining orders for services or the use of facilities for which a consideration will be paid by the client or customer; and
      3. whose primary duty is making sales or contracts for sales, consignments, shipments, or obtaining orders for service or the use of facilities for which a consideration will be paid by the client or customer.
4. In (a)(18) of this section,
   1. “lease” means a contract by which a person owning a motor vehicle grants to another person the right to possess, use, and enjoy the motor vehicle for a specified period of time in exchange for periodic payment of a stipulated price and in which the use of the vehicle is granted for a period of at least 12 months;
   2. “motor vehicle” has the meaning given in AS 45.25.990 ;
   3. “motor vehicle dealer” has the meaning given in AS 08.66.350 , except that, in this paragraph, notwithstanding the definition of “motor vehicle dealer” given in AS 08.66.350 , “motor vehicle” has the meaning given in this section.

History. (§ 2(1) ch 171 SLA 1959; am § 1 ch 2 SLA 1962; am § 1 ch 50 SLA 1972; am § 2 ch 124 SLA 1978; am § 1 ch 115 SLA 1982; am § 2 ch 12 SLA 1990; am § 2 ch 13 SLA 1993; am § 10 ch 33 SLA 1996; am § 9 ch 107 SLA 1996; am § 1 ch 23 SLA 1997; am §§ 1, 2 ch 19 SLA 1999; am § 2 ch 102 SLA 2004; am § 39 ch 84 SLA 2005; am §§ 1, 2 ch 90 SLA 2005; am §§ 1, 2 ch 11 SLA 2014; am § 76 ch 13 SLA 2019)

Revisor's notes. —

Paragraph (15) was enacted as (14). Renumbered in 1996.

Administrative Code. —

For exemptions, see 8 AAC 15, art. 3.

Effect of amendments. —

The 2014 amendment, effective April 23, 2014, added (a)(18) and (d), and made a related change.

The 2019 amendment, effective October 17, 2019, in (a)(2), deleted “or” following “cultivating”, made stylistic changes in (a)(3), (4), and (13), in (a)(5), substituted “in this paragraph” for “for purposes of this paragraph” following “nonprofit activities;”.

Sec. 23.10.060. Payment for overtime.

1. An employer who employs employees engaged in commerce or other business, or in the production of goods or materials in the state, may not employ an employee for a workweek longer than 40 hours or for more than eight hours a day.
2. If an employer finds it necessary to employ an employee for hours in excess of the limits set in this subsection, overtime compensation for the overtime at the rate of one and one-half times the regular rate of pay shall be paid. An employee is entitled to overtime compensation for hours worked in excess of eight hours a day. An employee is also entitled to overtime compensation for hours worked in excess of 40 hours a week; in determining whether an employee has worked more than 40 hours a week, the number of hours worked shall be determined without including hours that are worked in excess of eight hours in a day because the employee has or will be separately awarded overtime compensation based on those hours.
3. This section is considered included in all contracts of employment.
4. This section does not apply to
   1. an employee employed by an employer employing fewer than four employees in the regular course of business, as “regular course of business” is defined by regulations of the commissioner;
   2. an employee employed in handling, packing, storing, pasteurizing, drying, preparing in their raw or natural state, or canning agricultural or horticultural commodities for market, or in making cheese or butter or other dairy products;
   3. an employee of an employer engaged in small mining operations where not more than 12 employees are employed if the employee is employed not in excess of 12 hours a day or 56 hours a week during a period or periods of not more than 14 workweeks in the aggregate in a calendar year during the mining season, as the season is defined by the commissioner;
   4. an employee engaged in agriculture;
   5. an employee employed in connection with the publication of a weekly, semiweekly, or daily newspaper with a circulation of less than 1,000;
   6. a switchboard operator employed in a public telephone exchange that has fewer than 750 stations;
   7. an employee in an otherwise exempted employment or proprietor in a retail or service establishment engaged in handling telephone or radio messages for the public under an agency or contract arrangement with a communications company where the communications revenue of the agency does not exceed $500 a month;
   8. an employee employed as a seaman;
   9. an employee employed in planting or tending trees, cruising, or surveying, or bucking, or felling timber, or in preparing or transporting logs or other forestry products to the mill, processing plant, railroad, or other transportation terminal if the number of employees employed by the employer in the forestry or lumbering operations does not exceed 12;
   10. an individual employed as an outside buyer of poultry, eggs, cream, or milk in their raw or natural state;
   11. casual employees as may be liberally defined by regulations of the commissioner;
   12. an employee of a hospital whose employment includes the provision of medical services;
   13. work performed by an employee under a flexible work hour plan if the plan is included as part of a collective bargaining agreement;
   14. work performed by an employee under a voluntary flexible work hour plan if
       1. the employee and the employer have signed a written agreement and the written agreement has been filed with the department; and
       2. the department has issued a certificate approving the plan that states the work is for 40 hours a week and not more than 10 hours a day; for work over 40 hours a week or 10 hours a day under a flexible work hour plan not included as part of a collective bargaining agreement, compensation at the rate of one and one-half times the regular rate of pay shall be paid for the overtime;
   15. an individual employed as a line haul truck driver for a trip that exceeds 100 road miles one way if the compensation system under which the truck driver is paid includes overtime pay for work in excess of 40 hours a week or for more than eight hours a day and the compensation system requires a rate of pay comparable to the rate of pay required by this section;
   16. an individual employed as a community health aide by a local or regional health organization as those terms are defined in AS 18.28.100 ;
   17. work performed by a mechanic primarily engaged in the servicing of automobiles, light trucks, and motor homes if the mechanic
       1. is employed as a flat-rate mechanic by a nonmanufacturing establishment primarily engaged in the business of selling or servicing motor vehicles;
       2. has signed a written agreement with the employer that specifies the mechanic’s flat hourly rate of pay and the automotive manual or manuals on which the flat rate is to be based;
       3. is compensated for all hours worked in any capacity for that employer up to and including eight hours a day and 40 hours a week at an hourly rate that is not less than the greater of
          1. 75 percent of the flat hourly rate of pay agreed on by the employer and employee under (B) of this paragraph; or
          2. twice the state minimum wage; and
       4. is compensated for all hours worked in any capacity for that employer in excess of eight hours a day or 40 hours a week at one and one-half times the rate described in (C) of this paragraph;
   18. work performed by an employee under a voluntary written agreement addressing the trading of work shifts among employees if
       1. the employee is employed by an air carrier subject to subchapter II of the Railway Labor Act (45 U.S.C. 181-188), including employment as a customer service representative;
       2. the trading agreement is not a flexible work hour plan entered into under (13) or (14) of this subsection;
       3. the trading agreement is filed with the employee’s employer; and
       4. the trading agreement states that the employee is not entitled to receive overtime for any hours worked by the employee when the employee voluntarily works those hours under a shift trading practice under which the employee has the opportunity, in the same or other work weeks, to reduce hours worked by voluntarily offering a shift for trade or reassignment;
   19. work performed by a flight crew member employed by an air carrier subject to 45 U.S.C. 181 — 188 (subchapter II of the Railway Labor Act); in this paragraph, “flight crew” means the pilot, co-pilot, flight engineer, and flight attendants.
5. The minimum amount due an employee under (d)(17)(C) and (D) of this section shall be figured on a weekly basis.

History. (§ 3 ch 171 SLA 1959; am § 1 ch 3 SLA 1962; am § 1 ch 243 SLA 1970; am § 1 ch 45 SLA 1972; am § 33 ch 127 SLA 1974; am § 1 ch 31 SLA 1980; am § 3 ch 47 SLA 1983; am § 1 ch 160 SLA 1990; am § 1 ch 103 SLA 1992; am § 5 ch 13 SLA 1993; am §§ 1, 2 ch 123 SLA 1998; am § 1 ch 39 SLA 1999; am § 2 ch 43 SLA 1999; am § 1 ch 11 SLA 2003; am § 3 ch 90 SLA 2005; am § 77 ch 13 SLA 2019)

Revisor's notes. —

The paragraphs of (d) of this section were renumbered in 1990 and 1996 to reflect the deletion of repealed paragraphs.

Cross references. —

For legislative findings concerning the amendment of subsection (b) by § 2, ch. 43, SLA 1999, see § 1, ch. 43, SLA 1999 in the 1999 Temporary & Special Acts.

For provisions directing that the amendment of (b) of this section made by sec. 2, ch. 43, SLA 1999, applies to all claims for overtime based on employment on and after July 1, 1990, and before June 2, 1999, and declaring that this application “applies retrospectively to all pending administrative and judicial actions under [that subsection] that are based on the calculation of overtime for employment [between those dates] and that are not resolved by final court judgment or administrative decision on July 3, 2003,” see §§ 1 and 2, ch. 133, SLA 2003, in the 2003 Temporary and Special Acts.

For provisions directing that the enactment of (d)(19) of this section by sec. 1, ch. 11, SLA 2003, applies to employment performed on and after January 1, 2000, and declaring that this application “applies retrospectively to actions and proceedings under [(b) of this section] that are based on a claim for overtime compensation for employment as a flight crew member on or after January 1, 2000, and that are not determined by final court judgment or administrative decision on or before May 18, 2005,” see secs. 1 and 2, ch. 19, SLA 2005, in the 2005 Temporary and Special Acts. For Superior Court case holding that ch. 19, SLA 2005 was unconstitutional, see Pearson v. Cape Smythe Air Service, Inc., 3AN-04-06493CI (Nov. 7, 2005; Superior Ct., 3rd Jud. Dist. at Anchorage.)

Administrative Code. —

For minimum wages and overtime, see 8 AAC 15, art. 2.

For exemptions, see 8 AAC 15, art. 3.

For reduction of wages, see 8 AAC 15, art. 4.

Effect of amendments. —

The 2019 amendment, effective October 17, 2019, in (d)(7), deleted “telegraphic,” following “handling” and “telegraphic message or” following “where the”, and made stylistic changes in (d)(1) and (17).

Opinions of attorney general. —

The Fair Labor Standards Act, 29 U.S.C. §§ 201-219 does not expressly preempt AS 23.10.050 — 23.10.150 on the question of whether airline employees are excluded from the mandatory overtime directive of this section. April 15, 1980, Op. Att’y Gen.

In the case of pilots, flight crews, and other interstate air carrier employees whose activities are directly and substantially related to the transportation activities of the carrier, and who are covered by a valid existing collective bargaining agreement or agreements with the carrier, the state is precluded from applying its overtime laws due to the preemptive nature of the Railway Labor Act, 45 U.S.C. §§ 151-188. April 15, 1980, Op. Att’y Gen.

In instances where no collective bargaining agreements apply, crews of interstate air carriers are nonetheless beyond the jurisdiction of state overtime law because of certain commerce clause implications. April 15, 1980, Op. Att’y Gen.

Nonflight personnel of interstate carriers who are not covered by valid existing collective bargaining agreements are not exempt from state law, and as to those individuals the provisions of state overtime law apply. April 15, 1980, Op. Att’y Gen.

Air carriers operating solely intrastate would not seem to fall under the exclusionary scope of either the Railway Labor Act, 45 U.S.C. §§ 151-188, or of the commerce clause absent unusual fact situations. Accordingly, the protections of AS 23.10.050 — 23.10.150 dealing with overtime extend to those individuals. April 15, 1980, Op. Att’y Gen.

An administrative regulation which would require an employer to include underground travel time as part of the “workweek” for calculating wages and overtime under this section might raise the issue of federal preemption but would survive such a challenge, since Congress did not intend to preclude state regulation and there is no actual conflict between such a regulation and federal law. February 22, 1989 Op. Att’y Gen.

Sec. 23.10.065. Minimum wages.

1. Except as otherwise provided for in law, an employer shall pay to each employee a minimum wage, as established herein, for hours worked in a pay period, whether the work is measured by time, piece, commission or otherwise. An employer may not apply tips or gratuities bestowed upon employees as a credit toward payment of the minimum hourly wage required by this section. Tip credit as defined by the Fair Labor Standards Act of 1938 as amended does not apply to the minimum wage established by this section. Beginning February 24, 2015, the minimum wage shall be $8.75 per hour effective January 1, 2015, $9.75 per hour effective January 1, 2016, and thereafter adjusted annually for inflation. The adjustment shall be calculated each September 30, for the proceeding January-December calendar year, by the Alaska Department of Labor and Workforce Development, using 100 percent of the rate of inflation based on the Consumer Price Index for all urban consumers for the Anchorage metropolitan area, compiled by the Bureau of Labor Statistics, United States Department of Labor; the department shall round the adjusted minimum hourly wage up to the nearest one cent; the adjusted minimum hourly wage shall apply to work performed beginning on January 1 through December 31 of the year for which it is effective.
2. Subject to the limitation under (c) of this section, an employer shall pay to each person employed as a public school bus driver wages at a rate of not less than two times the minimum wage established under (a) of this section, for hours worked in a pay period, whether work is measured by time, commission, or otherwise. An employer may not apply fringe benefits as a credit toward payment of the minimum wage established under this subsection.
3. Notwithstanding (b) of this section, an employer who contracts with the Department of Education and Early Development, a school district, or a regional educational attendance area to provide school bus transportation services is not required to adjust school bus driver wages under (b) of this section, except when entering into or renewing the contract.
4. If the minimum wage determined under (a) of this section is less than one dollar over the federal minimum wage, the Alaska minimum wage shall be set at one dollar over the federal minimum wage. This amount shall be adjusted in subsequent years by the method established in (a) of this section.

History. (§ 4 ch 171 SLA 1959; am § 2 ch 2 SLA 1962; am § 1 ch 41 SLA 1974; am §§ 3, 4 ch 12 SLA 1990; am § 3 ch 110 SLA 2002; am § 1 ch 148 SLA 2003; am § 1 ch 56 SLA 2009; am §§ 3, 4, 2014 General Election Ballot Measure No. 3)

Revisor’s notes. —

In 1999, “Department of Education” was changed to “Department of Education and Early Development” in (c) of this section in accordance with § 89, ch. 58, SLA 1999.

Subsection (a) was repealed and reenacted by 2014 General Election Ballot Measure No. 3, and in 2015 a comma was added to conform the initiative to the style of the Alaska Statutes, and “Beginning February 24, 2015,” was substituted for “Beginning with the passage of this Act”. Subsection (d) was enacted as section 4 of 2014 General Election Ballot Measure No. 3 and was codified in 2014 at which time “(a) of this section” was substituted for “Section 3” in two places.

Although, Ballot Measure No. 2 (Initiative 13-MINW), which was enacted at the 2014 general election and repealed and reenacted subsection (a) and enacted subsection (d), provides that an increase in the minimum wage is to take effect January 1, 2015, the Ballot Measure itself did not take effect until February 24, 2015.

Cross references. —

For the Fair Labor Standards Act of 1938, see 29 U.S.C. 201-219.

Administrative Code. —

For minimum wages and overtime, see 8 AAC 15, art. 2.

For reduction of wages, see 8 AAC 15, art. 4.

Effect of amendments. —

The 2009 amendment, effective July 24, 2009, repealed and reenacted subsection (a), which read, “Except as provided under (b) of this section and as otherwise provided for in law, for work performed on or after January 1, 2003, an employer shall pay to each employee wages at a rate of not less than $7.15 an hour for hours worked in a pay period, whether the work is measured by time, piece, commission, or otherwise. An employer may not apply tips or gratuities bestowed upon employees as a credit toward payment of the minimum hourly wage required by this section. Tip credit as defined by the Fair Labor Standards Act of 1938 as amended does not apply to the minimum wage established by this section.”

The 2014 amendment, effective February 24, 2015, rewrote (a), which read, “Except as provided in (b) of this section and as otherwise provided by law, for hours worked in a pay period, whether the work is measured by time, piece, commission, or otherwise, an employer shall pay to each employee wages at a rate that is not less than $7.25 an hour until December 31, 2009, and thereafter not less than 50 cents an hour more than the federal minimum wage. An employer may not apply tips or gratuities bestowed on employees as a credit toward payment of the minimum hourly wage required by this section. Tip credit as defined by the Fair Labor Standards Act of 1938, as amended, does not apply to the minimum wage established by this section.”

Editor’s notes. —

2014 General Election Ballot Measure No. 3, was enacted by the voters at the general election of November 4, 2014. The results of the general election were certified by the Lieutenant Governor November 26, 2014. Under art. XI, sec. 6, Constitution of the State of Alaska, the initiative’s provisions take effect February 24, 2015.

For findings and declaration and purpose for subsections (a) and (d), see secs. 1 and 2 of 2014 General Election Ballot Measure No. 3.

Sec. 23.10.070. Exemptions from minimum wage.

To the extent necessary to prevent curtailment of opportunities of employment, the commissioner may by regulations or orders provide for the employment at wages lower than the minimum wage prescribed in AS 23.10.050 — 23.10.150 of

1. an individual whose earning capacity is impaired by physical or mental deficiency, age, or injury, at the wages and subject to the restrictions and for the period of time that are fixed by the commissioner; and
2. an apprentice at the wages that are approved by the commissioner; or
3. a learner at the wages and subject to the restrictions and for the periods of time that are fixed by the commissioner.

History. (§ 5 ch 171 SLA 1959; am § 3 ch 2 SLA 1962)

Administrative Code. —

For exemptions, see 8 AAC 15, art. 3.

Sec. 23.10.071. Wages for work therapy.

1. For work therapy, as defined in AS 47.37.270 , a participant in a residential drug abuse or alcoholism treatment program designed to extend more than 120 days may be paid less than the minimum wage prescribed in AS 23.10.050 — 23.10.150 if the rate has been approved by the commissioner under this section and is in compliance with federal law.
2. The commissioner shall adopt regulations regarding the payment of wages for work therapy.  In adopting the regulations, the commissioner shall consider whether the work performed by the patient
   1. is solely for the benefit of the patient and is that which is ordinarily carried on by patients in a residential treatment program;
   2. would ordinarily be performed by full-time employees of the program;
   3. is work that may produce income to the patient, other than wages;
   4. produces goods or services the proceeds of which will economically or otherwise benefit the owners, operators, or businesses of the rehabilitation program; and
   5. creates an unfair competition with private enterprise because of lower wage standards.

History. (§ 1 ch 58 SLA 1983)

Sec. 23.10.075. Labor standards and safety division.

There is established in the department the division of labor standards and safety. The director of the division is responsible to the commissioner. The director shall administer AS 18.60.010 — 18.60.105 and AS 23.10.050 — 23.10.150 .

History. (§ 6(1) ch 171 SLA 1959; am E.O. No. 52, § 4 (1982))

Sec. 23.10.080. Powers and duties of division.

The director, or an authorized representative of the director, shall

1. investigate and ascertain the wages and related conditions and standards of employment of any employee in the state;
2. enter the place of business or employment of an employer at reasonable times for the purpose of inspecting payroll records that relate to the question of wages paid or hours worked;
3. require and subpoena from an employer a statement in writing, when the director or the representative considers it necessary, of hours worked by and the wages paid to a person in the employ of the employer, and the commissioner may require the employer to make the statement under oath;
4. question an employee in a place of employment during work hours with respect to the wages paid and the hours worked by the employees;
5. compel the attendance of witnesses and the production of books, papers, and documents by subpoena when necessary for the purpose of a hearing or investigation provided for in AS 23.10.050 — 23.10.150 .

History. (§ 6(2) ch 171 SLA 1959)

Administrative Code. —

For procedures relating to violations, investigations, or hearings, see 8 AAC 15, art. 5.

Sec. 23.10.085. Scope of administrative regulations; room and board deductions.

1. The director may adopt, amend, or rescind administrative regulations not inconsistent with the purposes and provisions of AS 23.10.050 — 23.10.150 that are necessary for the administration of AS 23.10.050 — 23.10.150 .
2. The regulations may, without limiting the generality of (a) of this section, define terms used in AS 23.10.050 — 23.10.150 , and restrict or prohibit industrial homework or other acts or practices that the director finds appropriate to carry out the purpose of AS 23.10.050 — 23.10.150 , or to prevent the circumvention or evasion of AS 23.10.050 — 23.10.150.
3. The regulations may permit deductions by an employer from the minimum wage applicable under AS 23.10.050 — 23.10.150 to employees for the reasonable cost, as determined by the director on an occupation basis, of furnishing board or lodging if board or lodging is customarily furnished by the employer and used by the employee.

History. (§ 6(3) ch 171 SLA 1959; am § 1 ch 76 SLA 2004; am § 4 ch 90 SLA 2005)

Administrative Code. —

For minimum wages and overtime, see 8 AAC 15, art. 2.

For exemptions, see 8 AAC 15, art. 3.

For reduction of wages, see 8 AAC 15, art. 4.

For procedures relating to violations, investigations, or hearings, see 8 AAC 15, art. 5.

Sec. 23.10.090. Administrative procedures.

Regulations adopted or hearings conducted under AS 23.10.050 — 23.10.150 shall be adopted or conducted and be subject to judicial review in accordance with AS 44.62 (Administrative Procedure Act).

History. (§ 6(4) ch 171 SLA 1959)

Administrative Code. —

For procedures relating to violations, investigations, or hearings, see 8 AAC 15, art. 5.

Sec. 23.10.095. Adoption of federal regulations.

The commissioner may adopt regulations and interpretations that are made by the administrator of the Wage and Hour Division of the federal Department of Labor and that are not inconsistent with AS 23.10.050 — 23.10.150 .

History. (§ 6(5) ch 171 SLA 1959)

Administrative Code. —

For minimum wages and overtime, see 8 AAC 15, art. 2.

For reduction of wages, see 8 AAC 15, art. 4.

Sec. 23.10.100. Employer to keep records.

1. An employer shall keep for a period of at least three years at the place where an employee is employed a record of the name, address, and occupation of each employee, the rate of pay and the amount paid each pay period to each employee, the hours worked each day and each workweek by each employee, and other payroll information that the commissioner may require.
2. The commissioner or an authorized representative of the commissioner may copy the employer’s records at any reasonable time.  An employer shall furnish to the commissioner or the representative on demand a sworn statement of the employer’s records, and the commissioner may require that the sworn statement be made upon forms the commissioner has prescribed or approved.

History. (§ 7 ch 171 SLA 1959)

Administrative Code. —

For minimum wages and overtime, see 8 AAC 15, art. 2.

Sec. 23.10.105. Posting summary required.

An employer subject to AS 23.10.050 — 23.10.150 shall keep a summary or abstract of these sections, approved by the commissioner, posted in a conspicuous location at the place where a person subject to them is employed. An employer shall be furnished copies of a summary by the state on request without charge.

History. (§ 8 ch 171 SLA 1959)

Sec. 23.10.110. Remedies of employee; attorney fees; offers of judgment; settlement; waiver.

1. An employer who violates a provision of AS 23.10.060 or 23.10.065 is liable to an employee affected in the amount of unpaid minimum wages, or unpaid overtime compensation, as the case may be, and, except as provided in (d) of this section, in an additional equal amount as liquidated damages.
2. An action to recover from the employer the wages and damages for which the employer is liable may be maintained in a competent court by an employee personally and for other employees similarly situated, or an employee may individually designate in writing an agent or representative to maintain an action for the employee.  The consent shall be filed in the court in which the action is brought.  At the request of a person paid less than the amount to which the person is entitled under AS 23.10.050 — 23.10.150 , the commissioner may take an assignment in trust for the employee of the full amount to which the employee is entitled under this section and may bring any legal action necessary to collect the claim.
3. The court in an action brought under this section shall, in addition to a judgment awarded to the plaintiff, allow costs of the action and, except as provided in (e) — (h) of this section, reasonable attorney fees to be paid by the defendant. The attorney fees in the case of actions brought under this section by the commissioner shall be remitted by the commissioner to the Department of Revenue. The commissioner may not be required to pay the filing fee or other costs. The commissioner in case of suit has power to join various claimants against the same employer in one cause of action.
4. In an action under (a) of this section to recover unpaid overtime compensation or liquidated damages for unpaid overtime, if the defendant shows by clear and convincing evidence that the act or omission giving rise to the action was made in good faith and that the employer had reasonable grounds for believing that the act or omission was not in violation of AS 23.10.060 , the court may decline to award liquidated damages or may award an amount of liquidated damages less than the amount set out in (a) of this section.
5. If the plaintiff prevails in an action for unpaid overtime compensation under (a) of this section, the court shall award reasonable attorney fees to the plaintiff unless the defendant shows by clear and convincing evidence that the act or omission giving rise to the action was made in good faith and that the defendant had reasonable grounds for believing that the act or omission was not in violation of AS 23.10.060 , in which case
   1. the court may award attorney fees to the plaintiff in accordance with court rules; or
   2. if the defendant would be entitled to attorney fees if the action were subject to the standards under court rule offers of judgment, the court may not award attorney fees to either the plaintiff or the defendant.
6. If the defendant prevails in an action for unpaid overtime compensation under (a) of this section and had previously made an offer of judgment to the plaintiff, the court shall award attorney fees to the defendant unless the plaintiff proves to the satisfaction of the court that the action was both brought and prosecuted in good faith and that the plaintiff had reasonable grounds for believing that the act or omission was in violation of AS 23.10.060 . If the court awards attorney fees to the defendant, the award shall be made in accordance with court rule.
7. Failure to inquire into Alaska law is not consistent with a claim of good faith under this section.
8. Subsections (d) — (g) of this section do not apply to an action brought under this section by the commissioner.
9. The commissioner may supervise the payment of the unpaid overtime compensation owing to an employee under AS 23.10.060 . Payment in full in accordance with an agreement by an employee to settle a claim for unpaid overtime compensation or liquidated damages for unpaid overtime compensation constitutes a waiver of any right as to this claim the employee may have under (a) of this section to unpaid overtime compensation or liquidated damages for unpaid overtime compensation.
10. In a settlement for unpaid overtime compensation that is not supervised by the department or the court, an employee is entitled to liquidated damages under (a) of this section unless the employee and the employer enter into a written settlement agreement in which the employee expressly waives the right to receive liquidated damages. A private written settlement agreement under this subsection is not valid unless submitted to the department for review. The department shall review the agreement and approve it if it is fair to the parties. The department shall approve or deny an agreement within 30 days of receipt. A waiver of liquidated damages may not be a condition of employment.

History. (§ 9(3) ch 171 SLA 1959; am §§ 1 — 3 ch 37 SLA 1995; am § 22 ch 22 SLA 2015)

Administrative Code. —

For procedures relating to violations, investigations, or hearings, see 8 AAC 15, art. 5.

Effect of amendments. —

The 2015 amendment, effective May 15, 2015, substituted “this section” for “this subsection” at the end of (g).

Sec. 23.10.115. Enforcement by injunction.

If it appears to the commissioner that an employer is engaged in an act or practice that violates or will violate a provision of AS 23.10.050 — 23.10.150 or of a regulation adopted under these sections, the commissioner may bring an action in a competent court to enjoin the act or practice, and to enforce compliance with AS 23.10.050 — 23.10.150 or with the regulation. Upon a proper showing, a permanent or temporary injunction or restraining order shall be granted without bond.

History. (§ 9(4) ch 171 SLA 1959)

Sec. 23.10.120. Enforcement of subpoenas.

If a person fails to comply with a subpoena issued under AS 23.10.080 , or if a witness refuses to produce evidence or to testify to a matter regarding which the witness may be lawfully interrogated, a competent court shall, upon application of the commissioner or an authorized representative, compel obedience by proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued by the court or a refusal to testify before it.

History. (§ 9(5) ch 171 SLA 1959)

Sec. 23.10.125. Collective bargaining.

AS 23.10.050 — 23.10.150 do not limit the right of employees to bargain collectively through representatives of their own choosing to establish wages or conditions of work in excess of the applicable minimum under AS 23.10.050 — 23.10.150 or to establish hours of work shorter than the applicable maximum under AS 23.10.050 — 23.10.150.

History. (§ 10 ch 171 SLA 1959)

Sec. 23.10.130. Statute of limitations.

An action for unpaid minimum wages, unpaid overtime compensation, or liquidated damages under AS 23.10.050 — 23.10.150 is forever barred unless it is started within two years after the cause of action accrues. For the purposes of this section an action is considered to be started on the date when the complaint is filed.

History. (§§ 11, 12 ch 171 SLA 1959; am § 57 ch 59 SLA 1982)

Sec. 23.10.135. Violations.

An employer violates AS 23.10.050 — 23.10.150 if the employer (1) hinders or delays the commissioner or an authorized representative of the commissioner in the performance of their duties in the enforcement of AS 23.10.050 — 23.10.150 ; (2) refuses to admit the commissioner or an authorized representative to any place of employment; (3) fails to keep or falsifies a record required under the provisions of AS 23.10.050 — 23.10.150; (4) refuses to make a record accessible, or to furnish a sworn statement of the record, or to give information required for the enforcement of AS 23.10.050 — 23.10.150, upon demand, to the commissioner or an authorized representative; (5) fails to post an abstract of AS 23.10.050 — 23.10.150 as required by AS 23.10.105 ; (6) discharges or in any other manner discriminates against an employee because the employee has filed a complaint, or has instituted or caused to be instituted any proceeding under or related to AS 23.10.050 — 23.10.150, or has testified or is about to testify in such a proceeding.

History. (§ 9(1) ch 171 SLA 1959)

Sec. 23.10.140. Penalty.

An employer who violates a provision of AS 23.10.050 — 23.10.150 , or of any regulation or order of the commissioner issued under it, upon conviction is punishable by a fine of not less than $100 nor more than $2,000, or by imprisonment for not less than 10 nor more than 90 days, or by both. Each day a violation occurs constitutes a separate offense.

History. (§ 9(2) ch 171 SLA 1959; am § 1 ch 113 SLA 1972)

Sec. 23.10.145. Definitions.

If not defined in this title or in regulations adopted under this title, terms used in AS 23.10.050 — 23.10.150 shall be defined as they are defined in 29 U.S.C. 201 — 219 (Fair Labor Standards Act of 1938), as amended, or the regulations adopted under those sections.

History. (§ 2(2) ch 171 SLA 1959; am § 4 ch 47 SLA 1983; am § 5 ch 90 SLA 2005)

Sec. 23.10.150. Short title.

AS 23.10.050 — 23.10.150 may be cited as the Alaska Wage and Hour Act.

History. (§ 1 ch 171 SLA 1959)

Secs. 23.10.155 — 23.10.320. Equal pay for women, discrimination in employment, and age discrimination. [Repealed, § 8 ch 117 SLA 1965, § 5 ch 125 SLA 1980. For present provisions, see AS 18.80.220.]

Sec. 23.10.325. Purpose.

It is the purpose of AS 23.10.325 — 23.10.370 to establish protective standards for child labor to the end that their health, morals, education, and future welfare will be protected during the formative years and to the further end that any abuses or unjust exploitation of this labor will be effectively prohibited.

History. (§ 1 ch 73 SLA 1949)

Administrative Code. —

For entertainment industry, see 8 AAC 5, art. 5.

Sec. 23.10.330. Exempted employment.

1. AS 23.10.325 — 23.10.370 do not prohibit employment of a child under the direct supervision of a parent in a business owned and operated by the parent or the work of a child on a boat owned and operated by the parent of the child.
2. Notwithstanding AS 23.10.335 — 23.10.350 , a minor of any age may be employed as a performer in the entertainment industry. The provisions of AS 23.10.335 — 23.10.350 and AS 23.10.360(a) and 23.10.360(c) concerning times, hours, or days of work do not apply to the employment of a minor as a performer in the entertainment industry. The department may adopt regulations to implement this subsection. In this subsection, a “performer in the entertainment industry” means a performer in advertisements and television, film, radio, and theater productions but does not include employment on the premises of a business offering any form of adult entertainment under AS 23.10.350(f) regardless of the nature of the work performed by the minor.

History. (§ 1 ch 73 SLA 1949; am § 1 ch 86 SLA 1992; am § 2 ch 18 SLA 1995)

Administrative Code. —

For entertainment industry, see 8 AAC 5, art. 5.

Collateral references. —

Lawn mowing by minors as violation of child labor statutes. 56 ALR3d 1166.

Sec. 23.10.332. Authorization for children under 17 to work.

1. Except for employment exempted under AS 23.10.330 and other employment specifically exempted by regulations adopted by the department, a minor under 17 years of age may not be employed or allowed to work without the written authorization of the commissioner unless authorized under AS 23.10.360 or under (c) of this section.
2. The department shall adopt regulations necessary to implement this section.
3. An employer may employ a minor who is at least 14 years of age to perform a specific job consisting of listed duties without the written authorization of the commissioner under (a) of this section if the employer has, in advance, secured the approval of the commissioner for a minor to perform that job and the employer files the written consent from the minor’s parent or guardian described in (d) of this section. The employer may not change any of the listed duties of a job to be performed by a minor without prior approval of the commissioner.
4. A written consent from a parent or guardian filed under (c) of this section
   1. is valid only for the job and listed duties specified on the consent;
   2. must be filed with the commissioner within seven calendar days after the minor begins working the job specified in the consent;
   3. is valid for the calendar year in which it is executed or, in the case of a written consent executed in December, for that calendar year, the next calendar year, or both, depending on the terms of the written consent;
   4. shall be on a form provided by the department; the department may use the same form that it uses to issue work permits under (a) of this section to secure parental signatures under this subsection; and
   5. must be signed by a parent or legal guardian of the minor before the date the minor begins working the job specified in the consent.

History. (§ 3 ch 112 SLA 1976; am §§ 1, 2 ch 76 SLA 2002)

Administrative Code. —

For employment of minors under 18 years of age, see 8 AAC 5, art. 2.

Sec. 23.10.335. Employment of children under 14.

A minor under 14 years of age may not be employed or allowed to work in an occupation outside school hours except in domestic employment, baby-sitting, and handiwork in and about private homes; newspaper delivery or sales; or canneries in warehouse work casing cans under competent supervision.

History. (§ 1 ch 73 SLA 1949)

Sec. 23.10.340. Employment of children under 16.

1. A minor under 16 years of age may not be employed for more than a combined total of nine hours school attendance and employment in one day.  If employed, the minor’s work may be performed only between 5 a.m. and 9 p.m.  Employment outside school hours may not exceed 23 hours in one week, domestic work and baby-sitting excepted.
2. [Repealed, § 7 ch 112 SLA 1976.]

History. (§ 1 ch 73 SLA 1949; § 3 ch 73 SLA 1949; am § 2 ch 28 SLA 1951; am § 7 ch 112 SLA 1976; am § 1 ch 55 SLA 1981)

Sec. 23.10.345. Exemptions for minors over 16 or who have graduated from high school. [Repealed, § 7 ch 112 SLA 1976.]

Sec. 23.10.350. Employment of person under 18.

1. A minor under 18 years of age may not be employed or allowed to work
   1. more than six days a week;
   2. in hazardous excavation, or underground in mines, or as hoisting engineer in mines; or
   3. in an occupation dangerous to life or limb or injurious to the health of the minor.
2. If the commissioner determines that the duties to be performed by the minor would not unduly endanger the life, limb, or health of the minor and if the employment meets the conditions of wages and hours prevailing for the majority of the employees in the industry at the time of employment, the commissioner may grant an exemption in writing from (a) of this section for a minor 16 — 18 years of age to work at those duties
   1. outside school hours, or while on school vacation, if the minor is attending school; or
   2. if the minor is no longer attending school.
3. Except as provided in (e) of this section, a person under 18 years of age who is scheduled to work for six consecutive hours or more is entitled to a break of at least 30 minutes during the course of the work shift. The break required by this subsection may be scheduled at the convenience of the employer but must occur after the first hour and a half of work and before the beginning of the last hour of work. A person under 18 years of age who works for five consecutive hours without a break is entitled to a break of at least 30 minutes before continuing to work. This subsection may be modified by the terms of a collective bargaining agreement that covers the employment of the person under 18. This subsection may be modified on occasion by mutual agreement between the employer and the employee.
4. Notwithstanding AS 23.10.055(a)(11) , failure to provide the unpaid break periods required by (c) of this section creates a minimum wage liability under AS 23.10.065 for the break that the employee did not receive or received late. A claim for minimum wage in lieu of the unpaid break is enforceable under AS 23.10.110 .
5. The provisions of (c) of this section do not apply to
   1. an individual employed in the catching, trapping, cultivating or farming, netting, or taking of any kind of fish, shellfish, or other aquatic forms of animal and vegetable life;
   2. an individual employed by a member of the individual’s family; in this paragraph, “member of the individual’s family” means the individual’s spouse, parent, stepparent, grandparent, step-grandparent, great grandparent, step-great grandparent, brother, sister, uncle, aunt, great-uncle, or great-aunt, whether of the whole or half blood or by adoption or by marriage.
6. A minor under the age of 18 may not be employed or allowed to work in any capacity on the premises of a business that offers adult entertainment. In this subsection, “business that offers adult entertainment” means a business in which one or more individuals are employed or contracted to, wholly or in part, or permitted to entertain others by
   1. removing clothes or other items that clothe or hide the person’s body;
   2. dancing or in any other manner exhibiting the individual’s body in a completely or almost completely unclothed state;
   3. participating in an actual or simulated illegal, indecent, or lewd exhibition, act, or practice including
      1. sexual penetration;
      2. the lewd exhibition or touching of a person’s genitals, anus, or breast; or
      3. bestiality.

History. (§§ 2, 3 ch 73 SLA 1949; § 4 ch 73 SLA 1949; am §§ 1, 2 ch 28 SLA 1951; am § 84 ch 127 SLA 1974; am § 4 ch 112 SLA 1976; am § 2 ch 86 SLA 1992; am § 3 ch 18 SLA 1995)

Revisor’s notes. —

In 2005, in subsection (d), “AS 23.10.055 (a)(11)” was substituted for “AS 23.10.055 (11)” to reflect the addition of AS 23.10.055(b) and (c) by § 2, ch. 90, SLA 2005.

Administrative Code. —

For employment of minors 14 and 15 years of age, see 8 AAC 5, art. 1.

For employment of minors under 18 years of age, see 8 AAC 5, art. 2.

For certificates of age, see 8 AAC 5, art. 3.

Sec. 23.10.355. Employment of persons under 21.

A person under 21 may not be employed or allowed to sell or serve alcoholic beverages or to work on a licensed premises, except as provided in AS 04.16.049 .

History. (§ 3 ch 73 SLA 1949; am § 2 ch 28 SLA 1951; am § 24 ch 245 SLA 1970; am § 5 ch 112 SLA 1976; am § 58 ch 59 SLA 1982; am § 17 ch 109 SLA 1983)

Legislative history reports. —

Chapter 245, SLA 1970 (HCSSB 399 am H), was identical to CSHB 406 (Jud.). For report on CSHB 406 (Jud.), see 1970 House Journal Supplement No. 6.

Sec. 23.10.360. Regulations for minimum standards and work opportunities.

1. The department may, from time to time after public notice and hearing, adopt regulations and issue orders establishing minimum standards for safety, working conditions, kind and extent of work in various phases of the respective fields of employment, maximum hours for the day and week, and minimum rates of pay, and other reasonable safeguards compatible with the welfare of all minors covered by AS 23.10.325 — 23.10.370 .
2. The department shall make cooperative arrangements with other state and federal agencies and shall adopt the regulations that are necessary to provide opportunities for work experience in safe and healthful occupations for minors.
3. The department shall, after notice and hearing, adopt regulations authorizing the employment of minors under 18 years of age and exempting appropriate employers from the requirement to secure the commissioner’s written authorization under AS 23.10.332(a) .

History. (§ 5 ch 73 SLA 1949; am § 6 ch 112 SLA 1976; am § 3 ch 76 SLA 2002)

Administrative Code. —

For employment of minors 14 and 15 years of age, see 8 AAC 5, art. 1.

For employment of minors under 18 years of age, see 8 AAC 5, art. 2.

For certificates of age, see 8 AAC 5, art. 3.

For entertainment industry, see 8 AAC 5, art. 5.

Sec. 23.10.365. Enforcement.

The department shall enforce AS 23.10.325 — 23.10.370 .

History. (§ 6 ch 73 SLA 1949)

Sec. 23.10.370. Penalty.

1. Except as provided in (b) of this section, a person who violates a provision of AS 23.10.325 — 23.10.370 is guilty of a misdemeanor and upon conviction is punishable by a fine of not more than $500, or by imprisonment for not more than 90 days, or by both.
2. A person who employs a minor in violation of AS 23.10.350(f) is guilty of a class A misdemeanor for the first offense and a class C felony for the second and each subsequent offense.

History. (§ 7 ch 73 SLA 1949; am §§ 4, 5 ch 18 SLA 1995)

Sec. 23.10.375. Policy.

The welfare of the state demands that adequate provision be made for financing the return transportation of certain persons to their place of recruitment inside and outside the state upon termination of employment.

History. (ch 67 SLA 1949)

Sec. 23.10.380. Right to return transportation.

1. An employer who furnishes, finances, agrees to furnish or finance, or in any way provides transportation for a person from the place of hire to a point inside or outside the state to employ the person shall provide the person with return transportation to the place of hire from which transportation was furnished or financed, or to a destination agreed upon by the parties, with transportation to be furnished or financed
   1. on or after the termination of employment for a cause considered good and sufficient by the department, beyond the control of the person, or on or after the termination of the contract of employment or a renewal of the contract; and
   2. upon the request of the person or the department made within 45 days after the termination of employment.
2. Upon the termination of employment the subsistence of the employee may not continue longer than 10 days after the termination or until transportation is available, whichever occurs first.

History. (§ 1 ch 67 SLA 1949; am § 1 ch 136 SLA 1959; am § 1 ch 164 SLA 1960)

Administrative Code. —

For transportation of employees, see 8 AAC 20.

Sec. 23.10.385. Enforcement by civil action.

1. The department may take a written assignment of a right of action provided by AS 23.10.380 , and may prosecute the action.  The department may join various employees in one claim and in case of suit may join them in one action.
2. The general provisions of law respecting wage collection suits brought by the department in behalf of employees apply in an action brought under this section.

History. (§ 2 ch 67 SLA 1949)

Administrative Code. —

For transportation of employees, see 8 AAC 20.

Sec. 23.10.390. Construction of contracts.

AS 23.10.375 — 23.10.400 are considered a part of every contract of hire involving transportation of an employee to and from this state or from one part of the state to another.

History. (§ 2(a) ch 67 SLA 1949)

Sec. 23.10.395. Orders and regulations.

The department may issue orders and adopt regulations necessary to carry out AS 23.10.375 — 23.10.400 .

History. (§ 4 ch 67 SLA 1949)

Administrative Code. —

For transportation of employees, see 8 AAC 20.

Sec. 23.10.400. Penalty.

An employer who violates AS 23.10.375 — 23.10.400 is, in addition to any civil liability, guilty of a misdemeanor and upon conviction is punishable by a fine of not more than $1,000.

History. (§ 3 ch 67 SLA 1949)

Sec. 23.10.405. Legislative declaration of hazard.

Employment in underground coal mines, underground lode mines, underground placer mines, in underground coal, lode, or placer workings, or in all other underground mines or workings is injurious to health and dangerous to life and limb.

History. (§ 43-2-1 ACLA 1949)

Sec. 23.10.410. Limitation on period of employment in underground mines and requirement for pay for certain work.

1. Except as provided in (d) — (f) of this section, a miner may not be employed in an underground mine or workings for more than 10 hours in 24 hours, except on a day when a change of shift is made. The 10-hour limitation applies only to work actually performed at the mine face or other place where the work is actually carried on and excludes time for meals, travel to or from the mine site, and travel between the mine portal and the mine face, whether in going on or off shift, or in going to or returning from meals. However, an employer shall pay wages for the time worked from the time the miner enters the mine at the mine portal, whether or not work is performed at the mine face or other place where the work is actually carried on, until the miner leaves the mine.
2. If life or property is in imminent danger, the 10-hour period may be extended for the continuance of the emergency.
3. The department may not, by regulation, impose more restrictions on the hours of work of miners than are imposed by this section. The department may issue orders and adopt regulations as necessary to carry out the purposes of this section.
4. On application from an employer, the commissioner may grant a variance that permits employment in an underground mine or workings for more than 10 but not more than 12 hours in a 24-hour period if the commissioner finds that
   1. the additional working time is permitted under the terms of a collective bargaining agreement entered into by a bargaining organization that represents workers performing the work covered by the variance; or
   2. the extension is in the best interest of resident workers of the state.
5. If an employer intends to employ a miner for more than eight hours in 24 hours under (a) of this section, the employer shall notify the department.
6. The department may revoke a variance granted under (d) of this section or reduce the 10-hour limitation on hours of work set in (a) of this section to eight hours if the department finds that
   1. a significant violation of state or federal law has occurred at the mine relating to health and safety;
   2. the employer has not abated the hazard causing the violation after receiving notice from the commissioner and an opportunity to cure the problem;
   3. the reduction of hours of work is necessary to protect the health and safety of the miners; and
   4. the reduction of hours of work is in the best interest of the resident workers of the state.
7. An employer that has abated a hazard that was the cause of a violation described in (f)(1) of this section may notify the department of the abatement. The department shall reinstate the variance or remove the reduction of hours, as appropriate, within 30 days after receiving the notice from the employer if the department finds that the hazard has been abated.
8. In this section, “miner”
   1. means a person who works in an underground mine or workings and is engaged in actual mining operations;
   2. does not include mechanics, warehousemen, electricians, and other support personnel at an underground mine or workings.

History. (§ 43-2-2 ACLA 1949; am § 2 ch 25 SLA 1996)

Cross references. —

For findings and intent concerning the 1996 amendment of this section, see § 1, ch. 25, SLA 1996 in the Temporary and Special Acts.

Editor’s notes. —

Section 3, ch. 25, SLA 1996 provides that the provisions of that Act, which amended this section, “are severable under AS 01.10.030 .”

Sec. 23.10.415. Penalties.

1. A person who, whether as principal or agent, employs a person in violation of the provisions of AS 23.10.410 is guilty of a misdemeanor, and upon a first conviction is punishable by a fine of not less than $100 nor more than $500, or by imprisonment in a jail for not less than 60 days, nor more than six months, or by both.
2. Upon a second conviction under AS 23.10.410 , the punishment is imprisonment in a jail for not less than 60 days, nor more than one year.  A second conviction under AS 23.10.410 means a conviction for a violation of AS 23.10.410 committed within a period of two years after a previous conviction for a violation of AS 23.10.410.  Other convictions are first convictions.  Each day’s violation of the provisions of AS 23.10.410 is a separate offense.

History. (§ 43-2-3 ACLA 1949)

Sec. 23.10.420. Train crews. [Repealed, § 1 ch 40 SLA 1983.]

Sec. 23.10.430. Access to personnel files.

1. An employer shall permit an employee or former employee to inspect and make copies of the employee’s personnel file and other personnel information maintained by the employer concerning the employee under reasonable rules during regular business hours. The employer may require an employee or former employee who requests copies of material under this subsection to pay the reasonable cost of duplication.
2. This section does not supersede the terms of a collective bargaining agreement.
3. In this section,
   1. “employee” means a person employed by an employer;
   2. “employer” means a person who employs one or more other persons and includes the state, the University of Alaska, the Alaska Railroad, and political subdivisions of the state.

History. (§ 1 ch 24 SLA 1989)

Collateral references. —

Validity and construction of statute giving employee the right to review and comment upon personnel record maintained by employer. 64 ALR4th 619.

Sec. 23.10.440. Posting of information on sexual harassment. [Repealed, § 2 ch 65 SLA 1992.]

Sec. 23.10.500. — 23.10.550. [Renumbered as AS 39.20.500 — 39.20.550.]

Sec. 23.10.600. Employer protection from litigation.

1. If an employer has established a drug and alcohol testing policy and initiated a testing program under AS 23.10.600 — 23.10.699 , a person may not bring an action for damages against the employer for
   1. actions in good faith based on the results of a positive drug test or alcohol impairment test;
   2. failure to test for drugs or alcohol impairment or failure to test for a specific drug or another controlled substance;
   3. failure to test or, if tested, failure to detect a specific drug or other substance, a medical condition, or a mental, emotional, or psychological disorder or condition; or
   4. termination or suspension of a drug or alcohol prevention or testing program or policy.
2. A person may not bring an action for damages based on test results against an employer who has established and implemented a drug and alcohol testing program under AS 23.10.600 — 23.10.699 unless the employer’s action was based on a false positive test result and the employer knew or clearly should have known that the result was in error and ignored the true test result because of reckless or malicious disregard for the truth or the wilful intent to deceive or be deceived.
3. In a claim, including a claim under AS 23.10.600 — 23.10.699 , if it is alleged that an employer’s action was based on a false positive test result,
   1. there is a rebuttable presumption that the test result was valid if the employer complied with the provisions of AS 23.10.600 — 23.10.699 ; and
   2. the employer is not liable for monetary damages if the employer’s reliance on a false positive test result was reasonable and in good faith.
4. A person may not bring an action for damages against an employer for an action taken related to a false negative drug test or alcohol impairment test.
5. A person may not bring an action against an employer based on failure of the employer to establish a program or policy on substance abuse prevention or to implement drug testing or alcohol impairment testing.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.610. Limits on causes of action for disclosures.

A person may not bring an action for defamation of character, libel, slander, or damage to reputation against an employer who has established a program of drug testing or alcohol impairment testing under AS 23.10.600 — 23.10.699 if the action is based on drug or alcohol testing unless

1. the results of the test were disclosed to a person other than the employer, an authorized employee, agent or representative of the employer, the tested employee, the tested prospective employee, or another person authorized or privileged by law to receive the information;
2. the information disclosed was a false positive test result;
3. the false positive test result was disclosed negligently; and
4. all elements of an action for defamation of character, libel, slander, or damage to reputation as established by law are satisfied.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.615. Employer’s compliance voluntary.

Compliance with AS 23.10.600 — 23.10.699 by employers is voluntary.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.620. Employer policy.

1. Under AS 23.10.600 — 23.10.699 , an employer may only carry out the testing or retesting for the presence or evidence of use of drugs or alcohol after adopting a written policy for the testing and retesting and informing employees of the policy. The employer may inform employees by distributing a copy of the policy to each employee subject to testing or making the policy available to employees in the same manner as the employer informs its employees of other personnel practices, including inclusion in a personnel handbook or manual or posting in a place accessible to employees. The employer shall inform prospective employees that they must undergo drug testing.
2. The written policy on drug and alcohol testing must include, at a minimum,
   1. a statement of the employer’s policy respecting drug and alcohol use by employees;
   2. a description of those employees or prospective employees who are subject to testing;
   3. the circumstances under which testing may be required;
   4. the substances as to which testing may be required;
   5. a description of the testing methods and collection procedures to be used, including an employee’s right to a confirmatory drug test to be reviewed by a licensed physician or doctor of osteopathy after an initial positive drug test result in accordance with AS 23.10.640(d) ;
   6. the consequences of a refusal to participate in the testing;
   7. any adverse personnel action that may be taken based on the testing procedure or results;
   8. the right of an employee, on the employee’s request, to obtain the written test results and the obligation of the employer to provide written test results to the employee within five working days after a written request to do so, so long as the written request is made within six months after the date of the test;
   9. the right of an employee, on the employee’s request, to explain in a confidential setting, a positive test result; if the employee requests in writing an opportunity to explain the positive test result within 10 working days after the employee is notified of the test result, the employer must provide an opportunity, in a confidential setting, within 72 hours after receiving the employee’s written notice, or before taking adverse employment action;
   10. a statement of the employer’s policy regarding the confidentiality of the test results.
3. An employer may require the collection and testing of a sample of an employee’s or prospective employee’s urine or breath for any job-related purpose consistent with business necessity and the terms of the employer’s policy, including
   1. investigation of possible individual employee impairment;
   2. investigation of accidents in the workplace; an employee may be required to undergo drug testing or alcohol impairment testing for an accident if the test is taken as soon as practicable after an accident and the test is administered to employees who the employer reasonably believes may have contributed to the accident;
   3. maintenance of safety for employees, customers, clients, or the public at large;
   4. maintenance of productivity, the quality of products or services, or security of property or information;
   5. reasonable suspicion that an employee may be affected by the use of drugs or alcohol and that the use may adversely affect the job performance or the work environment.
4. In addition to tests required under (c) of this section, an employer may require employees or groups of employees to undergo drug testing on a random or chance basis.
5. If an employer institutes a policy of drug testing or alcohol impairment testing under AS 23.10.600 — 23.10.699 , the policy must identify which employees or positions are subject to testing. An employer must test all or part of the work force based on consideration of safety for employees, customers, clients, or the public at large. An employer may not initiate a testing program under AS 23.10.600 — 23.10.699 until at least 30 days after the employer notifies employees of the employer’s intent to implement the program and makes written copies of the policy available as required by (a) of this section.
6. The provisions of AS 23.10.600 — 23.10.699 may not be construed to discourage, restrict, limit, prohibit, or require on-site drug testing or alcohol impairment testing.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.630. Collection of samples.

1. An employer may test an employee for the presence of drugs or for alcohol impairment. An employer may test a prospective employee for the presence of drugs.
2. In order to test reliably, an employer may require an employee or prospective employee to provide a sample of the individual’s urine or breath and to present reliable individual identification to the person collecting the sample. Collection of the sample must conform to the requirements of AS 23.10.600 — 23.10.699 . The employer may designate the type of sample to be used for testing.
3. An employer shall normally schedule a drug test or an alcohol impairment test of employees during, or immediately before or after, a regular work period. Alcohol impairment or drug testing required by an employer is considered to be work time for the purposes of compensation and benefits for current employees. Sample collection shall be performed in a manner that guarantees the individual’s privacy to the maximum extent consistent with ensuring that the sample is not contaminated, adulterated, or misidentified.
4. An employer shall pay the entire actual costs for drug testing and alcohol impairment testing required of employees and prospective employees. An employer shall also pay reasonable transportation costs to an employee if the required test is conducted at a location other than the employee’s normal work site.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.640. Testing procedures.

1. Sample collection and testing for alcohol impairment and drugs under AS 23.10.600 — 23.10.699 shall be performed under reasonable and sanitary conditions. The person collecting samples shall document the sample, including labeling the sample to preclude to the extent reasonable the possibility of misidentification of the person tested in relation to the test result provided, and shall provide the person to be tested with an opportunity to provide medical information that may be relevant to the test, including identifying current or recently used prescription and nonprescription drugs.
2. Sample collection, storage, and transportation to the place of testing shall be performed in a manner reasonably designed to preclude the possibility of sample contamination, adulteration, or misidentification.
3. Sample testing must comply with scientifically accepted analytical methods and procedures. Except for on-site testing under AS 23.10.645 , drug testing shall be conducted at a laboratory approved or certified by the Substance Abuse and Mental Health Services Administration or the College of American Pathologists, American Association of Clinical Chemists.
4. Drug testing, including on-site drug testing, must include confirmation of a positive drug test result. The confirmation must be by use of a different analytical process than was used in the initial drug screen. The second or confirmatory drug test shall be a gas chromatography mass spectrometry. An employer may not rely on a positive drug test unless the confirmatory drug test results have been reviewed by a licensed physician or doctor of osteopathy. The physician or osteopath shall
   1. contact the employee within 48 hours and offer an opportunity to discuss the confirming test result;
   2. interpret and evaluate the positive drug test results for legal use; and
   3. report test results that have been caused by prescription medication as negative.
5. A drug test conducted under this section or in an on-site test under AS 23.10.645 for a drug for which the United States Department of Health and Human Services has established a cutoff level shall be considered to have yielded a positive result if the test establishes the presence of the drug at levels equal to or greater than that cutoff level. For a drug for which the United States Department of Health and Human Services has not established a cutoff level, the employer shall, in the written policy under AS 23.10.620 , inform employees of the cutoff level that the employer will use to establish the presence of the drug.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.645. On-site testing.

1. An employer may include on-site drug and alcohol tests of employees and prospective employees as part of the employer’s drug and alcohol testing policy under AS 23.10.600 — 23.10.699 . In on-site testing under this section, an employer may only use products approved by the Food and Drug Administration for employee testing and shall use the products in accordance with the manufacturer’s instructions. On-site testing under this section may only be conducted by a test administrator who is certified under AS 23.10.650(b) .
2. In on-site testing under this section, the specimen to be tested must be kept in sight of the employee or applicant who is the subject of the test. The test administrator shall
   1. conduct the test in a manner that allows the subject of the test to observe the testing procedure and the results; in the case of a sight-impaired employee, the employee may request the presence of an observer; however, the test administrator is not required to delay collection of the sample or administration of the test because of the sight-impaired employee’s request;
   2. complete the sample documentation required under AS 23.10.640(a) ;
   3. prepare a written record of the results of the on-site test.
3. An employer may not take permanent employment action against an employee based on an unconfirmed, screen positive on-site test result. If an employer takes temporary adverse employment action based on an on-site test result, the employer shall restore the employee’s wages and benefits if the confirmatory test result is negative or if the employee demonstrates that the positive test result was caused by drugs taken in accordance with a valid prescription of the employee or by lawful nonprescription drugs.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.650. Training of test administrators.

1. Each employer shall ensure that at least one designated employee receives at least 60 minutes of training on alcohol misuse and at least an additional 60 minutes of training on the use of controlled substances. The training will be used by the designee to determine whether reasonable suspicion exists to require an employee to undergo testing under AS 23.10.630 .
2. If an employer administers on-site drug or alcohol tests to test employees or prospective employees under AS 23.10.645 , the employer shall ensure that each person who will be administering the on-site test receives training and meets the qualifications of this subsection. An on-site test administrator must
   1. have been trained by the manufacturer of the test or the manufacturer’s representative on the proper procedure for administering the test and accurate evaluation of on-site test results; training must be conducted in person by a trainer from the manufacturer or the manufacturer’s representative;
   2. be certified in writing by the manufacturer or the manufacturer’s representative as competent to administer and evaluate the on-site test;
   3. have been trained to recognize adulteration of a sample to be used in on-site testing; and
   4. sign a statement that clearly states that the on-site test administrator will hold all information related to any phase of a drug test confidential.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.655. Disciplinary procedures.

1. An employer may take adverse employment action based on
   1. a positive drug test or alcohol impairment test result that indicates a violation of the employer’s written policy;
   2. the refusal of an employee or prospective employee to provide a drug testing sample; or
   3. the refusal of an employee to provide an alcohol impairment testing sample.
2. Adverse employment action under (a) of this section may include
   1. a requirement that the employee enroll in an employer provided or employer approved rehabilitation, treatment, or counseling program; the program may include additional drug testing and alcohol impairment testing; the employer may require participation in the program as a condition of employment; costs of participating in the program may or may not be covered by the employer’s health plan or policies;
   2. suspension of the employee, with or without pay, for a designated period of time;
   3. termination of employment;
   4. in case of drug testing, refusal to hire a prospective employee; and
   5. other adverse employment action.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.660. Confidentiality of results; access to records.

A communication received by an employer relevant to drug test or alcohol impairment test results and received through the employer’s testing program is a confidential and privileged communication and may not be disclosed except

1. to the tested employee or prospective employee or another person designated in writing by the employee or prospective employee;
2. to individuals designated by an employer to receive and evaluate test results or hear the explanation of the employee or prospective employee; or
3. as ordered by a court or governmental agency.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.670. Effect of mandatory testing obligations.

An employer who is obligated by state or federal requirements to have a drug testing or alcohol impairment testing policy or program shall receive the full benefits of AS 23.10.600 — 23.10.699 even if the required policy or program is not consistent with AS 23.10.600 — 23.10.699 , so long as the employer complies with the state or federal requirements applicable to the employer’s operations.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.10.699. Definitions.

In AS 23.10.600 — 23.10.699 ,

1. “alcohol” means ethanol, isopropanol, or methanol;
2. “drug testing” means testing for evidence of the use of a drug;
3. “drugs” means a substance considered unlawful under AS 11.71 or the metabolite of the substance;
4. “employee” means a person in the service of an employer;
5. “employer” means a person who employs one or more full-time employees under a contract of hire, express or implied, oral or written;
6. “good faith” means reasonable reliance on fact, or that which is held out to be factual, without the intent to deceive or be deceived and without reckless or malicious disregard for the truth;
7. “prospective employee” means a person who has made application to an employer, whether written or oral, to become an employee;
8. “random” means a scientifically valid method that ensures that all covered employees have an equal chance of being selected;
9. “sample” means urine or breath from the person being tested.

History. (§ 1 ch 106 SLA 1997)

Sec. 23.15.010. Administration of vocational rehabilitation.

The commissioner shall administer the vocational rehabilitation program.

History. (§ 37-9-6 ACLA 1949; am § 2 ch 169 SLA 1955; am § 2 ch 144 SLA 1957; am § 1 ch 79 SLA 1960; am § 16 ch 58 SLA 1999)

Administrative Code. —

For plans of service, see 8 AAC 98, art. 1.

For business enterprise program, see 8 AAC 98, art. 2.

Sec. 23.15.020. Powers and duties of commissioner.

1. The commissioner may cooperate with a federal agency, as provided and required by federal law for vocational rehabilitation.
2. The commissioner shall comply with the federal laws and the conditions necessary to secure the full benefit of the federal vocational rehabilitation laws, and shall do all things necessary to entitle the state to receive the benefits of the federal laws.
3. The commissioner may do all the things and adopt the regulations that are necessary to carry out the federal laws and the purposes of AS 23.15.010 — 23.15.210 .

History. (§ 37-9-6 ACLA 1949; am § 2 ch 169 SLA 1955; am § 2 ch 144 SLA 1957; am § 1 ch 79 SLA 1960; am § 17 ch 58 SLA 1999)

Administrative Code. —

For plans of service, see 8 AAC 98, art. 1.

For business enterprise program, see 8 AAC 98, art. 2.

For confidentiality of personal information, see 8 AAC 98, art. 3.

For hearings and appeals, see 8 AAC 98, art. 4.

Sec. 23.15.030. Appointment of administrative officers.

The commissioner may appoint administrative officers and delegate to them the authority necessary to carry out AS 23.15.010 — 23.15.210 .

History. (§ 37-9-6 ACLA 1949; am § 2 ch 169 SLA 1955; am § 2 ch 144 SLA 1957; am § 1 ch 79 SLA 1960; am § 18 ch 58 SLA 1999)

Sec. 23.15.040. Division of vocational rehabilitation established.

The division of vocational rehabilitation is established under the commissioner to carry out AS 23.15.010 — 23.15.210 .

History. (§ 37-9-6 ACLA 1949; am § 2 ch 169 SLA 1955; am § 2 ch 144 SLA 1957; am § 18 ch 208 SLA 1975; am § 19 ch 58 SLA 1999)

Sec. 23.15.050. Director of vocational rehabilitation.

The commissioner shall appoint a director of the division of vocational rehabilitation. The director has the administrative authority delegated by the commissioner and necessary to carry out AS 23.15.010 — 23.15.210 and the regulations and policies adopted by the commissioner.

History. (§ 37-9-6 ACLA 1949; am § 2 ch 144 SLA 1957; am §§ 2, 3 ch 79 SLA 1960; am § 9 ch 96 SLA 1967; am § 19 ch 208 SLA 1975; am § 20 ch 58 SLA 1999)

Sec. 23.15.060. Agreements under Social Security Act.

1. The commissioner may enter into necessary agreements on behalf of the state with the Secretary of Health and Human Services to carry out the provisions of the federal Social Security Act, as amended, and as it is subsequently amended, relating to the making of determinations of disability under Title II and Title XVI of that Act.
2. The Department of Revenue shall act as the custodian of funds paid by the federal government to the state, shall comply with agreements entered into under the Social Security Act, and shall disburse the funds in accordance with instructions from the director of the division of vocational rehabilitation.

History. (§ 37-9-6 ACLA 1949; am § 2 ch 169 SLA 1955; am § 2 ch 144 SLA 1957; am § 20 ch 208 SLA 1975; am § 1 ch 5 SLA 1978; am § 21 ch 58 SLA 1999)

Cross references. —

For federal law relating to eligibility under Titles II and XVI of the Social Security Act, see 42 U.S.C. 422 and 1382.

Sec. 23.15.070. Personnel policies [Repealed, § 84 ch 58 SLA 1999.]

Sec. 23.15.080. Eligibility for vocational rehabilitation service.

1. Vocational rehabilitation service shall be provided directly or through a public or private instrumentality to an individual with a disability who
   1. is a resident of the state at the time of application for the service and whose vocational rehabilitation the agency determines after full investigation can be satisfactorily achieved; or
   2. is eligible for the service under an agreement with another state or with the federal government.
2. In determining the types and extent of vocational rehabilitation services to be provided to an individual with a disability, the agency shall take into consideration any similar benefits that may be available to the individual under other programs. However, the agency may not take other benefits into consideration when doing so would significantly delay the provision of needed services to the individual with a disability. The agency need not take other benefits into consideration when they are for
   1. diagnostic and related services, including transportation and subsistence in connection with those services;
   2. counseling, guidance, and referral;
   3. training, including personal and vocational adjustment training, and necessary training materials;
   4. services to members of families of individuals with disabilities;
   5. job placement; and
   6. services necessary to assist individuals with disabilities to maintain suitable employment.

History. (§ 37-9-7(1) ACLA 1949; am § 3 ch 144 SLA 1957; am § 2 ch 5 SLA 1978; am § 4 ch 25 SLA 2006)

Administrative Code. —

For hearings and appeals, see 8 AAC 98, art. 4.

Sec. 23.15.090. Priority as to eligibility.

If vocational rehabilitation service cannot be provided for all eligible individuals with disabilities who apply, the agency shall provide by regulation for determining the order to be followed in selecting those to whom the services will be provided.

History. (§ 37-9-7(2) ACLA 1949; am § 3 ch 144 SLA 1957; am § 5 ch 25 SLA 2006)

Administrative Code. —

For order of selection for vocational rehabilitation services, see 8 AAC 98, art. 5.

Effect of amendments. —

The 2006 amendment, effective May 10, 2006, substituted “individuals with disabilities” for “handicapped individuals.”

Sec. 23.15.095. Gainful employment of individuals with disabilities.

1. When providing vocational training, vocational rehabilitation, or employment placement of an individual with a disability, the agency’s primary objective and preferred outcome is to help the individual become gainfully employed in an integrated workplace where individuals with disabilities work with and alongside of individuals without disabilities.
2. By December 31 of each year, the commissioner shall provide to the Alaska Mental Health Trust Authority established by AS 47.30.011 a report on the agency’s progress toward the objective under (a) of this section.
3. In this section, “gainfully employed” means employed full time or part time for compensation that is
   1. at or above the minimum wage; and
   2. not less than the compensation paid by the employer for the same or similar work performed by an individual who is not disabled.

History. (§ 3 ch 19 SLA 2014)

Effective dates. —

Section 3, ch. 19, SLA 2014, which enacted this section, took effect on August 27, 2014.

Sec. 23.15.100. Powers and duties; vending facilities.

1. In carrying out AS 23.15.010 — 23.15.210 , the agency shall
   1. take the action it considers necessary or appropriate to carry out the purposes of AS 23.15.010 — 23.15.210 and adopt regulations in conformity with these purposes;
   2. determine the eligibility of applicants for vocational rehabilitation service;
   3. submit to the governor annual reports of activities and expenditures and, before each regular session of the legislature, estimates of sums required for carrying out AS 23.15.010 — 23.15.210 and estimates of the amounts to be made available for this purpose from all sources;
   4. cooperate with public and private departments, agencies, and institutions in providing for the vocational rehabilitation of individuals with disabilities, studying the problems involved in providing this rehabilitation, and establishing, developing, and providing, in conformity with the purposes of AS 23.15.010 — 23.15.210, the programs, facilities, and services that may be necessary or desirable;
   5. survey the potential for providing vending facilities on public property and, when feasible, establish vending facilities operated by blind persons and persons with severe disabilities on public property;
   6. license blind persons and persons with severe disabilities in accordance with AS 23.15.133 for the operation of vending facilities on public property, with blind persons having first priority for operation of the vending facilities;
   7. provide the training and supervision necessary to enable blind persons and persons with severe disabilities to operate vending facilities;
   8. provide the equipment and initial stock necessary to enable blind persons and persons with severe disabilities to operate vending facilities.
2. In carrying out AS 23.15.010 — 23.15.210 , the agency may
   1. enter into agreements with other states to provide for the vocational rehabilitation of residents of the states concerned;
   2. establish and operate rehabilitation facilities and workshops and make grants to public and other nonprofit organizations for these purposes;
   3. supervise the operation of vending stands and other small businesses established under AS 23.15.010 — 23.15.210 to be conducted by individuals with severe disabilities;
   4. make studies, investigations, demonstrations, and reports, and provide training and instruction, including the establishment and maintenance of the research fellowships and traineeships with the stipends and allowances that are considered necessary, in matters relating to vocational rehabilitation; and
   5. adopt regulations necessary for carrying out the provisions of AS 23.15.010 — 23.15.210.

History. (§ 37-9-8(1) (2) ACLA 1949; am § 4 ch 144 SLA 1957; am § 1 ch 75 SLA 1976; am §§ 1, 10 ch 69 SLA 1982; am § 6 ch 25 SLA 2006)

Cross references. —

For present law covering the subject matter of former (b)(5) of this section, see AS 23.15.133 .

Administrative Code. —

For business enterprise program, see 8 AAC 98, art. 2.

For confidentiality of personal information, see 8 AAC 98, art. 3.

For hearings and appeals, see 8 AAC 98, art. 4.

For order of selection for vocational rehabilitation services, see 8 AAC 98, art. 5.

Sec. 23.15.110. Extension of services outside state.

Vocational rehabilitation service may be extended to the continental United States to all individuals eligible under AS 23.15.010 — 23.15.210 . The director may place professional or clerical personnel or both inside the continental United States to carry out the purposes of AS 23.15.010 — 23.15.210 .

History. (§ 37-9-8(3) ACLA 1949; am § 4 ch 144 SLA 1957; am § 22 ch 208 SLA 1975)

Sec. 23.15.120. Cooperation with federal government.

1. The agency shall cooperate with the federal government in carrying out the purposes of federal laws pertaining to vocational rehabilitation, including the licensing of blind persons to operate vending stands on federal property, and may adopt the methods of administration that are found by the federal government to be necessary for the proper and efficient operation of agreements or plans for vocational rehabilitation. The agency may comply with the conditions that are necessary to obtain the full benefits of the federal laws for the state and its residents.
2. Upon designation by the governor, the agency may perform functions and services for the federal government relating to individuals under a physical or mental disability, in addition to those provided in (a) of this section.

History. (§ 37-9-9 ACLA 1949; am § 5 ch 144 SLA 1957)

Administrative Code. —

For business enterprise program, see 8 AAC 98, art. 2.

For confidentiality of personal information, see 8 AAC 98, art. 3.

Sec. 23.15.125. Assistive technology loan guarantee and interest subsidy program.

1. An assistive technology loan guarantee fund is established in the agency. The fund consists of money appropriated to it. The agency may solicit and accept available public and private money for distribution from the fund.
2. Subject to (c) and (d) of this section, the agency may use money in the fund established under this section to guarantee 90 percent of the principal amount of a loan or to subsidize the interest rate of a loan guaranteed by the agency for appropriate assistive technology that is best suited for enabling a person with a disability to
   1. obtain or maintain employment; or
   2. live more independently.
3. The agency may guarantee a loan or subsidize the interest rate of a loan guaranteed under this section if
   1. the loan is made to a person with a disability or a member of the person’s family to obtain assistive technology for the person with a disability within the limitations of (b) of this section;
   2. the loan is originated and serviced by a state or federally chartered financial institution located in the state;
   3. before a loan guarantee or subsidy is requested from a lending institution, the agency determines that the person requesting the loan guarantee or subsidy is not able to obtain the needed assistive technology from a less costly source;
   4. the lending institution determines that the person or the family of a child reasonably can be expected to repay the loan given their expected income or other resources; and
   5. for a loan to modify a vehicle to provide transportation for a person with a disability, the applicant has been steadily employed for the 90 days immediately preceding the date of the loan application.
4. The director shall establish an assistive technology loan committee within the agency. The committee shall consist of the director, or the director’s designee, a representative of a financial institution who is experienced with consumer loans, and at least one but not more than three persons with disabilities. The committee shall
   1. establish guidelines for providing loans under this section, including guidelines relating to the maximum amounts and duration of loans and guidelines to ensure that persons with disabilities who live in rural or remote areas of the state have adequate access to loans under this section;
   2. annually establish the percentage of money in the fund that may be used for subsidizing the interest rates on loans guaranteed under this section; and
   3. make reports and recommendations to the legislature on the operation of the loan program.
5. In this section,
   1. “assistive technology” means durable equipment, adaptive aids, and assistive devices;
   2. “person with a disability” means an individual having a physical or mental disability.

History. (§ 1 ch 65 SLA 1995; am § 7 ch 25 SLA 2006)

Sec. 23.15.130. Vocational rehabilitation small business enterprise revolving fund.

1. There is created in the state treasury a revolving fund designated as the vocational rehabilitation small business enterprise revolving fund.  The fund shall be administered by the director.
2. Receipts from the net proceeds of vending facilities on public property, other than vending facilities operated by a licensee, shall be paid into the fund.
3. The commissioner of administration shall separately account for receipts under (b) of this section that are paid into the vocational rehabilitation small business enterprise revolving fund.  The annual estimated receipts of the fund may be used by the legislature to make appropriations to the department to aid licensees in operating vending machine facilities.
4. In this section “net proceeds” means the gross receipts from operating a vending facility less the costs of operation and a fair return to the operator, to be determined by the agency.

History. (ACLA 1949, § 37-9-10, as enacted by § 6 ch 144 SLA 1957; am § 3 ch 75 SLA 1976; am § 2 ch 69 SLA 1982; am § 45 ch 138 SLA 1986)

Sec. 23.15.132. Vending facilities.

1. A vending facility may not be established on public property that is under the jurisdiction of the state except as authorized by the commissioner.
2. A vending facility authorized by the commissioner shall be selected and located after consulting with the persons responsible for the maintenance and operation of the property to be served by the vending facility. A contract for the operation of the vending facility by a licensee shall be executed by the agency and must contain provisions ensuring that the licensee shall charge reasonable prices and that the vending facility shall provide high quality merchandise.

History. (§ 3 ch 69 SLA 1982; am § 32 ch 40 SLA 2008)

Opinions of attorney general. —

A coffee/pop fund operated by state employees to purchase coffee and soda pop for themselves is not a “vending facility” within the meaning of this section. April 12, 1988 Op. Att’y Gen.

Sec. 23.15.133. Vendors’ licenses.

1. The agency shall issue a license for the operation of a vending facility on public property to a blind person or a person with a severe disability who is a resident of the state at the time of application and who qualifies for a license under
   1. 20 U.S.C. 107 — 107f (Randolph-Sheppard Act); or
   2. regulations adopted by the agency providing for licensing of blind persons or persons with severe disabilities.
2. A license issued under this section does not expire. However, a license may be revoked if the agency finds that the licensee is not operating the facility in accordance with regulations adopted by the agency.

History. (§ 3 ch 69 SLA 1982; am § 8 ch 25 SLA 2006)

Administrative Code. —

For business enterprise program, see 8 AAC 98, art. 2.

Sec. 23.15.134. Active participation by licensees with severe disabilities.

The agency shall adopt regulations that ensure the opportunity for active participation by a licensee with severe disabilities in the administration of vending facilities operated by licensees with severe disabilities. The opportunity for active participation provided under this section must be at least as extensive as the opportunity for active participation provided for a blind licensee under AS 23.15.135 .

History. (§ 3 ch 69 SLA 1982; am § 9 ch 25 SLA 2006)

Administrative Code. —

For business enterprise program, see 8 AAC 98, art. 2.

Sec. 23.15.135. Committee of blind vendors.

1. The Committee of Blind Vendors consisting of all blind licensees is established.  The agency shall conduct a biennial election of a president, vice-president, secretary, and treasurer of the committee and may conduct elections to fill vacancies in office at any time.
2. The commissioner shall assure active participation by the Committee of Blind Vendors in administrative, policy, and program development decisions concerning vending facilities operated by blind licensees. The agency shall, with active participation by the Committee of Blind Vendors,
   1. adopt regulations providing for the licensing of blind persons for the operation of vending facilities on public property;
   2. consider and respond to grievances of blind licensees;
   3. develop and administer a statewide system for the transfer and promotion of blind licensees;
   4. develop training and retraining programs for blind licensees and for blind persons interested in obtaining a license to operate a vending facility;
   5. organize meetings and conferences for blind licensees;
   6. adopt regulations necessary to assure that vending facilities operated by blind licensees are administered by the agency in a substantially equivalent manner whether a vending facility is located on state or federal property;
   7. designate public property as appropriate for the location of a vending facility operated by a blind licensee.
3. To ensure the opportunity for active participation in decisions that affect the administration of vending facilities operated by blind licensees the agency shall, before each meeting of the Committee of Blind Vendors, provide the committee with written information on matters to be considered.  The agency shall provide the committee with reasons in writing for decisions and actions of the agency that do not conform to recommendations submitted by the committee.

History. (§ 3 ch 69 SLA 1982; am § 33 ch 40 SLA 2008)

Administrative Code. —

For business enterprise program, see 8 AAC 98, art. 2.

Sec. 23.15.136. Group insurance for certain licensees.

The agency shall purchase group insurance coverage under AS 39.30.090 for licensees holding current operating agreements. The employer share of the insurance premium shall be paid from the vocational rehabilitation small business enterprise revolving fund.

History. (§ 1 ch 38 SLA 1990)

Sec. 23.15.140. Vocational Rehabilitation Fund. [Repealed, § 2 ch 23 SLA 1968.]

Sec. 23.15.150. Custodian of funds.

The Department of Revenue is designated custodian of all vocational rehabilitation funds in the state.

History. (ACLA 1949, § 37-9-12, as enacted by § 6 ch 144 SLA 1957)

Sec. 23.15.160. Gifts.

The commissioner may accept a gift or donation from a public or a private source that is offered unconditionally for carrying out AS 23.15.010 — 23.15.210 . The commissioner may accept a conditional gift if, in the judgment of the agency, the conditions are proper and consistent with AS 23.15.010 — 23.15.210 .

History. (ACLA 1949, § 37-9-13, as enacted by § 6 ch 144 SLA 1957; am § 3 ch 23 SLA 1968; am § 22 ch 58 SLA 1999)

Sec. 23.15.170. Maintenance not assignable.

The right of an individual with a disability to maintenance under AS 23.15.010 — 23.15.210 is not transferable or assignable at law or in equity.

History. (ACLA 1949, § 37-9-14, as amended by § 6 ch 144 SLA 1957; am § 10 ch 25 SLA 2006)

Sec. 23.15.180. Hearings.

1. An individual applying for or receiving vocational rehabilitation who is aggrieved by the action or inaction of the agency is entitled to a fair hearing by the agency, in accordance with regulations.
2. A blind person or a person with a severe disability aggrieved by a decision or action of the agency under AS 23.15.133 — 23.15.135 shall receive a hearing on request in accordance with AS 44.62.330 — 44.62.630 (Administrative Procedure Act). A blind person may also file a complaint in accordance with 20 U.S.C. 107d-1 for arbitration of a grievance.

History. (ACLA 1949, § 37-9-15, as amended by § 6 ch 144 SLA 1957; am § 4 ch 69 SLA 1982; am § 11 ch 25 SLA 2006)

Administrative Code. —

For business enterprise program, see 8 AAC 98, art. 2.

For hearings and appeals, see 8 AAC 98, art. 4.

Sec. 23.15.190. Misuse of lists and records.

Except for purposes directly connected with the administration of the vocational rehabilitation program and in accordance with regulations, a person may not solicit, disclose, receive, or make use of, or authorize, knowingly permit, participate in, or acquiesce in the use of a list of, names of, or information concerning, persons applying for or receiving vocational rehabilitation, directly or indirectly, derived from the records, papers, files, or communications of the state or an agency of the state, or acquired in the course of the performance of official duties. An officer or employee violating this provision is subject to discharge or suspension.

History. (ACLA 1949, § 37-9-16, as amended by § 6 ch 144 SLA 1957)

Administrative Code. —

For confidentiality of personal information, see 8 AAC 98, art. 3.

Sec. 23.15.200. Limitation on political activity.

An officer or employee engaged in the administration of the vocational rehabilitation program may not use official authority to influence or permit the use of the vocational rehabilitation program for the purpose of interfering with an election or affecting the results of an election or for a partisan political purpose. An officer or employee may not solicit or receive, and an officer or employee may not be obliged to contribute or render, a service, assistance, subscription, assessment, or contribution for a political purpose. An officer or employee violating this section is subject to discharge or suspension.

History. (ACLA 1949, § 37-9-17, as amended by § 6 ch 144 SLA 1957)

Sec. 23.15.210. Definitions.

In AS 23.15.010 — 23.15.210 ,

1. “active participation” means a process through which the Committee of Blind Vendors or a licensee is provided the opportunity to exert a major influence in program policies, standards, and procedures affecting the operation of vending facilities, with the commissioner having final responsibility;
2. “agency” means the division of vocational rehabilitation;
3. “blind person” means a person whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or whose visual acuity, if better than 20/200, is accompanied by a limit to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of not greater than 20 degrees; an examination by an ophthalmologist or by an optometrist is necessary before a person is found to be blind;
4. “director” means the director of the division of vocational rehabilitation;
5. “individual having a physical or mental disability” means an individual who has a physical or mental condition that materially limits, contributes to limiting, or, if not corrected, will probably result in limiting the individual’s activities or functioning;
6. “individual with a disability” means an individual having a physical or mental disability that for that individual constitutes or results in a substantial barrier to employment and who can reasonably be expected to benefit in terms of employability from the provision of vocational rehabilitation services;
7. “licensee” means a blind person or a person with a severe disability licensed by the division of vocational rehabilitation under 20 U.S.C. 107 — 107b and 107d — 107f (Randolph-Sheppard Act), AS 23.15.133 , and regulations adopted under federal or state law;
8. “person with a severe disability” means a person who has one or more physical or mental disabilities that seriously limit the person’s functional capacities in terms of regular employment and whose vocational rehabilitation requires multiple vocational rehabilitation services over an extended period of time;
9. “public property” means real or personal property owned or leased by the state or federal government or an agency of the state or federal government;
10. “vending facility” means a vending machine, cafeteria, snack bar, shelter, cart, or counter where food, tobacco, newspapers, periodicals, and other articles are offered for sale to the general public and dispensed automatically or manually whether prepared on or off the premises; and excludes a facility in a hospital, school, or other institution where food or other articles are offered for sale only to patients, inmates, and persons enrolled in or employed by the institution;
11. “vocational rehabilitation service” means goods and services, including diagnostic and related services, necessary to enable an individual with a disability to engage in gainful employment;
12. “workshop” means a rehabilitation facility engaged in a production or service operation that is operated for the primary purpose of providing gainful employment or professional services to persons with disabilities as an interim step in the rehabilitation process for those who cannot readily be absorbed in the competitive labor market or during times when employment opportunities for them in the competitive labor market do not exist.

History. (§ 37-9-5 ACLA 1949; am § 1 ch 169 SLA 1955; am § 1 ch 144 SLA 1957; am § 23 ch 208 SLA 1975; am § 2 ch 75 SLA 1976; am §§ 3-6 ch 5 SLA 1978; am §§ 5-8 ch 69 SLA 1982; am § 84 ch 58 SLA 1999; am § 12 ch 25 SLA 2006; am § 34 ch 40 SLA 2008)

Revisor’s notes. —

This section was reorganized in 1984 to place the defined terms in alphabetical order.

Opinions of attorney general. —

A coffee/pop fund operated by state employees to purchase coffee and soda pop for themselves is not a “vending facility” within the meaning of AS 23.15.132 . April 12, 1988 Op. Att’y Gen.

Sec. 23.15.220. Purpose.

The purpose of AS 23.15.220 — 23.15.320 is to create a State Vocational Rehabilitation Committee for Alaska to carry on a continuing program to promote the employment of people of the state with disabilities by creating statewide interest in the rehabilitation and employment of people with disabilities, and by obtaining and maintaining cooperation with public and private groups and individuals in this field.

History. (§ 1 ch 23 SLA 1960; am § 1 ch 7 SLA 1989; am § 1 ch 57 SLA 2010)

Effect of amendments. —

The 2010 amendment, effective June 10, 2010, substituted “State Vocational Rehabilitation Committee” for “Governor’s Committee on Employment of People with Disabilities”.

Collateral references. —

Accommodation requirement under state legislation forbidding job discrimination on account of handicap. 76 ALR4th 310.

Handicap as job disqualification under state legislation forbidding job discrimination on account of handicap. 78 ALR4th 265.

Damages and other relief under state legislation forbidding job discrimination on account of handicap. 78 ALR4th 435.

What constitutes handicap under state legislation forbidding job discrimination on account of handicap. 82 ALR4th 26, 77 ALR5th 595.

When must specialized testing, training, or other work procedures be provided for benefit of qualified disabled employee or applicant to fulfill employer’s reasonable accommodation requirement. 127 ALR Fed. 559.

Action under Americans with Disabilities Act (42 U.S.C.A. §§ 12101 et seq.), to remedy alleged harassment or hostile work environment. 162 ALR Fed. 603.

Sec. 23.15.230. Appointment of committee.

The governor shall appoint the members of the State Vocational Rehabilitation Committee for staggered terms not exceeding three years. The composition of the committee must be consistent with the requirements of 29 U.S.C. 725 and 3003, as amended. A member may be reappointed, and a vacancy shall be filled by the governor.

History. (§ 2 ch 23 SLA 1960; am § 5 ch 168 SLA 1990; am § 2 ch 57 SLA 2010)

Cross references. —

For transitional provision relating to the continued service of members of the former Governor’s Committee on Employment of People with Disabilities as members of the State Vocational Rehabilitation Committee, as the committee is recomposed under this section, see § 5, ch. 57, SLA 2010, in the 2010 Temporary and Special Acts.

Effect of amendments. —

The 2010 amendment, effective June 10, 2010, rewrote the section.

Sec. 23.15.240. Selection and term of chair.

The members of the committee shall select a chair from among the voting members of the committee, subject to disapproval by the governor. The chair serves for one year or until a successor is selected.

History. (§ 2 ch 23 SLA 1960; am § 2 ch 7 SLA 1989; am § 3 ch 57 SLA 2010)

Effect of amendments. —

The 2010 amendment, effective June 10, 2010, in the section heading substituted “Selection” for “Appointment”, and rewrote the section.

Sec. 23.15.250. Compensation and expenses.

Members of the committee may receive no compensation for services on the committee but are entitled to reimbursement for necessary expenses in accordance with existing law.

History. (§ 2 ch 23 SLA 1960)

Sec. 23.15.260. Meetings.

The committee shall meet four times a year, but, at the request of the governor, special meetings may be called. Meetings may be conducted telephonically.

History. (§ 2 ch 23 SLA 1960; am § 4 ch 57 SLA 2010)

Effect of amendments. —

The 2010 amendment, effective June 10, 2010, substituted “four times a year” for “annually”, and added the second sentence.

Sec. 23.15.270. Cooperation with other committees and agencies.

The committee shall work in close cooperation with local committees and with the President’s Committee on Employment of People with Disabilities to carry out the purpose of AS 23.15.220 — 23.15.320 more effectively, and with state and federal agencies having responsibilities for employment and rehabilitation of people with disabilities.

History. (§ 1 ch 23 SLA 1960; am § 7 ch 5 SLA 1978; am § 3 ch 7 SLA 1989)

Sec. 23.15.280. Appointment of advisors.

The division of vocational rehabilitation, the State Employment Service, the Department of Health and Social Services, and other state agencies that the committee names shall each designate a staff member who shall meet with the committee and act in an advisory capacity. The federal Veterans Employment Service and the United States Department of Veterans Affairs shall each be invited to designate a member of their respective staffs to serve in this capacity with the committee. Agencies of the state shall provide the assistance to the committee that the committee requests to aid it in carrying out the purposes of AS 23.15.220 — 23.15.320 .

History. (§ 3 ch 23 SLA 1960; am § 6 ch 104 SLA 1971; am § 79 ch 21 SLA 2000)

Sec. 23.15.290. Employ people with disabilities week.

Each year the governor shall issue a proclamation designating the first full week in October as Alaska Employ People with Disabilities Week. During this week, appropriate ceremonies shall be held throughout the state for the purpose of enlisting public support for, and interest in the employment of, people with disabilities. The mayors of cities, and heads of government instrumentalities, and leaders of industry and business, educational, and religious groups, labor, veterans, women, farm, scientific and professional, and all other interested organizations and individuals shall be invited to participate.

History. (§ 4 ch 23 SLA 1960; am § 8 ch 5 SLA 1978; am § 4 ch 7 SLA 1989)

Sec. 23.15.300. Manner of handling funds.

Funds to carry out AS 23.15.220 — 23.15.320 shall be appropriated, expended, and accounted for through the same procedures as funds for operation of the Department of Labor and Workforce Development.

History. (§ 5 ch 23 SLA 1960; am § 90 ch 58 SLA 1999)

Revisor’s notes. —

In 1999, in this section, “Department of Labor” was changed to “Department of Labor and Workforce Development” in accordance with § 90, ch. 58, SLA 1999.

Sec. 23.15.310. Gifts.

The committee may accept property by gift, devise, bequest, or otherwise to carry out the purposes of AS 23.15.220 — 23.15.320 .

History. (§ 6 ch 23 SLA 1960)

Sec. 23.15.315. Fees.

1. The committee may charge a fee for attendance at a conference, workshop, or similar event conducted by the committee, based on the estimated cost to the committee of organizing and holding the event.
2. The receipt and expenditure by the committee of fees authorized by this section is subject to AS 23.15.300 .

History. (§ 1 ch 18 SLA 1992)

Legislative history reports. —

For Governor’s transmittal letter in connection with the enactment of this section by § 1, ch. 18, SLA 1992 (SB 347), see 1992 Senate Journal 1787.

Sec. 23.15.320. Annual report to governor.

The committee shall annually report its activities during the preceding year to the governor.

History. (§ 7 ch 23 SLA 1960)

Sec. 23.15.330. Exemptions.

AS 23.15.330 — 23.15.520 do not apply to an educational, religious, charitable, fraternal, or benevolent organization that does not charge for services, or to a bona fide labor organization or a government agency.

History. (§ 2 ch 94 SLA 1953)

Sec. 23.15.340. Permit.

In order to operate an employment agency, a person shall obtain a permit from the department. The permit shall be posted in a conspicuous place in the employment agency.

History. (§ 3(1) ch 94 SLA 1953)

Administrative Code. —

For application, bond and permit, see 8 AAC 10, art. 1.

Sec. 23.15.350. Application.

To obtain a permit to operate an employment agency a person shall apply to the department on forms prescribed by the department. The application must include

1. the name and address of the applicant and the street and number of the building or place where the business of the employment agency is to be conducted;
2. the businesses or occupations engaged in by the applicant for at least two years immediately preceding the date of application; and
3. the names and addresses of all persons financially interested in the operation of the agency.

History. (§ 3(2) ch 94 SLA 1953)

Administrative Code. —

For application, bond and permit, see 8 AAC 10, art. 1.

Sec. 23.15.360. Bond.

The department may not issue a permit until the applicant furnishes a bond to the department in the amount and with surety that the department considers necessary. The amount of the bond may not be less than $1,000 nor more than $10,000. The bond shall be conditioned on the applicant’s full compliance with the provisions and requirements imposed by AS 23.15.330 — 23.15.520 and the payment of all judgments recovered against the applicant for violation of AS 23.15.330 — 23.15.520 and any judgment and costs recovered against the applicant by a laborer, worker, or applicant for a position due to wilful misrepresentation or wilful deceit of a laborer or applicant for a position.

History. (§ 3(3) ch 94 SLA 1953)

Administrative Code. —

For application, bond and permit, see 8 AAC 10, art. 1.

Sec. 23.15.370. Investigation of applicant.

Upon application for a permit, the department may make an investigation as to the character and responsibility of the applicant and the premises where the applicant proposes to conduct the business.

History. (§ 3(4) ch 94 SLA 1953)

Administrative Code. —

For application, bond and permit, see 8 AAC 10, art. 1.

Sec. 23.15.380. Refusal of permit.

The department may, after notice and hearing, refuse to grant a permit where there is reasonable ground to believe that the applicant is of unfit moral character or is irresponsible. The department shall grant or refuse an application within 30 days of the date of filing.

History. (§ 3(5) ch 94 SLA 1953)

Administrative Code. —

For application, bond and permit, see 8 AAC 10, art. 1.

Sec. 23.15.390. Term of permit; fees.

The fee for filing an application for a permit is $10. A permit is valid for a term of two years. The biennial fee for the issuance of a permit, including a renewal permit, is $100. All fees shall be deposited in the general fund. In addition to paying this fee, all persons conducting employment agencies shall comply with the provisions of AS 43.70 (Alaska Business License Act).

History. (§ 3(6) ch 94 SLA 1953; am § 51 ch 63 SLA 1993)

Administrative Code. —

For application, bond and permit, see 8 AAC 10, art. 1.

Sec. 23.15.400. Renewal of permit.

Thirty days before the expiration of a permit the holder must apply for renewal of the permit in order to renew the permit. The application for renewal must contain all the information requested in the original application, brought up to date.

History. (§ 3(7) ch 94 SLA 1953)

Administrative Code. —

For application, bond and permit, see 8 AAC 10, art. 1.

Sec. 23.15.410. Revocation or suspension of permit.

1. The department may revoke or suspend a permit if
   1. the permittee or an agent of the permittee has violated or failed to comply with a provision of AS 23.15.330 — 23.15.520 ;
   2. the permittee has stopped being of good moral character.
2. Before revoking or suspending a permit, the department shall notify the holder in writing of the charges and provide the permittee an opportunity to be heard in person or by counsel.

History. (§ 3(8) (9) ch 94 SLA 1953)

Sec. 23.15.420. Limitations on conduct of employment agencies.

The department may not issue a permit to conduct an employment agency

1. in rooms used for living purposes;
2. in connection with a pool hall, bar, or intoxicating liquor dispensary, or recreation center operated for profit;
3. to a person whose permit has been revoked within three years from the date of application;
4. to a person who is financially interested in a travel agency or who in any way benefits financially from the sale of air, steamship, or bus transportation.

History. (§ 4 ch 94 SLA 1953)

Sec. 23.15.430. Agency to maintain register.

An employment agency shall keep a register containing the name and address of each applicant, the date registered, and the amount of fee received.

History. (§ 5(1) ch 94 SLA 1953)

Administrative Code. —

For agency procedures and requirements, see 8 AAC 10, art. 2.

Sec. 23.15.440. Records open to inspection.

All registers, books, records, and other papers kept under AS 23.15.330 — 23.15.520 shall be open to the inspection of the department at all reasonable times. The agency shall furnish a copy of a record or report to the department within 30 days of the request.

History. (§ 5(2) ch 94 SLA 1953)

Administrative Code. —

For agency procedures and requirements, see 8 AAC 10, art. 2.

Sec. 23.15.450. Applicant’s receipt.

An agency shall give to an applicant for employment from whom a fee is to be received a receipt. The receipt must contain

1. the name, address, and telephone number of the employment agency;
2. the name of the applicant;
3. the name and address of the person to whom the applicant is sent for employment, and the address to which the applicant is to report for work;
4. the amount of the fee charged and collected from the applicant;
5. the kind of work to be performed, the wages or salary, and other conditions of employment.

History. (§ 5(3) ch 94 SLA 1953)

Administrative Code. —

For agency procedures and requirements, see 8 AAC 10, art. 2.

Sec. 23.15.460. Schedule of fees.

A person conducting an employment agency shall file a schedule of its fees with the department. The agency may change the fee schedule, but a change is not effective until seven days after it is filed with the department and until it is posted for not less than seven days in a conspicuous place in the agency. The agency shall post a copy of the fee schedule in the agency in a conspicuous place frequented by applicants for help or employment.

History. (§ 5(4) ch 94 SLA 1953)

Administrative Code. —

For agency procedures and requirements, see 8 AAC 10, art. 2.

For fee schedule, see 8 AAC 10, art. 3.

Collateral references. —

Construction and operation of fee payment provisions of employment agency contract. 61 ALR3d 375.

Sec. 23.15.470. Maximum fees.

After notice and hearing the department shall set a maximum schedule of fees. The department may review the schedule every two years after giving notice and hearing.

History. (§ 5(5) ch 94 SLA 1953)

Administrative Code. —

For agency procedures and requirements, see 8 AAC 10, art. 2.

For fee schedule, see 8 AAC 10, art. 3.

Sec. 23.15.480. Return of fees.

If the applicant paying a cash fee fails to obtain employment, the agency shall, upon demand, return the amount of the fee to the applicant within 48 hours.

History. (§ 5(6) ch 94 SLA 1953)

Administrative Code. —

For agency procedures and requirements, see 8 AAC 10, art. 2.

Sec. 23.15.490. Prohibited acts.

An employment agency may not

1. send out an applicant for employment without having a bona fide request from an employer;
2. send a person to an employer for the purpose of assisting or conducting an illegitimate business or practice;
3. place a child in employment in violation of the child labor laws;
4. divide or offer to divide a fee with an employer;
5. make a charge that does not conform with the schedule of fees;
6. falsify a record of the agency;
7. write, publish, or have published false, fraudulent, or misleading information, representation, notice, or advertisement concerning a job opportunity;
8. send an applicant for employment to a place where a strike or lockout exists without informing the applicant of the existence of the strike or lockout.

History. (§ 5(7) ch 94 SLA 1953)

Administrative Code. —

For agency procedures and requirements, see 8 AAC 10, art. 2.

For fee schedule, see 8 AAC 10, art. 3.

Sec. 23.15.500. Department may adopt regulations.

The department may adopt regulations consistent with AS 23.15.330 — 23.15.520 .

History. (§ 5(8) ch 94 SLA 1953)

Administrative Code. —

For application, bond and permit, see 8 AAC 10, art. 1.

For agency procedures and requirements, see 8 AAC 10, art. 2.

For fee schedule, see 8 AAC 10, art. 3.

For prohibited acts, see 8 AAC 10, art. 4.

Sec. 23.15.510. Violations.

A person who wilfully violates any provision of AS 23.15.330 — 23.15.520 is guilty of a misdemeanor, and upon conviction is punishable by a fine of not more than $1,000, or by imprisonment for not more than six months, or by both. However, this section does not apply to the violation of the requirement under AS 23.15.390 to comply with AS 43.70.

History. (§ 6 ch 94 SLA 1953; added by § 1 ch 65 SLA 1955; am § 4 ch 104 SLA 2008)

Sec. 23.15.520. Definitions.

In AS 23.15.330 — 23.15.520 ,

1. “employment agency” or “agency” means a person engaged in the business of furnishing employment or help, or giving information as to where employment or help may be obtained, or furnishing information regarding employment, or displaying an employment sign or bulletin, or, through the medium of a card, circular, or pamphlet, or otherwise offering to obtain employment or help, or a person who offers employment information through communications media, including, but not limited to, radio, television, and newspapers;
2. “fee” means money or other valuable consideration received by a person, paid or promised to be paid for services given to or be given by a person conducting an employment agency.

History. (§ 1 ch 94 SLA 1953; am § 1 ch 197 SLA 1970; am § 38 ch 168 SLA 1990)

Administrative Code. —

For agency procedures and requirements, see 8 AAC 10, art. 2.

Sec. 23.15.550. Alaska Workforce Investment Board.

1. The Alaska Workforce Investment Board is established in the department. The board consists of the following voting members, not to exceed 26:
   1. the lieutenant governor or the lieutenant governor’s designee;
   2. the commissioners of commerce, community, and economic development, education and early development, health and social services, and labor and workforce development, or each respective commissioner’s designee;
   3. one representative from the University of Alaska;
   4. four additional representatives of education, with one from local public education, one from secondary vocational education, one from a postsecondary vocational education institution, and one from adult basic education;
   5. four representatives of business and industry;
   6. four representatives of organized labor whom the governor shall appoint from lists of nominees submitted by recognized state labor organizations; the governor may reject a list submitted under this paragraph and request that another list be submitted;
   7. at least one representative from an organization representing employment and training needs of Alaska Natives;
   8. at least one representative of a community-based service organization;
   9. at least one representative who has personal or professional experience with developmental disabilities;
   10. at least one veteran; in this paragraph, “veteran” has the meaning given in AS 43.20.048(f) ;
   11. at least one and up to four additional members of the private sector to ensure a private sector majority and regional and local representation on the board.
2. Additional nonvoting members may be appointed to the board from government or nongovernment entities.
3. A member of the board under (a) of this section may appoint a designee to serve in place of the member. The member shall appoint the designee in writing.

History. (§ 23 ch 58 SLA 1999; am § 3 ch 86 SLA 2002; am § 2 ch 49 SLA 2003; am § 1 ch 33 SLA 2015)

Revisor’s notes. —

In 2004, in (a)(2) of this section, “community and economic development” was changed to “commerce, community, and economic development”, in accordance with § 3, ch. 47, SLA 2004.

Cross references. —

For transitional provisions relating to members of the former Alaska Human Resources Investment Council serving as the members of the Alaska Workforce Investment Board and to the executive director of the former council serving as the executive director of the board under the 2002 amendment of this section, see § 50, ch. 86, SLA 2002, in the 2002 Temporary and Special Acts.

Effect of amendments. —

The 2015 amendment, effective August 31, 2015, in (a), added (a)(10), redesignated existing (a)(10) as (a)(11) and in (a)(11) substituted “four” for “five”; made related changes.

Sec. 23.15.555. Appointment and term of members.

1. Members of the Alaska Workforce Investment Board other than those listed in AS 23.15.550(a) (1) and (2) are appointed by the governor and serve at the pleasure of the governor. The governor may appoint one person to fill two or more of the places listed in AS 23.15.550(a) if the person is qualified in all of the areas the person represents. A member appointed to fill more than one place under this subsection is entitled to only one vote and may appoint only one designee to replace the member in the event the member is unable to attend a meeting.
2. The voting members of the board other than those listed in AS 23.15.550(a)(1) and (2) serve for staggered four-year terms and may serve until a successor is appointed. An appointment to fill a vacancy shall be made in the same manner as the original appointment and for the balance of the unexpired term.
3. The governor shall ensure that individuals appointed to the board have sufficient expertise to effectively carry out the duties of the board. Expertise of the board includes, where appropriate, knowledge of the long-term needs of individuals preparing to enter the work force; the needs of local, state, and regional labor markets; and the methods for evaluating the effectiveness of vocational training programs in serving varying populations.

History. (§ 23 ch 58 SLA 1999; am § 4 ch 86 SLA 2002)

Sec. 23.15.560. Compensation.

Members of the Alaska Workforce Investment Board listed in or appointed under AS 23.15.550(a) , including a designee of a member attending in place of the member, serve without compensation but are entitled to per diem and travel expenses authorized by law for boards and commissions under AS 39.20.180 . Nonvoting members of the board appointed under AS 23.15.550(b) serve without compensation and are not entitled to per diem and travel expenses. A commissioner appointed under AS 23.15.550(a) (2) or the commissioner’s designee is entitled to per diem and travel expenses as a state employee.

History. (§ 23 ch 58 SLA 1999; am § 5 ch 86 SLA 2002)

Sec. 23.15.565. Officers.

The Alaska Workforce Investment Board shall elect a chair and a vice-chair from among the members listed in or appointed under AS 23.15.550(a)(5) . The chair and vice-chair serve in their positions at the pleasure of the board.

History. (§ 23 ch 58 SLA 1999; am § 6 ch 86 SLA 2002)

Sec. 23.15.570. Meetings, quorum, and committees.

1. The Alaska Workforce Investment Board shall meet not more than three times in a calendar year at the call of the chair to conduct its business. A majority of the members listed in or appointed to the board under AS 23.15.550(a) constitutes a quorum.
2. The board shall establish an executive committee and four permanent standing committees as described in (c) — (g) of this section. The chair of a permanent standing committee must be from the private sector. The board may establish additional standing committees and special committees or subcommittees, not necessarily consisting of board members, to advise and assist the board in carrying out its functions assigned by federal or state statute. The permanent standing committees are
   1. the assessment and evaluation committee;
   2. the policy and planning committee;
   3. the employment and placement committee; and
   4. the workforce readiness committee.
3. The executive committee consists of the chair and vice-chair of the board, the immediate past chair of the board, and the chairs of the four standing committees described in (d) — (g) of this section. The executive committee has the duties and may exercise the powers of the council between meetings of the board. The executive committee shall
   1. report to the board in a timely fashion on actions taken on behalf of the board; and
   2. supervise the affairs of the board between regular meetings of the board.
4. The assessment and evaluation committee shall
   1. assess and evaluate programs, initiatives, and the delivery of services to help to ensure equitable distribution of quality education, training, and employment services statewide, especially to rural areas and to programs serving economically disadvantaged citizens;
   2. call for and monitor the workforce development system for increased accountability in performance and continuous quality improvement along the goals and strategies of the board’s overall statewide strategic plan for workforce development;
   3. use evaluation and performance measures to gauge customer satisfaction within the workforce development system; and
   4. perform other duties assigned by the board.
5. The policy and planning committee shall
   1. build policies regarding day-to-day operations and long-term responsibilities of the board;
   2. work to increase awareness of the board and its mission throughout the state;
   3. work with all other committees on a statewide strategic plan for workforce development; and
   4. perform other duties assigned by the board.
6. The employment and placement committee shall
   1. ensure the statewide strategic plan for workforce development addresses
      1. customer needs at the local level;
      2. moving welfare recipients into the workforce;
      3. promoting the hiring of state residents in jobs that have traditionally been filled by out-of-state workers;
      4. tailoring employment and training programs to suit state business, industry, and economic development needs;
   2. monitor the coordination of service delivery to promote efficiency and to prevent overlap of services among programs; and
   3. perform other duties assigned by the board.
7. The workforce readiness committee shall
   1. provide oversight for training, education, and employment programs to ensure the programs are delivering education and training that is relevant to local market needs and the career goals of state residents;
   2. build partnerships between employers and quality workforce training programs;
   3. work to connect the state public and private education systems with business, government, and labor to ensure that state residents are receiving workforce readiness skills throughout the education process; and
   4. perform other duties assigned by the board.

History. (§ 23 ch 58 SLA 1999; am § 7 ch 86 SLA 2002)

Legislative history reports. —

For governor’s transmittal letter on ch. 86, SLA 2002 (HCS CSSB 252(FIN)), see 2002 Senate Journal 2003 — 2004.

Sec. 23.15.575. Board as state planning entity.

The Alaska Workforce Investment Board shall act as the lead state planning and coordinating entity for state human resource programs administered under

1. 29 U.S.C. 2801 — 2945 (Workforce Investment Act of 1998);
2. 20 U.S.C. 2301 — 2471 (Carl D. Perkins Vocational and Applied Technology Education Act);
3. 29 U.S.C. 49 — 49l-1 (Wagner — Peyser Act);
4. federal law for work programs for needy families with children under the Social Security Act;
5. the employment program established under 7 U.S.C. 2015(d)(4) (Food Stamp Act of 1977);
6. all federal programs designated as successors to the programs listed in (1) — (5) of this section; and
7. all state laws involving employment training, vocational education, and workforce development.

History. (§ 23 ch 58 SLA 1999; am § 8 ch 86 SLA 2002)

Sec. 23.15.580. Functions of the board.

1. As the lead state planning and coordinating entity, the Alaska Workforce Investment Board has responsibility, to the extent authorized by federal and state law, for planning and coordinating federal, state, and local efforts in human resource programs in this state related to employment training, including the work activities of the Alaska temporary assistance program under AS 47.27.
2. The board shall
   1. facilitate the development of statewide policy for a coordinated and effective employment training and education system in this state;
   2. identify the human resource investment needs in the state and develop a plan to meet those needs;
   3. review the provision of services and the use of money and resources by the human resource programs listed in AS 23.15.575 ;
   4. assume the duties and functions of the state boards described under the laws relating to the federal human resource programs listed in AS 23.15.575 ;
   5. advise the governor, state and local agencies, the University of Alaska, and other training entities on the development of state and local standards and measures relating to applicable human resource programs;
   6. submit, to the governor and the legislature, a biennial strategic plan to accomplish the goals developed to meet human resource investment needs;
   7. monitor for the implementation and evaluate the effectiveness of the strategic plan developed by the board;
   8. adopt regulations that set standards for the percentage of program expenses that may be used for administrative costs; the regulations must clearly identify and distinguish between program expenses that may be included in administrative costs and those that may not be included in administrative costs; the percentage allowed for administrative costs may not exceed the lesser of 20 percent of program expenses in the prior fiscal year or the amount permitted under the requirements of a federal program, if applicable;
   9. report annually to the legislature, by the 30th day of the regular legislative session, on the performance and evaluation of training programs in the state subject to review under (f) of this section;
   10. identify ways for agencies operating programs subject to oversight by the board to share resources, instructors, and curricula through collaboration with other public and private entities to increase training opportunities and reduce costs;
   11. adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out the purposes of AS 23.15.550 — 23.15.585 ; and
   12. perform duties assigned in AS 23.15.620 — 23.15.660 for the state training and employment program.
3. The board may receive money designated for human resource programs and may disburse money, including grants, to human resource projects in accordance with AS 37.07 (Executive Budget Act). The board may enter into partnership agreements through appropriate administrative agencies with private industry training entities within the state in order to facilitate the coordination of training opportunities.
4. The board shall provide oversight for the planning and coordination of employment-related education training programs operated by the state or operated under contract with the state that are described in (f) of this section. The board shall require a training program listed in (f) of this section to meet the requirements of this subsection. The board shall, by regulation, establish appropriate penalties for programs that fail to meet the requirements of this subsection. The board may recommend to the legislature changes to enhance the effectiveness of the training programs it oversees under this section. A training program described in (f) of this section funded with money appropriated by the legislature must
   1. meet the standards adopted by the board concerning the percentage of a grant that may be spent on administrative costs;
   2. be operated by an institution that holds a valid authorization to operate issued under AS 14.48 by the Alaska Commission on Postsecondary Education if the program is a postsecondary educational program operated by a postsecondary educational institution subject to regulation under AS 14.48;
   3. provide to the Department of Labor and Workforce Development the information required by the department for the preparation of the statistical information necessary for the board to evaluate programs by the standards set out in (e) of this section.
5. The board shall develop standards that encourage agencies to contract for training programs that meet local demands and maximize the use of resources. The board shall adopt standards for the evaluation of training programs listed in (f) of this section with regard to the following:
   1. the percentage of former participants who have a job one year after leaving the training program;
   2. the median wage of former participants seven to 12 months after leaving the program;
   3. the percentage of former participants who were employed after leaving the training program who received training under the program that was related to their jobs or somewhat related to their jobs seven to 12 months after leaving the training program;
   4. the percentage of former participants of a training program who indicate that they were satisfied with or somewhat satisfied with the overall quality of the training program;
   5. the percentage of employers who indicate that they were satisfied with the services received through the workforce development system.
6. The following training programs are subject to the provisions of (d) and (e) of this section:
   1. in the Department of Labor and Workforce Development or operated by the department:
      1. programs under 29 U.S.C. 2801 — 2945 (Workforce Investment Act of 1998), assisting communities in moving toward a self-sustainable economy and providing training;
      2. the state training and employment program under AS 23.15.620 — 23.15.660 ;
      3. employment-related adult basic education;
      4. employment training services operated as part of the Alaska temporary assistance program (ATAP);
      5. unemployment insurance grants provided under the federal training relocation assistance program;
      6. Alaska works programs, assisting with the welfare-to-work program;
      7. Kotzebue Technical Center;
      8. Alaska Vocational Technical Center;
   2. in the Department of Education and Early Development or operated by the department, the non-public-school portions of the
      1. vocational education and technical preparation program; and
      2. Alaska Career Information System.
7. The board shall assess the programs listed in this subsection and make recommendations to the legislature in its report required under (b)(9) of this section about whether to include one or more of these programs under the requirements of (f) of this section:
   1. in the Department of Commerce, Community, and Economic Development or operated by the department:
      1. local government assistance training and development, including the rural utility business advisory program;
      2. energy operations, providing training in management and administration of electric utilities and bulk fuel storage systems;
   2. in the Department of Corrections:
      1. Correctional Academy, training individuals applying for a correctional officer position;
      2. inmate programs, providing vocational technical training and education courses for inmates preparing to be released from a correctional facility;
      3. employment of prison inmates, providing inmates with jobs while they are incarcerated;
   3. in the Department of Environmental Conservation:
      1. remote maintenance worker program, providing training and technical assistance to communities to keep drinking water and sewage disposal systems running, and providing on-the-job training to local operators;
      2. water and wastewater operator training and assistance;
      3. federal drinking water operator training and certification;
   4. in the Department of Military and Veterans’ Affairs: educational benefits for members of the Alaska National Guard and the Alaska Naval Militia;
   5. in the Department of Public Safety:
      1. fire service training to maintain emergency training skills for existing firefighter staff and volunteers and individuals interested in becoming firefighters;
      2. Public Safety Training Academy, training trooper recruits;
   6. in the Department of Transportation and Public Facilities:
      1. engineer-in-training program, providing on-the-job training for apprentice engineers to enable them to gain the experience necessary to be certified;
      2. statewide transportation improvement program, offered by the United States National Highway Institute;
      3. local technical assistance program, transferring technical expertise to local governments;
      4. Native technical assistance program, transferring technical expertise to Native governments;
      5. border technology exchange program, to coordinate highway issues with the Yukon Territory;
   7. in the Department of Labor and Workforce Development: vocational rehabilitation client services and special work projects, employment services, including job development, assisting individuals in finding employment, and assisting employed individuals in finding other employment.
8. The University of Alaska shall evaluate the performance of its training programs using the standards set out in (e) of this section and shall provide a report on the results to the board for inclusion in the board’s annual report to the legislature.
9. The board shall review each program listed in (f) of this section to determine whether it is in compliance with the standards set out in (d) and (e) of this section. If the board finds that a program has failed to comply with the standards set out in (d) and (e) of this section, it shall notify the program director of the failure. If the program director fails to improve the performance of the program within a reasonable time, the board shall notify the governor and the Legislative Budget and Audit Committee that the program is out of compliance. A contract entered into by a state agency relating to a training program set out in (f) of this section must contain terms consistent with this section.
10. A department that operates or contracts for a training program listed in (f) of this section shall pay to the board a management assessment fee not to exceed .75 percent of the program’s annual operating budget. The total amount received as management assessment fees may not exceed the board’s authorized budget for the fiscal year. The board shall, by regulation, establish a method to determine annually the amount of the management assessment fee. If the amount the board expects to collect under this subsection exceeds the authorized budget of the board, the board shall reduce the percentages set out in this subsection so that the total amount of the fees collected approximately equals the authorized budget of the board for the fiscal year. The board shall adopt regulations under AS 44.62 (Administrative Procedure Act) necessary to administer this subsection.
11. Upon the enactment of a new federal or state program relating to work force development, the board shall
    1. advise the governor and the legislature on whether the board should provide oversight for the new program under this section; and
    2. make recommendations necessary to streamline and coordinate state efforts to meet the guidelines of the new program.
12. For purposes of this section, “program”
    1. does not refer to the overall activities of an individual institution or individual fields of study or courses that are not associated with programs for which the board has oversight responsibility;
    2. may include a certificate or associate degree course or a course that is not for credit, whether it is offered by a public or private institute or contracted for by the private sector, so long as it is related to employment.

History. (§ 23 ch 58 SLA 1999; am § 9 ch 86 SLA 2002; am § 3 ch 49 SLA 2003; am § 1 ch 58 SLA 2006; am §§ 1, 2 ch 36 SLA 2009)

Revisor’s notes. —

In 2004, in (g) of this section, “Department of Community and Economic Development” was changed to “Department of Commerce, Community, and Economic Development”, in accordance with § 3, ch. 47, SLA 2004.

Administrative Code. —

For Alaska workforce investment board, see 8 AAC 84.

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, added (b)(12) and made related stylistic changes; and rewrote (f)(1)(B), which read, “state training and employment program (AS 23.15.620 ), providing training and employment services for people who are unemployed or likely to become unemployed, fostering new jobs, and increasing training opportunities for workers severely affected by fluctuations in the state economy or adversely affected by technology advances in the workplace”.

Sec. 23.15.585. Administration.

1. The governor shall appoint the executive director for the Alaska Workforce Investment Board. The department shall provide professional, technical, and administrative staff for the Alaska Workforce Investment Board.
2. Subject to legislative appropriations, and in accordance with AS 37.07 (Executive Budget Act), the board’s budget is funded from programs for which the board is the lead state planning and coordinating entity under AS 23.15.575 .

History. (§ 23 ch 58 SLA 1999; am § 10 ch 86 SLA 2002)

Sec. 23.15.610. Participation in Manpower Development and Training Act. [Repealed, § 1 ch 103 SLA 1968.]

Sec. 23.15.611. Department participation in manpower training programs. [Repealed, § 84 ch 58 SLA 1999.] .

Sec. 23.15.614. Manpower training division. [Repealed, § 84 ch 58 SLA 1999.]

Sec. 23.15.617. Manpower Training Advisory Council. [Repealed, § 2 ch 174 SLA 1975.]

Sec. 23.15.620. State training and employment program.

1. A program is created in the department to provide grants to eligible persons who provide training and employment assistance services. The purpose of the program is to enhance the quality of in-state job training and employment assistance and to make in-state job training and employment assistance more easily available to employers, employees, and future employees. To foster the success of the program, the department shall, to the greatest extent feasible, combine the resources of the program with resources available outside of the program.
2. A person who provides training and employment services may apply for a grant from the program and may use the grant to augment or improve public access to the training and employment services provided, including a registered apprenticeship program under 29 U.S.C. 50.

History. (§ 2 ch 116 SLA 1996; am § 3 ch 36 SLA 2009)

Administrative Code. —

For state training and employment program, see 8 AAC 87.

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, repealed and reenacted the section, which read, “There is created in the department a program to finance and award grants to employment assistance and training entities. Employment assistance and training entities shall give appropriate state agencies full access to accounting records concerning grants received to assure compliance with program standards.”

Sec. 23.15.625. Employment assistance and training program account.

The employment assistance and training program account is established in the general fund. The commissioner of administration shall separately account for money collected under AS 23.15.630 that the department deposits in the general fund. The annual estimated balance in the account may be appropriated by the legislature to the department to implement AS 23.15.620 — 23.15.660 . The legislature may appropriate the lapsing balance of the account to the unemployment compensation fund established in AS 23.20.130 .

History. (§ 2 ch 116 SLA 1996)

Sec. 23.15.630. Special employee unemployment credit and contributions for program.

1. In the manner provided in AS 23.20, the department shall collect from each employee an amount equal to one-tenth of one percent of the wages, as set out in AS 23.20.175 , on which the employee is required to make contributions under AS 23.20.290(d) . The department shall remit to the Department of Revenue, in accordance with AS 37.10.050 , money collected under this subsection.
2. Notwithstanding AS 23.20.290(d) , the department shall credit each employee with an amount equal to the amount collected from the employee under (a) of this section against unemployment contributions owed by the employee under AS 23.20.
3. The department shall assess and collect, under AS 23.20.185 — 23.20.275 , interest and penalties for delinquent reports and payments due under this section. Interest and penalties collected shall be handled in accordance with AS 23.20.130(d) .

History. (§ 2 ch 116 SLA 1996)

Sec. 23.15.635. People to be served.

Within the limits of its grant, an employment assistance and training entity receiving a grant under AS 23.15.620 — 23.15.660 shall provide services set out in AS 23.15.641 to state residents who, immediately before beginning training or receiving benefits under a grant financed by this program,

1. are unemployed and
   1. are receiving unemployment insurance benefits; or
   2. have exhausted the right to unemployment insurance benefits within the past three years; or
2. are employed, but liable to be displaced because of
   1. reductions in overall employment within a business;
   2. elimination of the worker’s current job; or
   3. a change in conditions of employment requiring that, to remain employed, the employee must learn substantially different skills that the employee does not now possess.

History. (§ 2 ch 116 SLA 1996; am § 4 ch 36 SLA 2009)

Revisor’s notes. —

In 2000, “AS 23.15.640 (a)” was substituted for “AS 23.15.640 ” to reflect the 2000 enactment of AS 23.15.640(b)-(d).

Administrative Code. —

For state training and employment program, see 8 AAC 87.

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, in the introductory language substituted “AS 23.15.620 — 23.15.660 ” for “AS 23.15.651 ” and “AS 23.15.641 ” for “AS 23.15.640(a)”; in (2) deleted “within the next six months” following “liable to be displaced”; deleted (3), which related to people who worked in a position covered by AS 23.20 during the past three years and not currently eligible for unemployment benefits for various reasons; made a related stylistic change.

Sec. 23.15.636. Implementation of program.

The department and the board shall jointly implement the program as follows:

1. after review and approval by the board, the department shall adopt regulations under AS 44.62 to implement AS 23.15.620 — 23.15.660 and to regulate the distribution and accounting of grants awarded under the program;
2. the department may use financial resources of the program to cover some or all of the department’s cost of administering the program and may also distribute financial resources of the program through grants, the purchase of services or other contracts, or other mechanisms authorized by state law;
3. the department may enter into interagency agreements with the University of Alaska and other state agencies for the provision of training and employment assistance under the program;
4. after annual review and approval by the board, the department shall annually establish priorities for the provision of training and employment assistance services under AS 23.15.641 to eligible participants under AS 23.15.643 ; in setting priorities, the department shall consider unemployment statistics, unemployment insurance claims, projections of occupational and industrial workforce demand, availability of other training and employment assistance programs, available funding, and other relevant information; when awarding or financing grants under the program, the department may give preference to financing projects and services that train or assist individuals in vocations, businesses, or industries identified in the resident hire report required under AS 36.10.130 as employing a disproportionate percentage of nonresident individuals;
5. the board shall assist in the evaluation of proposals for grants and make recommendations to the department regarding which grants should be awarded by the program; the department may distribute financial resources of the program to the board to pay for some or all of the board’s costs, existing or anticipated, that are related to evaluating or awarding proposed grants or grants that have been awarded.

History. (§ 5 ch 36 SLA 2009)

Effective dates. —

Section 10, ch. 36, SLA 2009 makes this section effective June 21, 2009, in accordance with AS 01.10.070(c) .

Sec. 23.15.640. Services for eligible people; repayment. [Repealed, § 8 ch 36 SLA 2009.]

Sec. 23.15.641. Eligibility of grantees; use of assistance received.

1. To be eligible for a grant to help cover the cost of providing training and employment assistance, a person shall
   1. meet or exceed the requirements of AS 23.15.620 — 23.15.660 and regulations adopted under AS 23.15.620 — 23.15.660 ;
   2. offer training or employment assistance services that meet the requirements of regulations adopted under AS 23.15.620 — 23.15.660;
   3. be a governmental agency, a private business, an employer, or an organization exempt from taxation under 26 U.S.C. 501(c)(3) (Internal Revenue Code); and
   4. demonstrate to the satisfaction of the department and the board that
      1. the person’s accounting system is organized and maintained in accordance with generally accepted accounting principles, promotes efficiency, ensures compliance with program requirements, and can be audited at the department’s direction with not more than a reasonable amount of effort and expense; and
      2. grants awarded under the program will be used only as allowed under AS 23.15.620 — 23.15.660.
2. A recipient of a grant awarded under the program may use the grant to provide any of the following training and employment assistance services to eligible participants:
   1. industry-specific training;
   2. on-the-job training, including apprentice training in a registered apprenticeship program under 29 U.S.C. 50;
   3. institutional or classroom job-linked training;
   4. support services, including financial allowances and relocation expenses that the department determines are reasonably necessary to enable an eligible participant to receive training and employment assistance;
   5. assistance considered necessary to help an eligible participant obtain or retain a job for which training and employment assistance provided under the program has prepared the eligible participant;
   6. purchases of basic tools, work clothing, safety gear, or other items the eligible participant needs to obtain or retain a job for which training and employment assistance provided under the program has prepared the eligible participant;
   7. other costs the department determines are necessary to pay in order that an eligible participant can receive training or employment assistance or obtain or retain a job for which the training and employment assistance provided under the program has prepared the eligible participant.
3. The department may allow payment for items described in (b) of this section if the department determines that alternative sources of financing have been exhausted or are unavailable to the eligible participant or that a grant from the program is otherwise required so that, when combined with other available financing, the grant will enable an eligible participant to receive training or employment assistance approved by the department.

History. (§ 6 ch 36 SLA 2009)

Effective dates. —

Section 10, ch. 36, SLA 2009 makes this section effective June 21, 2009, in accordance with AS 01.10.070(c) .

Sec. 23.15.643. Eligibility of program participants.

The department and a person awarded a grant under the program may use the grant only to provide training and employment assistance services to eligible participants. To be an eligible participant, the person may be employed or employable and shall, at the time of application for training or employment assistance under the program,

1. be a resident of the state;
2. have worked in a position covered by AS 23.20, or similar provisions in another state, at any time during the five years immediately preceding the application; and
3. need training to improve the person’s prospects for obtaining or retaining employment.

History. (§ 6 ch 36 SLA 2009)

Effective dates. —

Section 10, ch. 36, SLA 2009 makes this section effective June 21, 2009, in accordance with AS 01.10.070(c) .

Sec. 23.15.645. Duties and powers of the department. [Repealed, § 8 ch 36 SLA 2009.]

Sec. 23.15.650. Work Incentive Program for Welfare Recipients. [Repealed, § 7 ch 128 SLA 1990.]

Sec. 23.15.651. Duties of Alaska Workforce Investment Board; grants; eligible entities. [Repealed, § 8 ch 36 SLA 2009.]

Sec. 23.15.652. Program accountability.

1. The department and a person who is awarded a grant to provide training and employment assistance services under the program shall comply with state and federal laws and maintain records, including accounting records, as required by those laws.
2. The department may allocate or authorize the expenditure of not more than 20 percent of the amount appropriated to the program for a fiscal year to pay for administration of the program by the department and the board.
3. The department shall annually prepare and present to the board a report concerning the program and notify the legislature that the report is available.

History. (§ 7 ch 36 SLA 2009)

Effective dates. —

Section 10, ch. 36, SLA 2009 makes this section effective June 21, 2009, in accordance with AS 01.10.070(c) .

Sec. 23.15.654. Appeals.

The department shall adopt regulations that provide for an appeal of a denial of a grant application under AS 23.15.620 — 23.15.660 .

History. (§ 7 ch 36 SLA 2009)

Effective dates. —

Section 10, ch. 36, SLA 2009 makes this section effective June 21, 2009, in accordance with AS 01.10.070(c) .

Sec. 23.15.660. Definitions.

In AS 23.15.620 — 23.15.660 ,

1. “board” means the Alaska Workforce Investment Board established in AS 23.15.550 ;
2. “program” means the state training and employment program established in AS 23.15.620 — 23.15.660 .

History. (§ 2 ch 116 SLA 1996; am § 25 ch 58 SLA 1999; am §§ 17, 18, 46 ch 86 SLA 2002; am § 6 ch 49 SLA 2003)

Revisor’s notes. —

This section was reorganized in 2002 and 2008 to place the defined terms in alphabetical order.

Administrative Code. —

For state training and employment program, see 8 AAC 87.

Secs. 23.15.700 — 23.15.810. Business incentive training program. [Repealed, § 6 ch 49 SLA 2003.]

Sec. 23.15.820. Powers and duties of the Alaska Workforce Investment Board.

1. The Alaska Workforce Investment Board shall
   1. administer the Alaska technical and vocational education program established in AS 23.15.820 — 23.15.850 ;
   2. facilitate the development of a statewide policy for a coordinated and effective technical and vocational education training system in this state and, to the extent authorized by federal and state law, plan and coordinate federal, state, and local efforts in technical and vocational education programs;
   3. adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out the purposes of AS 23.15.820 — 23.15.850 , including regulations that set standards for the percentage of a grant that may be used for administrative costs; the regulations must clearly identify and distinguish between expenses that may be included in administrative costs and those that may not be included in administrative costs; the percentage allowed for administrative costs may not exceed the lesser of five percent or the amount permitted under the requirements of a federal program, if applicable;
   4. administer the grant program under AS 23.15.840 and establish grant administration requirements including accounting procedures that apply to qualified entities and their grantees;
   5. facilitate the development and implementation of a statewide policy and procedure that provides for the acceptance of credit or hours toward a degree or technical program offered by a vocational or technical training center in the state for an applicant who provides satisfactory evidence of successful completion of relevant military education, training, or service as a member of the armed forces of the United States, the United States Reserves, the National Guard of any state, the Military Reserves of any state, or the Naval Militia of any state.
2. The board may
   1. receive money designated for technical and vocational education programs and may disburse money, including grants, to technical and vocational education projects in accordance with AS 37.07 (Executive Budget Act);
   2. enter into partnership agreements through appropriate administrative agencies with private industry training entities within the state in order to facilitate the coordination of training opportunities; and
   3. recommend to the legislature changes to enhance the effectiveness of the training programs it oversees under this section.

History. (§ 3 ch 132 SLA 2000; am § 33 ch 86 SLA 2002; am § 4 ch 28 SLA 2013)

Cross references. —

For Alaska Workforce Investment Board, see AS 23.15.550 .

Administrative Code. —

For state technical and vocational education program, see 8 AAC 86.

Effect of amendments. —

The 2013 amendment, effective December 31, 2013, added (a)(5), and made a related change.

Sec. 23.15.830. Alaska technical and vocational education program account.

The Alaska technical and vocational education program account is established in the general fund. The commissioner of administration shall separately account for money collected under AS 23.15.835 that the department deposits in the general fund. The legislature may appropriate the annual estimated balance in the account to the board to implement AS 23.15.820 — 23.15.850 . The legislature may appropriate the lapsing balance of the account to the unemployment compensation fund established in AS 23.20.130 .

History. (§ 3 ch 132 SLA 2000; am § 34 ch 86 SLA 2002)

Sec. 23.15.835. Special employee unemployment contributions for program.

1. In the manner provided in AS 23.20 and for the benefit of the program, the department shall collect from each employee an amount equal to .16 percent of the wages, as set out in AS 23.20.175 , on which the employee is required to make contributions under AS 23.20.290(d) . The department shall remit to the Department of Revenue, in accordance with AS 37.10.050 , money collected under this subsection.
2. Notwithstanding AS 23.20.290(d) , the department shall credit each employee with an amount equal to the amount collected from the employee under (a) of this section against unemployment contributions owed by the employee under AS 23.20.
3. The Department of Labor and Workforce Development shall assess and collect, under AS 23.20.185 — 23.20.275 , interest and penalties for delinquent reports and payments due under this section. Interest and penalties collected shall be handled in accordance with AS 23.20.130(d) .
4. Notwithstanding AS 23.15.840(a) , for the fiscal years ending June 30, 2015, through June 30, 2024, the money collected under this section or otherwise appropriated to the Alaska Workforce Investment Board shall be allocated directly in the following percentages to the following institutions for programs consistent with AS 23.15.820 — 23.15.850 and capital improvements:
5. The institutions receiving funding under (d) of this section shall provide an expenditure and performance report to the department by November 1 of each year that includes
   1. the percentage of former participants in the program who have jobs one year after leaving the program;
   2. the median wage of former participants seven to 12 months after leaving the program;
   3. the percentage of former participants who were employed after leaving the program who received training under the program that was related or somewhat related to the former participants’ jobs seven to 12 months after leaving the program;
   4. a description of each vocational education course funded through the allocation set out in (d) of this section that permits high school students to earn dual credit upon course completion, and the number of high school students who earned dual credit in the past year;
   5. a copy of any articulation agreement established under (g) of this section that either was in effect for the preceding year or is in process for the next year of funding, and the number of high school students who earned dual credit under each articulation agreement; and
   6. the performance and financial information needed to verify the performance of the program as specified by the department by regulation.
6. The department shall prepare and present an expenditure and performance report based on the information provided under (e) of this section to the legislature not later than the 15th day of each regular legislative session.
7. The institutions receiving funding under (d) of this section shall establish and maintain at least one articulation agreement under which dual credit may be earned by high school students upon completion of a vocational education course.
8. An institution’s failure to comply with (e) or (g) of this section shall result in a withholding penalty of 20 percent of the funding allocated under (d) of this section in the following year.

University of Alaska 45 percent Galena Interior Learning Academy 4 percent Alaska Technical Center 9 percent Alaska Vocational Technical Center 17 percent Northwestern Alaska Career and Technical Center 3 percent Southwest Alaska Vocational and Education Center 3 percent Yuut Elitnaurviat, Inc. People’s Learning Center 9 percent Partners for Progress in Delta, Inc. 3 percent Amundsen Educational Center 2 percent Ilisagvik College 5 percent.

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History. (§ 3 ch 132 SLA 2000; am §§ 1, 2 ch 47 SLA 2008; am §§ 30 — 33 ch 15 SLA 2014; am § 1 ch 24 SLA 2017; am § 1 ch 16 SLA 2020; am § 1 ch 4 SLA 2021)

Cross references. —

For governor’s transmittal letter for ch. 15, SLA 2014, see 2014 House Journal 1434 — 1437.

Effect of amendments. —

The 2014 amendment, effective July 1, 2014, in (a), substituted “.16 percent” for “.15 percent” following “in an amount equal to”, effective May 14, 2014, in the introductory language in (d), substituted “June 30, 2015” for “June 30, 2009” and “June 30, 2017” for “June 30, 2014”; in the list of institutions, deleted “University of Alaska Southeast 5 percent”, substituted “Galena Interior Learning Academy” for “Galena Project Education Vocational Training Center”, substituted “Alaska Technical Center” for “Kotzebue Technical Center”, substituted “Partners for Progress in Delta, Inc.” for “Delta Career Advancement Center”, substituted “Amundsen Educational Center” for “New Frontier Vocational Technical Center” and added “Ilisagvik College 5 percent”; effective July 1, 2015, in (e), added (e)(4) — (e)(6) and deleted former (e)(4) and (e)(5) related to satisfaction of participants and employers with the program; added (g) and (h), and made related and stylistic changes.

The 2017 amendment, effective June 30, 2017, in (d), substituted “June 30, 2020” for “June 30, 2017” and deleted “, formerly known as the Alaska Human Resource Investment Council,” following “Alaska Workforce Investment Board”.

The 2020 amendment, effective April 21, 2020, in (d), substituted “June 30, 2021” for “June 30, 2020”.

The 2021 amendment, effective June 10, 2021, in (d), in the introductory language, substituted “June 30, 2024” for “June 30, 2021”.

Editor’s notes. —

Section 2, ch. 24, SLA 2017 provides that the 2017 amendment to subsection (d) “is retroactive to June 30, 2017.”

Sec. 23.15.840. Grants for technical and vocational education.

1. The board shall award grants, in accordance with the priority list adopted under (f) of this section, to technical and vocational education entities. A technical and vocational education entity is eligible for a grant under this section if the entity meets program requirements, the grant program is physically located in Alaska, and the entity can demonstrate that
   1. the entity’s accounting systems include controls adequate to check the accuracy and reliability of accounting data, promote operating efficiency, and assure compliance with program requirements and generally accepted accounting principles;
   2. the entity’s activities do not replace or compete in any way with a federally approved apprenticeship program or any other existing training programs; and
   3. the entity has secured matching funds for the program for which the grant is requested.
2. The board may not award a grant if the grant would displace money available through existing public or private technical and vocational education programs.
3. Subject to the limits of its grant, an entity receiving a grant under this section shall provide one or more program elements. The program elements include
   1. industry-specific training;
   2. on-the-job training; and
   3. institutional or classroom job-linked training.
4. A technical or vocational educational institution that receives a grant from the board shall give appropriate state agencies full access to accounting records concerning the grant to assure compliance with program standards.
5. In making a grant under this section, the board shall require that the qualified entity and grantees of the qualified entity limit the amount of the grant proceeds spent on administration so that the total spent on administration from the proceeds of the technical and vocational education program account, including amounts spent by the board itself, does not exceed five percent. A training program funded by the board must
   1. meet the standards adopted by the board concerning the percentage of a grant that may be spent on administrative costs;
   2. be operated by an institution that holds a valid authorization to operate issued under AS 14.48 if the program is a postsecondary educational program operated by a postsecondary educational institution subject to regulation under AS 14.48.
6. To the extent that funding is available, grants shall be awarded to entities that apply for funding by the deadline established by the board by regulation. The board shall give priority to grant applications from qualified entities whose purpose is listed first on the list of priorities adopted under this subsection. If money remains after grants for the first priority have been awarded, the board may make grants to entities whose purpose is listed next on the list of priorities. The board shall proceed in this fashion until it has exhausted the money available for granting for the year. The board shall adopt a priority list each year based on economic, employment, and other relevant data in order to maximize employment opportunities for participants.

History. (§ 3 ch 132 SLA 2000; am §§ 35 — 39 ch 86 SLA 2002)

Administrative Code. —

For state technical and vocational education program, see 8 AAC 86.

Sec. 23.15.850. Definitions.

In AS 23.15.820 — 23.15.850 ,

1. “articulation agreement” means a dual-credit partnership between a school district and an institution receiving funding under AS 23.15.835(d) that describes vocational education courses, student eligibility, course location, academic policies, student support services, credit on a student’s transcript, funding, and other items required by the partnering institutions;
2. “board” means the Alaska Workforce Investment Board;
3. “dual credit” means simultaneous high school credit and credit toward a career or vocational certification.
4. “program” means the Alaska technical and vocational education program established in AS 23.15.820 — 23.15.850 .

History. (§ 3 ch 132 SLA 2000; am § 40 ch 86 SLA 2002; am § 34 ch 15 SLA 2014)

Revisor’s notes. —

Paragraphs (1) and (3) were enacted as (3) and (4), and renumbered in 2014.

Effect of amendments. —

The 2014 amendment, effective July 1, 2015, added paragraph (3) and (4) [now (1) and (3), respectively].

Sec. 23.20.005. Purpose.

1. This chapter shall be liberally construed to accomplish its purposes to promote employment security by increasing opportunities for placement through the maintenance of a system of public employment offices and to provide through the accumulation of reserves for the payment of compensation to individuals with respect to their unemployment.
2. The legislature declares its intention to provide for carrying out the purposes of this chapter in cooperation with the appropriate agencies of other states and the federal government, as part of a nationwide employment security program, and particularly to provide for meeting the requirements of Title III of the Federal Social Security Act, the requirements of 26 U.S.C. 3303 and 3304 (Federal Unemployment Tax Act, Internal Revenue Code), and the Act of Congress approved June 6, 1933, entitled “An Act to provide for the establishment of a national employment system and for cooperation with the states in the promotion of such system, and for other purposes” (cited in this chapter as the Wagner-Peyser Act), and Title IV of the Act of Congress approved June 22, 1944, each as amended, in order to obtain for this state and its citizens the grants and privileges available under the federal Act.  Doubt as to the proper construction of a provision of this chapter shall be resolved in favor of conformity with the requirements of the federal Act.

History. (§ 101 ch 5 ESLA 1955)

Cross references. —

For Title III of the Social Security Act, see 42 U.S.C. §§ 501-504; for the Wagner-Peyser Act, see 29 U.S.C. §§ 49 — 49c, 49d, 49g, 49h, 49j, 49k and 557; for Title IV of the Act of June 22, 1944, see P.L. 78-346 (Servicemen’s Readjustment Act of 1944).

Sec. 23.20.010. Policy.

As a guide to the interpretation and application of this chapter, the public policy of the state is declared to be as follows: Economic insecurity due to involuntary unemployment is a serious menace to the health, morals, and welfare of the people of the state. Involuntary unemployment is, therefore, a subject of general interest and concern which requires appropriate action by the legislature to prevent its spread and to lighten its burden and to maintain purchasing power as a factor in stabilizing the economy of the state. This can be accomplished by encouraging employers to provide more stable employment and by the systematic accumulation of funds during periods of employment, from which benefits may be paid for periods of involuntary unemployment. The legislature, therefore, declares that, in its considered judgment, the public good and the general welfare of the citizens of the state require the enactment of this measure, under the police power of the state, for the operation of public employment service offices and for the establishment of an employment security program to be used for the benefit of eligible unemployed persons.

History. (§ 102 ch 5 ESLA 1955)

Secs. 23.20.012 , 23.20.015. Policy on temporary unemployment compensation; annual report. [Repealed, § 25 ch 122 SLA 1977.]

Sec. 23.20.020. Maintenance and protection of fund.

If possible, there shall be provided in the fund a reserve against the liability in future years to pay benefits. Whenever the department believes that a change in contribution or benefit rates is necessary to protect the solvency of the fund, it shall promptly inform the governor and the legislature, and make recommendations with respect to a change.

History. (§ 306 ch 5 ESLA 1955; am § 4 ch 60 SLA 1960)

Sec. 23.20.021. Certain appropriations to the fund.

In accordance with AS 37.07 (Executive Budget Act), the legislature may appropriate money to the fund.

History. (§ 2 ch 50 SLA 2013)

Effective dates. —

Section 14, ch. 50, SLA 2013 makes this section effective July 1, 2013.

Sec. 23.20.022. Actuarial studies.

On December 1, 1975, the commissioner shall submit to the governor an actuarial study of the unemployment tax and benefit structures established under this chapter. Thereafter, an actuarial study of the structures shall be submitted to the governor on December 1 of every second year.

History. (§ 1 ch 43 SLA 1973)

Sec. 23.20.025. Establishment of Employment Security Advisory Council. [Repealed, § 16 ch 61 SLA 1995. For Alaska Human Resource Investment Council, see AS 23.15.550 et seq.]

For Alaska Human Resource Investment Council, see AS 23.15.550 et seq.

For Alaska Human Resource Investment Council, see AS 23.15.550 et seq.

Sec. 23.20.030. Director.

1. Subject to AS 23.20.035 , the department shall appoint a director.  The director shall administer this chapter under the authority which the department delegates.  The department may not delegate the power to adopt, amend, or rescind regulations.
2. The department shall prescribe the divisions, subdivisions, and units of the organization to be directed by the director to carry out the purposes of this chapter.  The director may require a person handling money or signing checks to give bond.  The director shall have an official seal which shall be judicially noticed.
3. [Repealed, § 59 ch 59 SLA 1982.]

History. (§ 306 ch 5 ESLA 1955; § 310 ch 5 ESLA 1955; am § 4 ch 60 SLA 1960; am § 59 ch 59 SLA 1982)

Sec. 23.20.035. Duties and powers of director.

1. The director, in accordance with AS 23.20.020 and 23.20.030 , shall employ persons, including a deputy director, make expenditures, require reports, make investigations, and take other action that the director considers necessary to carry out the authority of the office.
2. The director may delegate powers and duties to a deputy director or to a responsible employee of the agency when the director is absent from the office. The deputy director shall assume the duties and powers of the director when that office is vacant.

History. (§ 311 ch 5 ESLA 1955; am § 1 ch 75 SLA 1957; am § 1 ch 9 SLA 1980)

Sec. 23.20.040. Qualifications of director.

A person may not be appointed director unless the person is a citizen of the United States and qualified by training and experience to perform the duties of the office.

History. (§ 310 ch 5 ESLA 1955)

Sec. 23.20.045. Regulations.

The department may adopt regulations under AS 44.62 (Administrative Procedure Act) necessary to administer this chapter.

History. (§ 312 ch 5 ESLA 1955; am § 2 ch 9 SLA 1980; am § 26 ch 21 SLA 1985)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.050. Publications.

The department shall have printed for distribution to the public the text of this chapter, the department’s regulations, the annual reports of the commissioner to the governor, and any other material the department considers relevant and suitable. The department shall furnish copies of these to any person upon application.

History. (§ 313 ch 5 ESLA 1955)

Sec. 23.20.055. Department records; admissibility.

1. The department may make summaries, compilations, photographs, duplications, or reproductions of records, reports, or transcripts of them which it considers advisable for the effective and economical preservation of the information contained in them.
2. The summaries, compilations, photographs, duplications, or reproductions, duly authenticated, are admissible in a proceeding under this chapter, including a court action, if the original records would be admissible.
3. The department may provide by regulation for the destruction, after a reasonable period, of records, reports, transcripts, other papers in its custody, or reproductions of them, when their preservation is no longer necessary for a purpose necessary to the administration of this chapter.

History. (§ 316 ch 5 ESLA 1955)

Sec. 23.20.060. Oaths and witnesses.

In administering this chapter, the department may administer oaths and affirmations, take depositions, certify to official acts, and issue subpoenas to compel the attendance of witnesses and production of books, papers, correspondence, memoranda, and other records considered necessary as evidence in connection with a disputed claim or the administration of this chapter.

History. (§ 318 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.065. Subpoenas.

In case of contumacy, or refusal to obey a subpoena issued to any person, the superior court may, upon application by the department, issue an order requiring the person to appear before the department to produce evidence if ordered, or to give testimony touching the matter under investigation or in question. Failure to obey the order of the court is punishable as contempt.

History. (§ 320 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.070. Self-incrimination.

A person may not be excused from attending and testifying or from producing books, papers, correspondence, memoranda, and other records before the department, or in obedience to a subpoena of the department in a cause or proceeding before the department, or an appeal tribunal, on the ground that the testimony or evidence required of the person may tend to incriminate the person or subject the person to a penalty or forfeiture. An individual may not be prosecuted or subjected to a penalty or forfeiture for or on account of a transaction, matter, or thing concerning which the individual is compelled, after having claimed the privilege against self-incrimination, to testify or produce evidence. However, the individual testifying is not exempt from prosecution and punishment for perjury committed in testifying.

History. (§ 321 ch 5 ESLA 1955)

Sec. 23.20.075. Acquisition of land and buildings.

1. The department may acquire in the name of the state by term purchase agreements based on competitive bids in accordance with AS 36.30 (State Procurement Code) land and buildings upon terms and conditions that are approved by the Bureau of Employment Security of the United States, or its successor, for the purpose of providing office space for the department at a place which the department finds necessary and suitable.
2. An agreement made for the purchase of premises is subject to the approval of the attorney general and does not subject the state to liability for the payment of the purchase price, except from money which is allocated to the state by the United States Bureau of Employment Security or its successor for the administration of this chapter.
3. All money received from the United States for the payments authorized in this section for land and buildings shall be deposited in the employment security administration fund in the state treasury and is appropriated from that fund for purposes of this chapter.
4. It is the policy of this state that if premises are purchased under this chapter, the department shall be housed in the premises without further payment by the United States, except for general maintenance, utilities, and janitorial services, or if, in the future, it is desirable to move the offices, other suitable similar space will be furnished by the state without further payment for the space by the United States, except for general maintenance, utilities, and janitorial services.

History. (§ 324 ch 5 ESLA 1955; am § 21 ch 106 SLA 1986)

Sec. 23.20.077. Application for demonstration programs.

1. The Department of Labor and Workforce Development shall pursue application with appropriate agencies to qualify this state as a pilot state for demonstration programs related to helping unemployed Alaskans regain employment, if administrative money is available to operate the project.
2. The Department of Labor and Workforce Development may waive provisions of this chapter for individuals who participate in a demonstration project, to the extent required for the state to participate in the project.

History. (§ 28 ch 100 SLA 1989)

Revisor’s notes. —

Enacted as AS 23.20.533. Renumbered in 1989.

In 1999, in this section, “Department of Labor” was changed to “Department of Labor and Workforce Development” in accordance with § 90, ch. 58, SLA 1999.

Sec. 23.20.080. Federal-state cooperation.

1. In the administration of this chapter, the department shall cooperate, to the extent consistent with this chapter, with the Secretary of Labor, and shall take action through the adoption of regulations, administration methods, and standards that is necessary to obtain for this state and its citizens all advantages available under 26 U.S.C. 3303 and 3304 (Internal Revenue Code) and the Wagner-Peyser Act, as amended.  The department shall comply with the regulations of the Secretary of Labor relating to the receipt or expenditure by this state of money granted under these federal laws and shall make reports in the form and containing the information which the Secretary of Labor requires.  The department shall comply with the provisions which the Secretary of Labor may from time to time find necessary to assure the correctness and verification of the reports.  The department may cooperate with every agency of the United States charged with the administration of an unemployment insurance law.
2. Notwithstanding AS 23.20.330 — 23.20.409 , after notifying the legislature and other interested parties of its intent, the department may implement an unemployment compensation program not otherwise provided for in this chapter in accordance with this subsection. A program implemented under this subsection is repealed on the date two years after the date on which it took effect unless its implementation is approved by law. The program may be implemented only if
   1. the program is authorized by the United States Secretary of Labor;
   2. the governor approves the implementation in writing;
   3. the commissioner of labor and workforce development determines that the program will result in the receipt of additional federal money to carry out the purposes of this chapter and will produce a net monetary gain to the state and its people; and
   4. the implementation will not require spending money from the general fund other than money received from the federal government for the program.

History. (§ 322 ch 5 ESLA 1955; am § 1 ch 2 SLA 1992)

Revisor’s notes. —

In 1999, in (b) of this section, “commissioner of labor” was changed to “commissioner of labor and workforce development” in accordance with § 90, ch. 58, SLA 1999.

Cross references. —

For Wagner-Peyser Act, see the cross references at AS 23.20.005 .

Administrative Code. —

For employment security, see 8 AAC 85.

Legislative history reports. —

For Governor’s transmittal letter in connection with the enactment of subsection (b) by § 1, ch. 2, SLA 1992 (CCS SB 349), see 1992 Senate Journal 1788.

Sec. 23.20.081. Emergency unemployment compensation program. [Repealed, §§ 9, 15 ch 28 SLA 1993.]

Sec. 23.20.085. Interstate benefit payments.

1. The department shall enter into reciprocal arrangements with appropriate and duly authorized agencies of other states or of the federal government, or both, so that potential rights to benefits under this chapter may constitute the basis for payment of claims by another state or by the federal government and potential rights to benefits accumulated under the law of another state or of the federal government may constitute the basis for the payment of claims by this state. These claims shall be paid under the provisions of this chapter or under the provisions of the law of the other state or of the federal government or under that combination of the provisions of both laws as is agreed upon as being fair and reasonable to all affected interests.  An arrangement under this section may not be entered into unless it contains provision for reimbursement to the fund for those claims paid on the basis of wages and service subject to the law of another state or of the federal government, and provision for reimbursement from the fund for those claims paid by another state or by the federal government on the basis of wages and service subject to this chapter.  Reimbursements paid from the fund under this section are considered to be benefits for the purposes of this chapter.
2. The department shall participate in any arrangements for the payment of benefits on the basis of combining an individual’s wages and employment covered under this chapter with the individual’s wages and employment covered under the unemployment insurance laws of other states which are approved by the United States Secretary of Labor in consultation with the state employment security agencies as reasonably calculated to assure the prompt and full payment of benefits in such situations and which arrangements shall include provisions for
   1. applying the base period of a single state law to a claim involving the combining of an individual’s wages and employment covered under two or more state unemployment insurance laws, and
   2. avoiding the duplicate use of wages and employment by reason of the combining.
3. In this section, the terms “other state” and “another state” include any state or territory of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and Canada, and where applicable include the federal government.

History. (§ 325 ch 5 ESLA 1955; am § 5 ch 60 SLA 1960; am § 1 ch 106 SLA 1971; am § 1 ch 122 SLA 1977)

Revisor’s notes. —

Under the terms of § 30, ch. 122, SLA 1977, the 1977 amendment was effective January 1, 1978, the day after the date the Secretary of Labor approved the Virgin Islands Employment Security Law.

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.090. Reciprocal coverage and cooperation.

1. The commissioner may enter into reciprocal arrangements with appropriate and authorized agencies of other states or of the federal government, or both, whereby, notwithstanding AS 23.20.395 ,
   1. service performed by an individual for a single employing unit for which service is customarily performed by the individual in more than one state is considered service performed entirely within any one of the states in which (A) a part of the individual’s service is performed, (B) the individual resides, or (C) the employing unit maintains a place of business; provided, that there is in effect, as to the service, an approved election by an employing unit with the acquiescence of the individual, under which service performed by the individual for the employing unit is considered performed entirely within that state; and
   2. service performed by not more than three individuals, on a portion of a day but not necessarily simultaneously, for a single employing unit which customarily operates in more than one state is considered service performed entirely within the state in which the employing unit maintains the headquarters of its business; provided, that there is in effect, as to the service, an approved election by an employing unit with the affirmative consent of each individual, under which service performed by the individual for the employing unit is considered performed entirely within that state.
2. To the extent permissible under the laws and constitution of the United States, the department may enter into an arrangement of the character provided in this section with the agency of a foreign government administering an employment security law.

History. (§ 325.1 ch 5 ESLA 1955, added by § 6 ch 60 SLA 1960)

Sec. 23.20.095. Exchange of services, facilities, and information.

1. The administration of this chapter and of other state and federal unemployment compensation and public employment service laws will be promoted by cooperation between this state and those states and the appropriate federal agencies exchanging services and making facilities and information available.
2. The department may make investigations, secure and transmit information, make available services and facilities, and exercise other powers provided in this chapter with respect to the administration of this chapter which the department considers necessary or appropriate to facilitate the administration of the unemployment compensation or public employment service law of another state or the federal government.

History. (§ 326 ch 5 ESLA 1955)

Sec. 23.20.100. Public employment offices.

The department shall establish and maintain free public employment offices in the number and in the places which may be necessary for the administration of this chapter and for the purposes of performing functions which are within the scope of the Wagner-Peyser Act, as amended. The provisions of the Wagner-Peyser Act, as amended, are accepted by this state, and the department is designated the agency of this state for the purposes of that Act. All money received by this state under that Act shall be paid into the employment security administration fund and shall be expended solely for the maintenance of the state system of public employment offices.

History. (§ 331 ch 5 ESLA 1955)

Cross references. —

For the Wagner-Peyser Act, see the cross references at AS 23.20.005 .

Sec. 23.20.105. Employing units to keep records and reports.

An employing unit shall keep work records containing information which the department prescribes. The records shall be open to inspection and may be copied by the department at any reasonable time and as often as may be necessary. The department may require an employing unit to submit sworn or unsworn reports, with respect to persons employed by it, which are considered necessary for the administration of this chapter.

History. (§ 315 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.110. Information obtained by department.

1. Except for disclosures required by 42 U.S.C. 503, as amended, and 20 C.F.R. 603, as amended, and disclosures authorized under this section, the department shall hold information obtained from an employing unit or individual in the course of administering this chapter and determinations as to the benefit rights of an individual confidential and may not disclose them or open them to public inspection in a manner that reveals the identity of the individual or employing unit. A claimant or an employing unit is entitled to information from the records of the department only to the extent necessary to properly present or protest a claim or determination under this chapter. The department may not provide information that is confidential under this section to a person for use in any civil or administrative matter not directly involving the presentation or protest of a claim or determination under this chapter; however, subject to restrictions that the department prescribes by regulation, the information must be made available to the United States Department of Homeland Security, Bureau of Citizenship and Immigration Services, for the purpose of verifying a claimant’s immigration status, to the United States Railroad Retirement Board, to an agency of this state or another state or federal agency charged with the administration of an unemployment compensation law or the maintenance of a system of public employment offices, to the United States Department of the Treasury, Internal Revenue Service, for the purposes of the Federal Unemployment Tax Act, or to the Department of Revenue for tax purposes. Information obtained in the course of administering this chapter or in connection with the administration of the employment service may be made available to persons or agencies for purposes appropriate to the operation of a public employment service or the administration of employment and training programs planned or coordinated by the Alaska Workforce Investment Board under AS 23.15.550 — 23.15.585 .
2. Upon request the department shall furnish to an agency of the United States charged with the administration of public works or assistance through public employment, and may furnish to a state agency similarly charged, the name, address, ordinary occupation, and employment status of each recipient of benefits and the recipient’s rights to benefits under this chapter.
3. Upon request of an agency of this or another state or of the federal government which administers or operates one or more programs of public assistance under either federal law or the law of this state, or which is charged with any duty or responsibility under any such program, and if that agency is required by law to impose safeguards for the confidentiality of information at least as effective as required under this section, the department shall provide, with respect to any named individual specified by the requesting agency, the following information:
   1. whether the individual is receiving, has received, or has made application for unemployment compensation under this chapter;
   2. the period, if any, for which unemployment compensation was payable and the weekly rate of compensation paid;
   3. the individual’s most recent address; and
   4. whether the individual has refused an offer of employment, and, if so, the date of the refusal and a description of the employment refused, including duties, conditions of employment, and rate of pay.
4. The department may require that an agency or authorized person to which it provides information under this section reimburse the department for its costs of furnishing that information.
5. The department shall provide wage and unemployment compensation information
   1. requested by a state or federal agency under an income and eligibility verification system that meets the requirements of 42 U.S.C. 1320b-7 (Social Security Act);
   2. as required by federal law for child support purposes;
   3. to the United States Secretary of Health and Human Services for the National Directory of New Hires as required by 42 U.S.C. 503 and 42 U.S.C. 653; or
   4. to a state or a political subdivision of a state that administers a program funded under 42 U.S.C. 601 — 619 that provides temporary assistance for needy families.
6. [Repealed, § 2 ch 60 SLA 1985.]
7. A recipient of records disclosed under this section may not use the disclosed records for a purpose other than the purpose for which the disclosure was made. The requirements concerning the confidentiality of information obtained in the course of administering this chapter apply to officers and employees of a state, federal, municipal, or other agency to whom the department provides information as authorized by this section.
8. [Repealed, § 13 ch 45 SLA 2008.]
9. [Repealed, § 13 ch 45 SLA 2008.]
10. [Repealed, § 13 ch 45 SLA 2008.]
11. If an individual who is applying for or participating in a housing assistance program administered by the United States Department of Housing and Urban Development gives authorization, the department shall disclose, to the United States Department of Housing and Urban Development or to representatives of the housing assistance program operating the program, wage information and unemployment compensation information. The authorization shall be made by the individual on a consent form approved by the department. The form must state the information authorized to be released and require the signature of the individual. In this subsection,
    1. “unemployment compensation information” means whether the individual is receiving, has received, or has applied for unemployment compensation, and the amount of unemployment compensation that the individual is receiving, has received, or is eligible to receive, and the individual’s current address and other contact information;
    2. “wage information” means the social security number, or numbers if there are more than one, and quarterly wages of an employee, and the name, address, state, and, if known, federal employer identification number of an employer reporting wages under this chapter.
12. The department may provide information obtained under this chapter to an agency of this state or to a person under contract with the state to
    1. verify the eligibility of an applicant for a public benefit or a publicly financed payment;
    2. assist the state in the collection of fines, penalties, judgments of restitution on behalf of victims of crimes or delinquent acts, or other payments ordered by a court or an administrative agency; or
    3. collect money owed to the fund under this chapter.
13. The department may not release information under this section to a state agency or to a person under contract with the state until the department and the agency or person have entered into a written agreement that governs the release of information. The written agreement must specify
    1. the purpose for the information;
    2. a description of the information to be provided;
    3. a description of the procedure for transmitting, securing, using, and disposing of the information;
    4. the method of reimbursement, if any, for the cost of providing the information; and
    5. that the department may perform on-site inspections to ensure that the confidentiality requirements of this section are met.
14. Notwithstanding (a) of this section, the department may produce statistical and other public reports based on information obtained in the course of administering this chapter, so long as the department complies with the requirements of 20 C.F.R. 603, as amended, regarding the use or release of confidential records.
15. Upon request and for child support purposes authorized under law, the department shall provide to the child support services agency created in AS 25.27.010 , or the child support enforcement agency of another state, the following:
    1. the name, address, social security number, ordinary occupation, and employment status of each applicant for or recipient of benefits under this chapter;
    2. information about the applicant’s or recipient’s right to benefits under this chapter;
    3. the name, address, and employer identification number of the applicant’s or recipient’s current or former employer;
    4. information, if available, on the applicant or recipient concerning
       1. earnings or other income of the applicant or recipient;
       2. benefits from employment, including rights to or enrollment in group health care coverage; and
       3. the type, status, location, and amount of assets of or debts owed by or to the applicant or recipient.
16. Upon the written request by a state district attorney, a municipal attorney, a United States attorney, or the Federal Bureau of Investigation, the department may release to the requester information under this section for the investigation or prosecution of a crime or to enforce an order of a court in a criminal matter, including enforcing probation or parole conditions.
17. The confidentiality requirements of this section do not apply to disclosure of decisions and records on appeal in any matter before the department as long as the federal social security number of the claimant and the employer’s federal employer identification number and federal social security number are redacted or removed before disclosure is made.
18. The department may provide information obtained under this chapter to another state agency if
    1. the disclosure is authorized under 20 C.F.R. 603, as amended;
    2. the disclosure is for the statewide workforce and education-related statistics program described under AS 14.42.035 ;
    3. the department has entered into a written agreement with the agency receiving the information in which the agency agrees not to disclose the information unless
       1. the subsequent disclosure is for the statewide workforce and education-related statistics program described under AS 14.42.035 ; and
       2. the agency is authorized to make the subsequent disclosure under a written agreement between the agency and the Alaska Commission on Postsecondary Education.
19. In this section, “judgment of restitution” has the meaning given in AS 09.38.500 .

History. (§ 323 ch 5 ESLA 1955; am § 1 ch 79 SLA 1969; am § 2 ch 122 SLA 1977; am § 3 ch 9 SLA 1980; am § 2 ch 115 SLA 1982; am § 1, 2 ch 60 SLA 1985; am §§ 2, 3 ch 40 SLA 1988; am § 2 ch 100 SLA 1989; am §§ 1 — 3 ch 43 SLA 1996; am §§ 33, 34 ch 87 SLA 1997; am § 27 ch 58 SLA 1999; am § 1 ch 51 SLA 2000; am §§ 15, 16 ch 92 SLA 2001; am § 41 ch 86 SLA 2002; am §§ 1, 2 ch 130 SLA 2004; am §§ 1 — 7, 13 ch 45 SLA 2008; am § 3 ch 32 SLA 2018)

Revisor's notes. —

The subsections of this section were relettered in 2004, 2008, and 2018.

In 2004, “child support enforcement agency created in AS 25.27.010 ” was changed to “child support services agency created in AS 25.27.010 ” in (o) of this section in accordance with § 12(a), ch. 107, SLA 2004.

Cross references. —

Under sec. 4, ch. 32, SLA 2018, subsection (r) “applies to information obtained by the Department of Labor and Workforce Development under AS 23.30 before, on, or after” June 19, 2018.

Administrative Code. —

For employment security, see 8 AAC 85.

Effect of amendments. —

The 2004 amendment, effective June 30, 2004, substituted “federal, or municipal agency” for “or federal agency” in subsection (g), and added subsection (q) [now (p)].

The 2008 amendment, effective May 29, 2008, rewrote subsections (a) and (n), inserted “wage and unemployment compensation” in the introductory language of subsection (e), added paragraphs (e)(3) and (4), inserted the first sentence of subsection (g), substituted “municipal, or other” for “or municipal” in the second sentence of subsection (g), repealed subsections (h) — (j), substituted “has received, or is eligible to receive, and the individual’s current address and other contact information” for “or will receive” in paragraph (k)(1), added paragraph (m)(5), added subsection (q), and made related changes.

The 2018 amendment, effective June 19, 2018, added (s) [now (r)].

Editor's notes. —

The delayed amendments to this section by § 148(c), ch. 87, SLA 1997, as amended by § 53, ch. 132, SLA 1998, which were to take effect July 1, 2001, were repealed by § 15, ch. 54, SLA 2001.

Section 45, ch. 92, SLA 2001, provides that the amendments to subsection ( l ) and the addition of subsection (p) [now (s)], made by ch. 92, SLA 2001, apply “to judgments or orders of restitution entered in adjudications of delinquency of minors or in criminal cases before, on, or after January 1, 2002.”

Legislative history reports. —

For governor’s transmittal letter for ch. 130, SLA 2004 (HB 490), which relates to the release of employment security records for law enforcement purposes and amends subsection (g) and adds subsection (p) of this section, see 2004 House Journal 2613 — 2614.

Opinions of attorney general. —

Although subsection (a) of this section and former AS 43.20.190(a) (replaced by AS 43.05.230(a) ) guarantee confidentiality of records in the Department of Labor and Revenue, AS 24.20.271 (6) (now AS 24.20.271 (7)) enables the Division of Audit to have access to the records of every state agency whether confidential or not. 1972 Op. Att’y Gen. (Nov. 21, 1972).

A proposed agreement between the Internal Revenue Service and the Employment Security Division allowing the IRS direct computer access to employment security information is not permissible under this section. April 24, 1985 Op. Att’y Gen.

Disclosure of the results of a survey conducted by the Department of Labor regarding employment of residents and nonresidents on the Eilson AFB Housing Project as part of an effort to promote local hire on the project must be limited to purely statistical information, without identification of individual contractors. October 14, 1985 Op. Att’y Gen.

The Department of Labor may not compile and release a list of the names and addresses of people who commute to Anchorage to work if it must obtain this information from the data provided by employers in compliance with the state’s employment security program. October 2, 1989 Op. Att’y Gen.

Sec. 23.20.115. Unauthorized disclosure of information.

A member of the department, an employee of the department, an agent of the department, or an officer or employee of a state, federal, municipal, or other agency that has been provided with information by the department who, in violation of AS 23.20.110 , makes a disclosure of information obtained from an employing unit or from an individual in the administration of this chapter, or a person who has obtained a list of applicants for work or of claimants or recipients of benefits under this chapter and who uses or permits the use of the list for a purpose not authorized by AS 23.20.110 is guilty of a class B misdemeanor.

History. (§ 905 ch 5 ESLA 1955; am § 4 ch 9 SLA 1980; am § 3 ch 115 SLA 1982; am § 3 ch 130 SLA 2004; am § 8 ch 45 SLA 2008)

Cross references. —

For fines and sentences for class B misdemeanors, see AS 12.55.035 and 12.55.135 .

Effect of amendments. —

The 2004 amendment, effective June 30, 2004, substituted “federal or municipal agency” for “or federal agency” near the beginning of the section.

The 2008 amendment, effective May 29, 2008, substituted “municipal, or other” for “or municipal” in the first sentence.

Legislative history reports. —

For governor’s transmittal letter for ch. 130, SLA 2004 (HB 490), which relates to the release of employment security records for law enforcement purposes and adds this section, see 2004 House Journal 2613 — 2614.

Sec. 23.20.120. Examination of bank.

The department may request the Comptroller of the Currency of the United States to make or have made an examination of the correctness of a return or report of a national banking association rendered under this chapter. The department may, in connection with the request, transmit the report or return to the Comptroller of the Currency of the United States as provided in 26 U.S.C. 3305(c) (Internal Revenue Code).

History. (§ 323 ch 5 ESLA 1955)

Sec. 23.20.125. Data to be collected. [Repealed, § 1 ch 74 SLA 1965.]

Sec. 23.20.130. Unemployment compensation fund; training and building fund; establishment and control.

1. There shall be maintained, as special funds separate and apart from all public funds of this state, an unemployment compensation fund, which shall be administered by the department exclusively for the purposes of this chapter, and a training and building fund.
2. The unemployment compensation fund consists of
   1. all contributions collected under this chapter;
   2. interest earned on money in the unemployment trust fund account;
   3. property or securities acquired through the use of money belonging to the fund;
   4. earnings of the property or securities;
   5. sums made available to the state as advances under 42 U.S.C. 1321 — 1324 (Title XII, Social Security Act), as amended, for the purposes of paying benefits as provided in this chapter;
   6. advances from the general fund of the state for the purposes of paying benefits provided in this chapter;
   7. all money credited to this state’s account in the unemployment trust fund under 42 U.S.C. 1103 (§ 903, Social Security Act), as amended;
   8. all money received for the fund from any other source;
   9. reimbursement of benefits paid under AS 23.20.277 and 23.20.278 ; and
   10. recovery of benefits paid from the unemployment compensation fund to individuals not entitled to them as provided by AS 23.20.390 .
3. All money in the unemployment compensation fund is mingled and undivided.
4. The training and building fund consists of all interest and penalties collected under AS 23.20.185 , 23.20.190 , and 23.20.195 and all sums recovered on official bond for losses sustained by the fund. Training and building fund money shall be deposited in the clearing account of the unemployment compensation fund for clearance only and does not become a part of the fund.  The unobligated amount in the training and building fund in excess of $100,000 on the close of business of the 30th day following the last day of each fiscal year shall be transferred within 20 days to this state’s account in the unemployment trust fund.  The fund shall be included in the budget submitted to the legislature under AS 37.07 (Executive Budget Act).  Funds available in the training and building fund shall be expended upon the direction of the department, with the approval of the governor, when it appears to the governor that the expenditure is necessary for but not limited to
   1. the proper administration of this chapter if no federal funds are available for the specific purpose for which the expenditure is to be made, and if the funds are not substituted for appropriations from federal funds that would be made available in the absence of those funds;
   2. the proper administration of this chapter, if appropriations from federal funds have been requested but not yet received, and the training and building fund will be reimbursed upon receipt of the requested federal appropriation;
   3. [Repealed, § 84 ch 58 SLA 1999.]
   4. the purposes specified in AS 23.20.075 .

History. (§ 401 ch 5 ESLA 1955; am § 13 ch 169 SLA 1957; am § 1 ch 123 SLA 1968; am § 1 ch 106 SLA 1969; am § 2 ch 106 SLA 1971; am § 1 ch 88 SLA 1976; am §§ 5, 6 ch 9 SLA 1980; am § 1 ch 106 SLA 1984; am § 84 ch 58 SLA 1999)

Sec. 23.20.135. Accounts and deposit.

1. The commissioner of revenue is ex officio the treasurer and custodian of the fund and shall administer it as directed by the department. Disbursements shall be issued from the fund in accordance with AS 37.25.050 and the regulations that the department adopts. The fund has three separate accounts:
   1. a clearing account;
   2. an unemployment trust fund account; and
   3. a benefit account.
2. The department, or a designee of the department, shall immediately deposit, upon receipt, all money payable to the fund in the clearing account. Refunds of contributions erroneously collected and payable under AS 23.20.225 and 23.20.526(a)(11) may be paid from the clearing account in the same manner, or from the training and building fund.  Interest and penalty payments may not be refunded from the unemployment compensation fund.  After clearance, all money in the clearing account, except for that portion of employee contributions under AS 23.20.290(d) used to pay interest on advances received under AS 23.20.140 , shall be immediately deposited with the United States Secretary of the Treasury to the credit of the account of this state in the unemployment trust fund established and maintained under 42 U.S.C. 1104 (§ 904, Social Security Act), as amended.
3. The benefit account consists of money requisitioned from this state’s account in the unemployment trust fund for the purpose of paying benefits.  Money in the clearing and benefit accounts may be deposited by the designee of the department, under the direction of the department, in a bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium may be paid out of the fund.  Money in these accounts may not be commingled with other state funds, but shall be maintained in separate accounts on the books of the depository bank.  The money is secured by the depository law of this state. Collateral pledged for this purpose shall be kept separate and distinct from collateral pledged to secure other funds of the state.  The commissioner of revenue is liable on the official bond of the commissioner for the faithful performance of the commissioner’s duties in connection with the fund. Sums recovered for losses sustained by the fund shall be deposited in the fund.

History. (§ 402 ch 5 ESLA 1955; am § 14 ch 169 SLA 1957; am § 5 ch 106 SLA 1969; am § 7 ch 9 SLA 1980; am § 1 ch 82 SLA 1987; am § 11 ch 175 SLA 2004)

Administrative Code. —

For employment security, see 8 AAC 85.

Effect of amendments. —

The 2004 amendment, effective January 1, 2006, in subsection (a), substituted “Disbursements shall be issued from” for “Checks or warrants shall be issued on,” inserted “AS 37.25.050 and,” and made stylistic changes.

Sec. 23.20.140. Advances.

When, in accordance with 42 U.S.C. 1321 — 1324 (Title XII, Social Security Act), as amended, the balance in the unemployment trust fund reaches a point where the governor must apply for an advance in order to obtain for the state and its citizens the advantages available under 42 U.S.C. 1321 — 1324, the department shall notify the governor and take other action which is appropriate to obtain an advance to the unemployment trust fund and arrange for its repayment in accordance with 42 U.S.C. 1321 — 1324.

History. (§ 403 ch 5 ESLA 1955; am § 8 ch 9 SLA 1980; am § 2 ch 82 SLA 1987)

Sec. 23.20.145. Withdrawals.

1. In accordance with regulations adopted by the department, money shall be requisitioned from the state’s account in the unemployment trust fund solely for the payment of benefits and refunds, except that money credited to the state’s account under 42 U.S.C. 1103 (§ 903, Social Security Act), as amended, shall be used exclusively as provided in (f) — (h) of this section.
2. The department shall from time to time requisition from the unemployment trust fund amounts not exceeding the amounts standing to the state’s account in the fund that it considers necessary for the payment of benefits for a reasonable future period. Upon receipt of an amount the department shall deposit the money to the benefit account. A payment may be made solely from the benefit account.
3. If money in the clearing account is not sufficient to provide for refunds of contributions erroneously collected and payable under AS 23.20.225 and 23.20.526(a)(11) , the department shall withdraw from the unemployment trust fund the amounts not exceeding the amount standing to this state’s account in the fund that are necessary for the payment of the refunds, but no amounts may be withdrawn from the unemployment trust fund for the refund of interest and penalty payments. Upon receipt, the department, or the designee of the department, shall deposit this money to the clearing account. A payment of a refund shall be made from the clearing account.
4. Expenditures of the money in the benefit account and refunds from the clearing account are not subject to provisions of law requiring specific appropriations or other formal release by state officers of money in their custody.
5. A balance of money requisitioned from the unemployment trust fund which remains unclaimed or unpaid in the benefit account after the expiration of the period for which the sums were requisitioned shall be deducted from estimates for and may be used for the payment of benefits during succeeding periods, or, in the discretion of the department, shall be redeposited with the Secretary of the Treasury of the United States to the credit of this state’s account in the unemployment trust fund, as provided in AS 23.20.135 .
6. Money credited to the account of this state in the unemployment trust fund by the Secretary of the Treasury of the United States under 42 U.S.C. 1103 (§ 903, Social Security Act) may not be requisitioned from this state’s account or used except for the payment of benefits and for the payment of expenses incurred for the administration of this chapter. This money may be requisitioned under (b) of this section for the payment of benefits. This money may also be requisitioned and used for the payment of expenses incurred for the administration of this chapter but only under a specific appropriation by the legislature and only if the expenses are incurred and the money is requisitioned after the enactment of an appropriation law that
   1. specifies the purpose for which the money is appropriated and the amount appropriated;
   2. limits the period within which the money may be obligated to a period ending not more than two years after the date of the enactment of the appropriation law; and
   3. limits the amount that may be obligated during a fiscal year to an amount that does not exceed the amount by which the aggregate of the amounts credited to the account of this state under 42 U.S.C. 1103 (Sec. 903, Social Security Act) during that fiscal year and the 34 preceding fiscal years exceeds the aggregate of the amounts obligated for administration and paid out for benefits and charged against the amounts credited to the account of this state during those 35 fiscal years.
7. Amounts credited to this state’s account in the unemployment trust fund under 42 U.S.C. 1103 (Sec. 903, Social Security Act) that are obligated for administration or paid out for benefits shall be charged against equivalent amounts that were first credited and that are not already so charged. However, an amount obligated for administration during a fiscal year specified in this section may not be charged against any amount credited during a fiscal year earlier than the 34th preceding fiscal year.
8. Money appropriated under this section for the payment of expenses of administration shall be requisitioned as needed for the payment of obligations incurred under that appropriation and, upon requisition, shall be deposited in the employment security administration fund from which the payments shall be made.  Money so deposited shall, until expended, remain a part of the unemployment fund and, if it will not be expended, shall be returned promptly to the account of this state in the unemployment trust fund.

History. (§ 404 ch 5 ESLA 1955; am § 15 ch 169 SLA 1957; am §§ 2, 3 ch 123 SLA 1968; am § 6 ch 106 SLA 1969; am §§ 9 — 12 ch 9 SLA 1980; am §§ 3, 4 ch 100 SLA 1989; am §§ 12 — 14 ch 175 SLA 2004)

Administrative Code. —

For employment security, see 8 AAC 85.

Opinions of attorney general. —

A pay order drawn on the unemployment benefit account for the payment of unemployment benefits must bear the signature of the commissioner of administration since it would be a warrant within the meaning of subsection (d) of this section. July 13, 1966, Op. Att’y Gen. (decided prior to 2004 amendment).

The commissioner does not have to sign with his own hand each check or warrant issued against the benefit account; his signature may be printed on the appropriate check or warrant as it is now in the case of benefit checks. July 13, 1966, Op. Att’y Gen. (decided prior to 2004 amendment).

It is permissible to affix the signature of the commissioner of administration to the pay order card by means of a rubber validation stamp that would be used by the claims examiner at the time he countersigns for the commissioner of labor and issues the pay order card. July 13, 1966, Op. Att’y Gen. (decided prior to 2004 amendment).

For procedure for authorizing use of commissioner’s signature on pay order cards, see July 13, 1966, Op. Att’y Gen. (decided prior to 2004 amendment).

Sec. 23.20.150. Discontinuance of unemployment trust fund.

1. To the extent that AS 23.20.130 — 23.20.140 relate to the unemployment trust fund, they are operative only so long as the unemployment trust fund exists and so long as the Secretary of the Treasury of the United States of America maintains for the state a separate book account of all funds deposited in it by this state for benefit purposes, together with the state’s proportionate share of the earnings of the unemployment trust fund, from which no other state may make withdrawals.
2. If the unemployment trust fund ceases to exist, or a separate book account is no longer maintained, all money, property, or security in the fund which belongs to the unemployment compensation fund of the state shall be transferred to the treasurer of the unemployment compensation fund, who shall hold, invest, transfer, sell, deposit, and release the money, property, or security in a manner approved by the department in accordance with this chapter.  However, the money shall be invested in bonds or other interest-bearing obligations of the United States and the investments shall be made so that all the assets of the fund are readily convertible into cash when needed for the payment of benefits.  The treasurer may dispose of securities or other property belonging to the unemployment compensation fund only under the direction of the department.

History. (§ 405 ch 5 ESLA 1955)

Sec. 23.20.155. Employment security administration fund.

1. There is created a special fund in the state treasury known as the employment security administration fund.
2. All money deposited into this fund shall be continuously available to the department for expenditure in accordance with this chapter, and may not lapse at any time or be transferred to any other fund.  All money in this fund, except money received under AS 23.20.145(h) , which is received from the federal government or which is appropriated by the state for the purpose described in AS 23.20.100 shall be expended solely for the purpose and in the amount found necessary by the Secretary of Labor for administration of this chapter.
3. The fund consists of all money appropriated by this state; all money received from the federal government; all money received from another source for that purpose; money received from an agency of the United States or another state as compensation for services or facilities supplied to such agency; amounts received under a surety bond or insurance policy or from other sources for losses sustained by the employment security administration fund or by reason of damage to equipment or supplies purchased from money in the fund; and proceeds realized from the sale or disposition of equipment or supplies which are no longer necessary for the administration of this chapter. Notwithstanding any provision of this section, all money requisitioned and deposited in this fund under AS 23.20.145(h) shall remain part of the unemployment fund and shall be used only in accordance with the conditions specified in AS 23.20.145(f) — (h).
4. All money in this fund shall be deposited, administered, and disbursed, in the same manner and under the same conditions and requirements provided by law for other special funds in the state treasury.
5. The commissioner of revenue is liable on the official bond of the commissioner for the faithful performance of the commissioner’s duties in connection with the employment security administration fund.  This liability on the official bond exists in addition to liabilities on a separate bond. Money recovered on a surety bond for losses sustained by the employment security administration fund shall be deposited in that fund.

History. (§ 411 ch 5 ESLA 1955; am §§ 4, 5 ch 123 SLA 1968)

Sec. 23.20.160. Reimbursement of fund.

If money received from the Department of Labor under 42 U.S.C. 501 — 504 (Title III, Social Security Act), or money granted to this state under the Wagner-Peyser Act, as amended, or money made available by this state and matched by money granted to this state under the Wagner-Peyser Act, as amended, is found by the Secretary of Labor, because of any action or contingency, to have been lost or expended for a purpose other than or in an amount in excess of that found necessary by the Secretary of Labor for the proper administration of this chapter, it is the policy of the state that the money shall be replaced by money appropriated for the purpose from the general fund of the state to the employment security administration fund for expenditures as provided for in AS 23.20.155 . Upon receipt of notice of the finding by the Secretary of Labor, the department shall promptly report the amount required for replacement to the governor and the governor shall at the earliest opportunity submit to the legislature a request for the appropriation of the amount.

History. (§ 412 ch 5 ESLA 1955; am § 6 ch 123 SLA 1968)

Cross references. —

For Wagner-Peyser Act, see the cross references at AS 23.20.005 .

Sec. 23.20.165. Payment of contributions.

1. Contributions with respect to wages for employment accrue and are payable by an employer for each calendar year in which the employer is subject to this chapter.  Contributions become due and shall be paid by an employer to the department for the fund in accordance with regulations adopted by the department. An employer may not deduct contributions payable by the employer from the wages of an employee.
2. Contributions with respect to wages paid on or after January 1, 1955, for employment accrue and are payable by an individual who performs service in employment for each calendar year in which the services are subject to this chapter.
3. The contributions required from each individual, in accordance with regulations adopted by the commissioner, are payable, shall be deducted from the individual’s wages by the employer, and shall be held in trust by the employer for the commissioner until the employee contributions are required by regulation to be deposited with the commissioner. These funds are not subject to garnishment or attachment, and in the event of lien, judgment, or bankruptcy proceedings are not considered assets of the employer.  An employer who fails to make the deductions from the wages of employees is liable to the commissioner for the payment of the required contributions.  The contributions shall be collected from the employer in the manner provided for the collection of employer contributions.
4. If an employer converts to personal use or misappropriates funds so held in trust, the employer shall pay to the commissioner for deposit in the clearing account the amount converted or misappropriated, together with a penalty equal to five times that amount but not less than $25.  In addition, if the conversion or misappropriation is wilful, the employer is guilty of a misdemeanor, and upon conviction is punishable by a fine of not more than $200, or by imprisonment for not more than 60 days, or by both.
5. An employer shall maintain a record of the amount deducted from the wages of each employee and shall furnish a statement of the deductions to each employee at the times and in the manner the department prescribes by regulation.  A deduction may not be made from those wages paid to an employee during a calendar year which are in excess of the wages subject to contributions under AS 23.20.175 .  If an employee in the employ of two or more employers earns wages in one calendar year totaling more than the wages subject to contributions or if an employer through error makes a deduction and erroneously pays contributions on wages of an employee in excess of the wages subject to contributions during a calendar year, the amount of deductions in excess of those required by this chapter shall be refunded to the employee by the department upon application for them in accordance with regulations adopted by the department. Application must be made during the calendar year after the calendar year in which the deductions are made.

History. (§ 501 ch 5 ESLA 1955; am § 16 ch 169 SLA 1957; am § 7 ch 60 SLA 1960; am § 1 ch 156 SLA 1962; am § 2 ch 43 SLA 1973; am § 13 ch 9 SLA 1980; am § 1 ch 114 SLA 1981; am § 4 ch 115 SLA 1982)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.170. Rate of contributions.

1. [Repealed, § 80 ch 9 SLA 1980.]
2. An employer who is not entitled to a rate determination under AS 23.20.280 — 23.20.310 because the employer is ineligible under AS 23.20.281 shall pay contributions at a rate equal to the average industry tax rate as determined by the commissioner. Assignment by the commissioner of employers to industrial classification, for the purposes of this subsection, shall be to the industry group code specified in the most current version of the North American Industry Classification System, United States, in accordance with established classification practices found in the most current version of the North American Industry Classification System manual prepared by the United States Office of Management and Budget.
3. The standard rate of contributions with respect to employment is 5.4 percent of wages paid. Reductions from the standard rate may only be made under this section and AS 23.20.280 — 23.20.310 .

History. (§ 502 ch 5 ESLA 1955; am § 17 ch 169 SLA 1957; am § 8 ch 60 SLA 1960; am § 3 ch 43 SLA 1973; am §§ 14, 80 ch 9 SLA 1980; am § 2 ch 106 SLA 1984; am § 2 ch 51 SLA 2000)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.175. Base of contributions.

1. [Repealed, § 30 ch 100 SLA 1989.]
2. [Repealed, § 30 ch 100 SLA 1989.]
3. For the purposes of AS 23.20.165 and 23.20.170 , wages do not include that part of remuneration paid during any calendar year to an individual by an employer or by a predecessor of the employer that exceeds 75 percent of the average annual wage, as defined in AS 23.20.520 , in Alaska for the preceding 12-month period ending June 30 computed to the nearest multiple of $100.

History. (§ 503 ch 5 ESLA 1955; am § 18 ch 169 SLA 1957; am § 9 ch 60 SLA 1960; am §§ 4, 5 ch 43 SLA 1973; am §§ 15, 16 ch 9 SLA 1980; am § 30 ch 100 SLA 1989; am § 32 ch 41 SLA 2009)

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, in (c), deleted “after December 31, 1982” following “AS 23.20.165 and 23.20.170 ”.

Sec. 23.20.180. Records and analysis of experience with unemployment risk.

For each calendar year the department shall maintain separate accounts for each employer and claimant to obtain facts and studies upon which the legislature may determine whether an experience rating system should be adopted to require contributions from employers based upon their experience with unemployment risk, and, if so, the most equitable system for accomplishing this purpose consistent with the solvency of the unemployment compensation fund.

History. (§ 504 ch 5 ESLA 1955; am § 19 ch 169 SLA 1957)

Sec. 23.20.185. Interest on past due contributions.

1. If contributions are not paid on the date on which they are due, the amount remaining unpaid bears interest at the rate of 12 percent per year from the due date until payment plus accrued interest is received by the department.  Interest collected under this section shall be deposited in the clearing account of the unemployment compensation fund.
2. Interest does not accrue on contributions from an estate in the hands of a receiver, executor, administrator, trustee in bankruptcy, common law assignee, or other liquidating officer after the date when the officer qualifies.  However, contributions accruing with respect to employment of a person by the officer are due and draw interest in the same manner as contributions due from other employers.
3. Payments of contributions erroneously paid to an unemployment compensation fund of another state which should have been paid to this state and which are refunded by the other state and paid by the employer to this state shall be considered paid to this state at the date of payment of the other state.
4. Interest collected under this section shall periodically be transferred from the clearing account to the training and building fund.

History. (§ 511 ch 5 ESLA 1955; am § 2 ch 106 SLA 1969; am §§ 17, 18 ch 9 SLA 1980)

Sec. 23.20.190. Penalty for failure to file reports.

1. An employer required to pay contributions under the provisions of AS 23.20.165 who fails to file a contribution report and wage schedule on the date it is due is subject to a penalty, to be assessed and collected in the same manner as contributions.  If the report is filed within 30 days of the date it is due, the penalty is five percent of the contributions due. For each additional 30-day period or its fraction, the penalty is an additional five percent of the contributions due.  However, the penalty may not exceed 25 percent of the contributions due in the aggregate and may not be less than $10 for each reporting period.
2. If a report is filed after it is due and it is shown to the satisfaction of the department that the failure to file was due to a reasonable cause, a penalty may not be assessed or collected.
3. Penalties collected under this section shall periodically be transferred from the clearing account to the training and building fund.
4. An employer who has elected to make reimbursement payments under AS 23.20.277 who fails to file a contribution report and wage schedule on the date it is due is subject to a penalty, to be assessed and collected in the same manner provided under this section for failure to file a contribution report and wage schedule.  If the report is filed not later than 30 days after the date it is due, the penalty is one-tenth of one percent of the total wages paid for the quarter.  For each additional 30-day period or its fraction, the penalty is an additional one-tenth of one percent of the total wages paid for the quarter. However, the penalty may not exceed one-half of one percent of the total wages paid for the quarter in the aggregate and may not be less than $10 for each reporting period.
5. The department may require an employer who fails to file a contribution report and wage schedule on the date it is due to file a monthly contribution report and wage schedule, with payment, not later than 30 days after the close of each month.  A decision under this subsection shall be reviewed annually under regulations adopted by the department.  The monthly contribution report and wage schedule is subject to the same interest and penalty provisions as provided in this section and in AS 23.20.185 .

History. (§ 512 ch 5 ESLA 1955; am § 3 ch 106 SLA 1969; am §§ 19 — 21 ch 9 SLA 1980)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.195. Penalty for nonpayment of contribution.

1. If the contributions are unpaid after 30 days from the date of mailing or personal delivery of a written demand for payment, the department may assess and collect in the same manner as contributions a penalty equal to the greater of 10 percent of the contributions due or $10.
2. This penalty does not attach if within 30 days after mailing or personal delivery of the demand, arrangements for payments are made with the department, and payment is made in accordance with the arrangements.
3. Penalties collected under this section shall periodically be transferred from the clearing account to the training and building fund.

History. (§ 513 ch 5 ESLA 1955; am § 4 ch 106 SLA 1969; am § 22 ch 9 SLA 1980; am §§ 60, 61 ch 59 SLA 1982; am § 5 ch 100 SLA 1989)

Collateral references. —

Construction, application and effect, with respect to withholding, social security and unemployment compensation taxes, of statutes imposing penalties for tax evasion or default. 22 ALR3d 8.

Sec. 23.20.200. Lien.

1. A claim for contributions, including interest and penalties, not paid when due is a lien in favor of the state against all the real and personal property of the employer.
2. The claim becomes a lien when the department records a notice of the lien with the recording officer of the recording district in which the property is located. The claim becomes a lien on a motor vehicle when the department files a notice of the lien in the office of the commissioner of administration. Filing or recording of the notice of lien is constructive notice of the lien against the property described in the notice to creditors of the owner, and to subsequent purchasers and encumbrancers.
3. [Repealed, § 80 ch 9 SLA 1980.]
4. The department may release a notice of lien by filing or recording a certificate of release in the manner prescribed for the filing or recording of a notice of lien.  The department may not file or record a certificate of release until the amount of contributions, including interest, and penalties and costs, is paid, or until it receives assurance of payment which it considers adequate.

History. (§ 514 ch 5 ESLA 1955; am § 1 ch 37 SLA 1963; am § 1 ch 67 SLA 1967; am § 80 ch 9 SLA 1980; am § 27 ch 21 SLA 1985; am E.O. No. 99 § 19 (1997))

Revisor’s notes. —

Minor word changes related to the recording of documents were made in subsections (b) and (d) of this section in 1988 under § 42, ch. 161, SLA 1988.

Sec. 23.20.205. Notice of assessment, distraint, seizure, and sale.

1. If the department finds that a contribution including interest or penalty on the contribution is delinquent, the department may issue a notice of assessment specifying the amount due and may serve it on the delinquent employer. The notice must inform the employer of the department’s rights under (c) of this section. A peace officer or an authorized representative of the department may serve the notice personally or the department may mail the notice by certified or registered mail with return receipt requested.
2. If the notice is served by mail the notice must be deposited in the post office, addressed to the delinquent employer at the employer’s last address of record and the postage paid. The date of service is considered to be the day of delivery shown on the delivery receipt.  However, if it appears the addressee is deliberately avoiding service, then the date of service is the day of mailing.
3. Unless an appeal is filed under AS 23.20.220 , if the amount assessed is not paid within 30 days after personal service or mailing of the notice as required by (a) of this section, the department may collect the amount stated in the assessment by the distraint, seizure, and sale of the property, goods, chattels, and effects of the delinquent employer. Goods and property exempt from execution under the laws of this state are exempt from distraint and sale under this section.

History. (§ 515 ch 5 ESLA 1955; am § 20 ch 169 SLA 1957; am § 23 ch 9 SLA 1980; am §§ 6, 7 ch 100 SLA 1989)

Sec. 23.20.210. Inventory and sale.

1. Upon making a distraint, the department shall seize the property and make an inventory of it.  The department shall mail or personally deliver a copy of the inventory to the owner of the property, and shall specify the time and place when the property is to be sold. Notice specifying the property to be sold and the time and place of sale shall be posted in at least two public places in the recording district of the judicial district where the seizure is made.  The time of sale may not be less than 20 nor more than 30 days from the date of posting the notice.  The department may adjourn the sale from time to time but adjournment may not exceed 90 days in all.  The department or its authorized representative shall conduct the sale.  The property may be sold by parcel or lot at a public auction.  The department may set a minimum price to include the expenses of making the levy and advertising the sale, and if the amount bid for the property at the sale is not equal to the minimum price fixed by the department, the department or its representative may declare the property purchased by the department for the minimum price.  The department shall credit the delinquent account with the amount received at the sale for the property after defraying the costs of distraint, seizure, and sale.  The department may sell the property acquired by it at public or private sale, and shall deposit the amount received in the unemployment compensation fund.
2. Upon sale of the property, the department shall issue a bill of sale or a deed to the purchaser. The bill of sale or the deed is prima facie evidence of the regularity of the proceedings of the department in making the sale.  The bill of sale or the deed transfers to the purchaser all right, title, and interest of the delinquent employer in the property. The department shall first apply the proceeds of the sale toward reimbursement of the administration fund for the costs of distraint, seizure, and sale and the balance toward satisfaction of the delinquent account. The department shall refund the excess to the delinquent employer.

History. (§ 516 ch 5 ESLA 1955)

Sec. 23.20.215. Notice and order to withhold and deliver.

1. The department may issue a notice and order to withhold and deliver property of any kind to a person or a political subdivision or department of the state when (1) the department has reason to believe that the person, political subdivision, or department possesses property which is due, owing, or the property of another person; and (2) notice and order of assessment has been served, at least 30 days before the issuance of the notice and order to withhold and deliver.
2. A peace officer or an authorized representative of the department may serve the notice to withhold and deliver.  The person, political subdivision, or department upon whom service is made shall answer the notice within 10 days.
3. If the person, political subdivision, or department possesses property, credits, or money subject to the claim of the department, it shall deliver the property to the department immediately upon demand.  The department shall hold the property in trust for application on the indebtedness involved or for return, without interest, in accordance with final determination of liability or nonliability, or, in the alternative, there shall be furnished a sufficient bond satisfactory to the department conditioned upon final determination of liability.
4. If a person fails to answer the order to withhold and deliver within the time prescribed, the superior court in the judicial district in which the order is served may enter a judgment by default against the person for the full amount claimed by the department in the notice to withhold and deliver, together with costs.

History. (§ 516.1 ch 5 ESLA 1955, added by § 21 ch 169 SLA 1957)

Sec. 23.20.220. Appeals.

1. When a notice of assessment is delivered or mailed to a delinquent employer, the employer may within 30 days file an appeal in writing with the department, stating that the assessment is unjust or incorrect and requesting a hearing on it. The period for filing an appeal may be extended for a reasonable period for good cause. The appeal must set out the reasons the assessment is objected to and the amount of contributions that the employer admits is due, and must be accompanied by a bond or deposit of other security in the amount of the assessment to ensure collection. The department may waive the security requirement if the employer submits proof of solvency or reasonable assurance, as prescribed by regulations, that the contributions, interest, and penalties due are not in jeopardy. If the employer fails to provide the required security, the collection under AS 23.20.205(c) is not stayed. The department shall adopt regulations for procedures for an appeal under this subsection.
2. If the appeal is accompanied by the required security or the department has waived the security requirement, filing an appeal on a disputed assessment with the department stays the sale provided for in AS 23.20.210 until a final decision on the assessment is made. However, the filing of an appeal does not affect the right of the department to perfect a lien as provided in AS 23.20.200 .
3. After granting the appellant reasonable opportunity for fair hearing, the department shall make a decision on the appeal. The department’s decision is final unless the appellant initiates a proceeding for judicial review in the manner provided by AS 23.20.445 .
4. When an order and notice of assessment becomes final, the superior court shall upon application of the department enter a judgment on the amount provided for in the order and notice of assessment.  The judgment has the same effect as a judgment entered in a civil action.

History. (§ 517 ch 5 ESLA 1955; am § 22 ch 169 SLA 1957; am § 24 ch 9 SLA 1980; am §§ 8 — 10 ch 100 SLA 1989)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.225. Adjustments and refunds.

1. Within two years after contributions or interest are erroneously paid, an employer who has paid such contributions or interest may file a written petition with the department for an adjustment of the payment as an offset against subsequent contribution payments, or for a refund of the payment when the adjustment as an offset cannot be made.  If the department upon ex parte consideration determines that the contributions or interest were erroneously collected, it shall allow the employer to make an adjustment without interest. For like cause and within the same period, adjustment or refund may be made on the department’s own motion.
2. If the department finds upon ex parte consideration that it cannot determine that an adjustment or refund should be allowed, it shall deny the application and notify the employer in writing. Within 30 days after notification is mailed or delivered to the employer, whichever happens first, the employer may file a petition in writing with the department for a hearing.  However, the right to a hearing does not apply when an assessment has been appealed from and has become final as provided in AS 23.20.220 . The petition shall set forth the reasons for granting a hearing and the amount which the petitioner believes should be adjusted or refunded.  If a petition is not filed within the time prescribed, the determination of the department as stated in the notice is final.
3. After granting the petitioner reasonable opportunity for fair hearing, the department shall make a decision on the petition.  The decision is final unless the petitioner initiates a proceeding for judicial review in the manner provided by AS 23.20.445 .
4. If not later than two years after the date of payment of interest or penalty an employer who has made such a payment determines that it was made erroneously, the employer may file a written petition with the department to have any subsequent amount of interest or penalties which has been, or might be, assessed against the employer, adjusted by the amount of the erroneous payment, or, if it appears that this adjustment would not be feasible within a reasonable time, the employer may request a refund of the erroneous payment.  If the department upon ex parte consideration determines that the payment of interest or penalties, or any portion of it, was erroneous, it shall allow such an employer to make an adjustment in an amount equal to that erroneously paid, without interest, in connection with any subsequent interest or penalty payment which may be due, or, if this adjustment cannot be made, the department shall refund the amount, without interest, from the fund into which the payment was deposited or transferred.  Refunds of interest and penalties erroneously collected may be made from the clearing account of the unemployment compensation fund or from the training and building fund if they were transferred to and deposited in that fund.  Interest and penalty payments may not be refunded from the unemployment compensation fund. If an employer to whom a refund is due does not file a petition for the refund, the department may make an adjustment or refund of interest or penalties on its own initiative for like cause and subject to the same conditions.
5. The department shall adopt regulations providing for the disposition of excess contributions paid to the unemployment compensation fund under AS 23.20.130 after notice and opportunity for hearing.

History. (§ 518 ch 5 ESLA 1955; am §§ 7, 8 ch 106 SLA 1969; am §§ 25, 26 ch 9 SLA 1980; am § 11 ch 100 SLA 1989; am § 4 ch 130 SLA 2004)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.230. Arbitrary reports.

If an employing unit fails or neglects to make or file a report or return required by this chapter, the department, upon the basis of knowledge available to it, may arbitrarily make a report on behalf of the employing unit. The report is considered prima facie correct.

History. (§ 519 ch 5 ESLA 1955)

Sec. 23.20.235. Jeopardy assessment.

If the department has reason to believe that an employer is insolvent or if the collection of contributions accrued will be jeopardized by delaying collection, the department may make an immediate assessment and may proceed to enforce collection immediately. However, interest does not begin to accrue upon the contribution until the date when the contribution normally becomes delinquent.

History. (§ 520 ch 5 ESLA 1955)

Sec. 23.20.240. Collection of delinquent contributions.

1. If after notice an employer defaults in the payment of contribution or interest, the amount due may be collected by a person authorized by law and authorized by the department, by civil action in the name of the state, or by both methods. The department shall include in the amount due the fees or costs charged the department by the person for the collection of the delinquent amount. An employer who is liable shall pay the cost of the collection, including collection fees charged, and the costs of legal action.
2. A lien created by this chapter may be foreclosed by decree of the court in the action.
3. The court shall hear a civil action brought under this section to collect contributions or interest at the earliest possible date and the action is entitled to preference on the calendar of the court over all other civil actions except petitions for judicial review under this chapter and cases arising under the workers’ compensation laws of the state.
4. The courts in this state shall, in the manner provided in this section, entertain actions to collect contributions or interest for which liability has accrued under the employment security law of another state if the other state has a similar provision for actions to collect contributions due this state in its employment security law.
5. The attorney general may commence action in this state as agent for and on behalf of any other state to enforce judgments and liabilities for unemployment insurance contributions, penalties, interest, and benefit overpayments due such state which extends a like comity to this state if the requesting state agrees to pay the costs which may be assessed by the court against the plaintiff.
6. In this section, “employer” as defined in AS 23.20.520 also includes an officer or employee of a corporation, a member, manager, or employee of a limited liability company, or a member or employee of a partnership, including a limited partnership and a limited liability partnership, who, as an officer, employee, manager, or member, is under a duty to pay the contributions as required by (a) of this section.

History. (§ 521 ch 5 ESLA 1955; am § 1 ch 23 SLA 1969; am § 27 ch 9 SLA 1980; am § 12 ch 100 SLA 1989; am § 5 ch 130 SLA 2004)

Sec. 23.20.242. Appeals by officer, manager, member, or employee.

The department shall permit each officer or employee of a corporation, member, manager, or employee of a limited liability company, or member or employee of a partnership, including a limited partnership and a limited liability partnership, who is required to pay the contributions and interest owed by the corporation, limited liability company, or partnership, including the limited partnership and the limited liability partnership, under AS 23.20.165 — 23.20.278 to appeal individually their duty to pay under those sections.

History. (§ 13 ch 100 SLA 1989; am § 6 ch 130 SLA 2004)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.245. Remedies cumulative.

Remedies given to the state under this chapter for the collection of contributions and interest are cumulative. An action taken by the department may not be construed to be an election on the part of the state to pursue one remedy to the exclusion of another.

History. (§ 522 ch 5 ESLA 1955)

Collateral references. —

Repayment of unemployment compensation benefits erroneously paid. 90 ALR3d 987.

Sec. 23.20.247. Employer’s security for delinquent contributions.

1. If the department determines that an employer has been delinquent in paying contributions owed to the fund for two or more calendar quarters, the department may require an employer to deposit and keep on deposit with the department a sum equal to the contributions payable to the fund for the four completed calendar quarters immediately preceding the delinquency. If the employer does not have four completed payroll quarters immediately before the delinquency, the department shall estimate the employer’s annual contributions, based on contributions payable for the completed payroll quarters. In lieu of the deposit, the department may accept a bond or other security equal in value to the required deposit. The deposit, bond, or other security accepted by the department does not relieve the employer from making contributions to the fund or paying delinquent contributions, interest, and penalties as provided in this chapter. After notice and opportunity for hearing related to the application of the security, the department may immediately apply all or part of the deposit, bond, or other approved security to the employer’s delinquent contributions, interest, or penalties arising under this chapter.
2. Unless precluded by other law, the deposit, bond, or other security accepted by the department shall take priority over all other liens, claims, or encumbrances and shall be exempt from any process, attachment, garnishment, or execution.
3. If an employer ceases to be an employer subject to this chapter, the department shall, upon receipt of all payments due the fund, refund to the employer the deposits remaining to the employer’s credit and shall cancel any bond or other security accepted by the department under this section. The department may return, in whole or part, the deposit, bond, or other security accepted by the department under this section to the employer if the employer is current in paying contributions under this section for eight consecutive quarters.

History. (§ 4 ch 43 SLA 1996)

Sec. 23.20.248. Injunctive relief.

1. If an employer does not deposit and keep on deposit the security required by the department under AS 23.20.247 , the department, through the attorney general, may bring an action in superior court to enjoin the employer from operating any business as an employer within the state until
   1. the employer is current on all final assessments, including interest and penalties made under this chapter; and
   2. if requested, the employer deposits and keeps on deposit the security described in AS 23.20.247 to protect against future failures and to comply with this chapter.
2. The department may not seek injunctive relief under (a) of this section until the department has given the employer at least 30 days to comply with an order relating to security under AS 23.20.247 .
3. The department may not be required to post a bond for injunctive relief under this section.

History. (§ 4 ch 43 SLA 1996)

Sec. 23.20.250. Lien upon distribution or assignment of assets.

1. If the assets of an employer are distributed under a court order, including a receivership, probate, legal dissolution, or a similar proceeding, or in the case of an assignment for the benefit of creditors, a composition, or a similar proceeding, contributions which are or which become due are a lien upon all the assets of the employer. The lien is prior to all other liens or claims except a prior tax lien, a lien filed or recorded under AS 23.20.200 , or a claim for remuneration of service of not more than $250 to each claimant, earned within six months before the starting of the proceeding.
2. The existence of a condition of insolvency or the institution of a judicial proceeding for legal dissolution or of a proceeding for distribution of assets causes the lien to attach without action on behalf of the department or the state.
3. In the event of an employer’s adjudication in bankruptcy, judicially-confirmed extension proposal, or composition, under 11 U.S.C. (Federal Bankruptcy Act), contributions that are or become due are entitled to the priority provided under that Act, as amended.

History. (§ 523 ch 5 ESLA 1955; am § 28 ch 21 SLA 1985)

Revisor’s notes. —

Minor word changes related to the recording of documents were made in subsection (a) of this section in 1988 under § 42, ch. 161, SLA 1988.

Sec. 23.20.255. Compromise of contributions.

1. The department may compromise a claim for contributions, interest, or penalties existing or arising under this chapter in any case where collection of the full claim would result in the insolvency of the employing unit or individual from whom the contributions, interest, or penalties are claimed.
2. If the department compromises a claim, there shall be filed with the department a statement of the amount of contributions, interest, and penalties imposed by law and claimed due, a complete record of the compromise agreement, and the amount actually paid in accordance with the terms of the compromise agreement.
3. A person who, in connection with a compromise or offer of compromise, wilfully conceals from an officer or employee of the state property belonging to an employing unit or individual liable for contributions, interest, or penalties, or receives, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement under oath relating to the financial condition of the employing unit or individual liable for contributions, upon conviction, is punishable by a fine of not more than $5,000, or by imprisonment for not more than one year, or by both.
4. If the department accepts a compromise, the compromise is final and conclusive at the time stated in it or at the time agreed to, and, except upon showing of fraud, malfeasance, misrepresentation of a material fact, or failure to meet the terms of the compromise, the case may not be reopened as to the matters agreed upon.

History. (§ 524 ch 5 ESLA 1955)

Sec. 23.20.260. Liability of successor employer.

1. The contributions required by this chapter are a lien upon the property of an employer subject to the provisions of the chapter who sells out the business or stock of goods, who quits business, or whose property used or acquired in the business is sold under voluntary conveyance or under foreclosure, execution or attachment, distraint, or other judicial proceeding.
2. The employer shall file the reports which the department prescribes and pay the contributions required by this chapter with respect to wages payable for employment up to the date of the occurrence of each contingency.
3. The purchaser or successor in business shall withhold enough purchase money to cover the amount of contributions due and unpaid until the employer produces a receipt from the department showing that the contributions have been paid, or a certificate that no contributions are due.  If the purchaser or successor fails to withhold purchase money as provided, and the contributions are not paid within 10 days, the purchaser or successor is personally liable for the payment of the contributions accrued and unpaid on account of the operation of the business by the former owner.

History. (§ 525 ch 5 ESLA 1955)

Sec. 23.20.265. Liability of contractor and principal for contributions.

1. An employing unit which contracts with or has under it a contractor or subcontractor who is an employer under the provisions of this chapter may not make a payment to the contractor or subcontractor for a debt due until the contractor or subcontractor has paid or furnished a sufficient bond acceptable to the department for payment of contributions, including penalty and interest, due or to become due for personal services which have been performed by individuals for the contractor or subcontractor arising during the course of the employment of the contractor or subcontractor by the employing unit.
2. Failure to comply with this section makes the employing unit directly liable for the contributions and interest and the department has the remedies of collection against the employing unit under this chapter as though the services in question were performed directly for the employing unit.
3. Upon request, the department may notify an employing unit of its contractor’s or subcontractor’s liability for contributions, interest, and penalties under this chapter to allow the employing unit to comply with this section.

History. (§ 526 ch 5 ESLA 1955; am § 1 ch 97 SLA 1959; am § 5 ch 43 SLA 1996)

Opinions of attorney general. —

The Employment Security Division may assess the prime contractor for contributions and interest owing by a bankrupt subcontractor, if the prime contractor has not complied with the requirements of this section. October 11, 1984 Op. Att’y Gen.

The Department of Labor may hold an employee-leasing company and the actual business liable for Employment Security Division taxes. July 16, 1987 Op. Att’y Gen.

Sec. 23.20.270. Limitation of actions and uncollectible accounts.

1. The department shall begin action for the collection of contributions, including interest and penalties, imposed by this chapter by assessment or suit within five years after a return is filed.  A proceeding for the collection of these amounts may not be begun after the expiration of this period. In case of a false or fraudulent return with intent to evade contributions, or in the event of a failure to file a return, the contributions may be assessed, or a proceeding in court for the collection of the contributions may be begun, at any time.
2. The department may charge off as uncollectible and no longer an asset of the unemployment compensation fund a delinquent contribution after five years from the date of delinquency, if the department is satisfied that there are no available means by which the contribution may be collected.

History. (§ 527 ch 5 ESLA 1955, added by § 23 ch 169 SLA 1957)

Opinions of attorney general. —

A notice of assessment filed within the five-year period stops the running of the statute. November 22, 1966 Op. Att’y Gen., aff’d February 29, 1984 Op. Att’y Gen.

Sec. 23.20.275. Service of process.

Process for assessment and collection of contributions may be served inside and outside the state. In addition to any other method of service provided for in this chapter, service may be made by certified or registered mail.

History. (§ 528 ch 5 ESLA 1955, added by § 10 ch 60 SLA 1960)

Sec. 23.20.276. Financing benefits paid to employees of nonprofit organizations; election.

1. Benefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this section and AS 23.20.277 . For the purposes of this section and AS 23.20.277 , a nonprofit organization is an organization, or group of organizations, described in 26 U.S.C. 501(c)(3) (Internal Revenue Code) and exempt from income tax under 26 U.S.C. 501(a).
2. A nonprofit organization described in this section that, under AS 23.20.525(a)(4) , is, or becomes, subject to this chapter shall pay contributions under the provisions of AS 23.20.165 , unless it elects, in accordance with this section, to pay to the department for the unemployment compensation fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, that is attributable to service in the employ of the nonprofit organization, to individuals for weeks of unemployment that begin during the effective period of the election.
3. A nonprofit organization which is, or becomes, subject to this chapter on January 1, 1972, may elect to become liable for payments in place of contributions for a period of not less than one taxable year beginning with January 1, 1972, if it files with the department a written notice of its election within the 30-day period immediately following January 1, 1972, or within a like period immediately following the date of enactment of this subsection, whichever occurs later.
4. A nonprofit organization which becomes subject to this chapter after January 1, 1972, may elect to become liable for payments in place of contributions for a period of not less than 12 months beginning with the date on which this subjection begins by filing a written notice of its election with the department not later than 30 days immediately following the date of the determination of the subjection.
5. A nonprofit organization which makes an election in accordance with (c) or (d) of this section will continue to be liable for payments in place of contributions until it files with the department a written notice terminating its election.  The notice must be filed not later than 30 days before the beginning of the taxable year for which the termination will first be effective.
6. A nonprofit organization which has been paying contributions under this chapter for a period after January 1, 1972, may change to a reimbursable basis by filing with the department not later than 30 days before the beginning of any taxable year a written notice of election to become liable for payments in place of contributions.  This election is not terminable by the organization for that and the next taxable year.
7. The department may for good cause extend the period within which a notice of election or a notice of termination must be filed and may permit an election to be retroactive in effect but not any earlier than with respect to benefits paid after December 31, 1971.
8. The department, in accordance with regulations it adopts, shall notify each nonprofit organization of any determination which it may make of its status as an employer and of the effective date of any election which it makes and of any termination of election. These determinations are subject to reconsideration, appeal, and review in accordance with the provisions of AS 23.20.410 — 23.20.470 .

History. (§ 3 ch 106 SLA 1971; am § 33 ch 41 SLA 2009)

Administrative Code. —

For employment security, see 8 AAC 85.

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, in (b) substituted “AS 23.20.525(a)(4) ” for “AS 23.20.525(a)(6) ”, deleted “on or after January 1, 1972,” following “subject to this chapter”, and made stylistic changes.

Sec. 23.20.277. Reimbursement payments by nonprofit organizations, governmental entities, and federally recognized tribes.

1. Payments in place of contributions by nonprofit organizations shall be made in accordance with the provisions of this section including either (b) or (c) of this section.
2. At the end of each calendar quarter, or at the end of any other period as determined by the department, the department shall bill each government entity, federally recognized tribe, nonprofit organization, or group of nonprofit organizations that has elected to make payments in place of contributions, for benefits paid during the quarter or other prescribed period that are attributable to service in the employ of the government entity, federally recognized tribe, nonprofit organization, or group. In the case of nonprofit organizations and groups of nonprofit organizations, the amount billed is an amount equal to the full amount of regular benefits plus extended benefits that are not reimbursable by the federal government. In the case of a government entity or federally recognized tribe, the amount billed is an amount equal to the full amount of the regular benefits plus the full amount of the extended benefits paid.
3. Each nonprofit organization that has elected payments in place of contributions may request permission to make payments as provided in this subsection.  This method of payment becomes effective upon approval by the department.  At the end of each calendar quarter or at the end of any other period as determined by the department, the department shall bill each nonprofit organization for an amount representing one of the following:
   1. that percentage of its total payroll for the immediately preceding calendar year as the department determines; the determination shall be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year;
   2. for any organization that did not pay wages throughout the four calendar quarters of the preceding calendar year, that percentage of its payroll during the year as the department determines.
4. At the end of each taxable year, the department may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.
5. At the end of each taxable year, the department shall determine whether the total of payments for the year made by a nonprofit organization or group of nonprofit organizations is less than, or in excess of, the total amount of regular benefits plus extended benefits not reimbursable by the federal government paid to individuals during the taxable year based on wages attributable to service in the employ of the nonprofit organization or group. In the case of a government entity or federally recognized tribe that has elected to make payments under this section, the department shall determine whether the total of payments for the year is less than, or in excess of, the total amount of regular benefits plus the total amount of extended benefits as determined in this subsection. If total payments for the taxable year are less than the amount so determined, the employer is liable for payment of the unpaid balance to the fund in accordance with (f) of this section. If the total payments exceed the amount so determined for the taxable year, all or part of the excess may, at the discretion of the department, be refunded from the fund or retained in the fund as part of the payments that may be required for the next taxable year.
6. Payment of any bill rendered under (b) or (c) of this section shall be made not later than 30 days after the bill was mailed to the last known address of the nonprofit organization, group of nonprofit organizations, government entity, or federally recognized tribe or was otherwise delivered to it, unless there has been an application for review and redetermination in accordance with (h) of this section.
7. Payments made by any nonprofit organization, group of nonprofit organizations, government entity, or federally recognized tribe under the provisions of this section may not be deducted or deductible, in whole or in part, from the remuneration of an individual in the employ of the organization, group of organizations, government entity, or federally recognized tribe; nor may contributions be required of an employee on the basis of wages paid to that employee for services performed by the employee in employment for a nonprofit organization, group of nonprofit organizations, government entity, or federally recognized tribe that makes an election to become liable for payments in place of contributions under AS 23.20.276 — 23.20.278 , and the wages are paid during the period of election.
8. The amount due, specified in a bill from the department, is conclusive on the employer unless, not later than 30 days after the bill was mailed to its last address of record or otherwise delivered to it, the employer files an application for redetermination by the department, setting out the grounds for the application. The department shall promptly review and reconsider the bill and shall issue a redetermination in any case in which an application for redetermination has been filed. Any redetermination is conclusive on the employer unless, not later than 30 days after the redetermination was mailed to its last address of record or otherwise delivered to it, the employer files an appeal to the commissioner, setting out the grounds for the appeal. Proceedings on appeal to the commissioner from the amount of a bill rendered under this subsection or a redetermination of the amount shall be in accordance with AS 23.20.410 — 23.20.470 .
9. Past due payments of amounts in place of contributions are subject to the same interest and penalties that, under AS 23.20.185 — 23.20.195 , apply to past due contributions.
10. At the discretion of the department, a nonprofit organization, group of nonprofit organizations, government entity, or federally recognized tribe that elects to become liable for payments in place of contributions under AS 23.20.276 — 23.20.278 is required, within 30 days after the effective date of its election, to execute and file with the department a surety bond approved by the department or it may elect instead to deposit with the department money or securities. The amount of the bond or deposit shall be determined by the department in accordance with regulations adopted by the department.
11. If a nonprofit organization, group of nonprofit organizations, government entity, or federally recognized tribe is delinquent in making payments in place of contributions as required under this section and after having been given notice, the department, after giving notice to the employer who is delinquent, shall terminate that employer’s election to make payments in place of contributions until a time provided by regulations adopted by the department.
12. Each employer that is liable for payments in place of contributions shall pay to the department for the fund the amount of regular benefits plus the extended benefits not reimbursable by the federal government paid to individuals that are attributable to service in the employ of that employer. However, a government entity or federally recognized tribe that has elected to make payments under this section is liable for the amount of regular benefits plus the full amount of extended benefits that are attributable to service in the employ of that entity or tribe. If benefits paid to an individual are based on wages paid by more than one employer and one or more of these employers is liable for payments in place of contributions, the amount payable to the fund by each employer that is liable for payments shall be determined by the department in accordance with regulations adopted by the department.
13. The department may not approve an election to make payments in place of contributions if, at the time of the election, a nonprofit organization, group of nonprofit organizations, government entity, or federally recognized tribe is delinquent in making contributions under AS 23.20.165 .

History. (§ 4 ch 106 SLA 1971; am § 3 ch 122 SLA 1977; am §§ 28, 29 ch 9 SLA 1980; am §§ 14 — 16 ch 100 SLA 1989; am § 6 ch 43 SLA 1996; am §§ 2 — 10 ch 27 SLA 2009; am § 34 ch 41 SLA 2009)

Cross references. —

For legislative findings and intent in connection with the amendments to this section made by §§ 2 — 10, ch. 27, SLA 2009, see § 1, ch. 27, SLA 2009, in the 2009 Temporary and Special Acts.

Administrative Code. —

For employment security, see 8 AAC 85.

Effect of amendments. —

The first 2009 amendment, effective May 26, 2009, added “federally recognized tribe” or similar, “group of nonprofit organizations”, and “government entity” throughout the section; in subsections (g) and (j), substituted “AS 23.20.276 — 23.20.278 ” for “AS 23.20.276 ” following “in place of contributions under”; in subsection (h), substituted “employer” for “organization” four times; in subsection (k), substituted “and after having been given notice, the department, after giving notice to the employer who is delinquent, shall terminate that employer’s election to make payments in place of contributions until a time provided by regulations adopted by the department” for “the department may terminate that organization’s election to make payments in place of contributions as of the beginning of the next taxable year, and the termination is effective for that and the next taxable year”; added subsection (m); and made related stylistic changes.

The second 2009 amendment, effective June 21, 2009, in (c), deleted (c)(1), which read, “for 1972, .25 percent of its total payroll for 1971;”, redesignated (c)(2) as (c)(1) and (c)(3) as (c)(2), and, in (c)(1), deleted the introductory language, “for years after 1972,”; made a stylistic change.

Sec. 23.20.278. Financing benefits paid to employees of the state, political subdivisions of the state, or a federally recognized tribe.

A federally recognized tribe, a political subdivision, or a department, division, or other agency of the state subject to this chapter, under AS 23.20.525(a)(12) , shall pay contributions under the provisions of AS 23.20.165 , unless it elects to reimburse the department for the unemployment compensation fund according to the provisions applicable to nonprofit organizations, government entities, or federally recognized tribes under AS 23.20.276 and 23.20.277 .

History. (§ 5 ch 106 SLA 1971; am § 4 ch 122 SLA 1977; am § 11 ch 27 SLA 2009; am § 35 ch 41 SLA 2009)

Revisor’s notes. —

The contingent amendment to this section made under sec. 33, ch. 122, SLA 1977 never took effect and was repealed by sec. 82, ch. 41, SLA 2009.

In 2009, to reconcile the amendments made by § 11, ch. 27, SLA 2009 and §§ 35 and 38, ch. 41, SLA 2009, a reference to “ AS 23.20.525(a)(12) ” was used instead of “ AS 23.20.525(a)(14) ”.

Cross references. —

For legislative findings and intent in connection with the 2009 amendment of this section, see § 1, ch. 27, SLA 2009, in the 2009 Temporary and Special Acts.

Effect of amendments. —

The first 2009 amendment, effective May 26, 2009, substituted “political subdivisions of the state, or a federally recognized tribe” for “and its political subdivisions” in the catchline; added “federally recognized tribe, a” at the beginning; substituted “AS 23.20.525(a)(14) ” for “AS 23.20.525(a)(4) and (14)” following “subject to this chapter, under”; and added “, government entities, or federally recognized tribes” following “applicable to nonprofit organizations”.

The second 2009 amendment, effective June 21, 2009, substituted “AS 23.20.525(a)(12) ” for “AS 23.20.525(a)(4) and (14)” preceding “shall pay contributions”.

Sec. 23.20.279. Prohibition on relief of certain charges to an employer’s account.

1. An employer’s account may not be relieved of charges relating to a payment that was made erroneously from the unemployment trust fund account (AS 23.20.135(a) ) if the department determines that
   1. the erroneous payment was made because the employer or an agent of the employer was at fault for failing to respond timely or adequately to a documented request from the department for information relating to the claim for unemployment compensation; and
   2. the employer or an agent of the employer has established a pattern of failing to respond timely or adequately to requests under (1) of this subsection.
2. In this section,
   1. “erroneous payment” means a payment that, but for the failure by the employer or an agent of the employer with respect to the claim for unemployment compensation, would not have been made;
   2. “pattern of failing” means repeated documented failure by the employer or the agent of the employer to respond, taking into consideration the number of instances of failure in relation to the total volume of requests; however, an employer or an agent of the employer that fails to respond as described in (a)(2) of this section may not be determined to have engaged in a pattern of failure if the number of failures during the year before the request is made is fewer than two or the percentage of failures is less than two percent.

History. (§ 3 ch 50 SLA 2013)

Effective dates. —

Section 14, ch. 50, SLA 2013 makes this section effective July 1, 2013.

Editor’s notes. —

Under sec. 11, ch. 50, SLA 2013, this section applies to overpaid benefits established after October 21, 2013.

Legislative history reports. —

For governor’s transmittal letter for ch. 50, SLA 2013 (HB 76), see 2013 House Journal 70 — 71.

Sec. 23.20.280. Eligible employer.

1. An employer is eligible for a rate determination in accordance with the provisions of AS 23.20.280 — 23.20.310 and the department regulations if the employer has been subject to this chapter throughout not less than the four consecutive calendar quarters ending with the computation date and remains subject to this chapter into the calendar quarter which immediately precedes the effective date of the rate.  An employer is not eligible for a rate determination under AS 23.20.280 — 23.20.310 if, with respect to a calendar quarter in or preceding the employer’s qualifying period, the employer has failed to file contribution or payroll reports or to pay contributions, interest, and penalties required by this chapter within 60 days after the computation date or within 10 days after the department has mailed the employer written notice of the delinquency or of failure to file reports, or of both, by registered or certified mail to the employer’s last address of record, whichever is the later date.
2. A report made arbitrarily for an employer by the department under AS 23.20.230 does not entitle an employer to a rate determination under AS 23.20.280 — 23.20.310 , but the report may be used to establish a rate determination in the discretion of the commissioner.
3. An employer who, because of failure to pay contributions or file reports timely, does not qualify for a rate determination under AS 23.20.280 — 23.20.310 shall pay contributions at the highest rate provided in AS 23.20.280 — 23.20.310 .

History. (§ 11 ch 60 SLA 1960; am § 2 ch 13 SLA 1962; am § 6 ch 43 SLA 1973; am §§ 30, 31 ch 9 SLA 1980)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.281. Ineligible employer.

An employer who has been subject to this chapter less than four calendar quarters immediately preceding the computation date is not entitled to a rate determination under AS 23.20.280 — 23.20.310 and the employer shall pay contributions at the standard rates specified in AS 23.20.170(b) .

History. (§ 37 ch 9 SLA 1980)

Sec. 23.20.285. Quarterly decline quotients.

1. The department shall determine each eligible employer’s contribution rate by the procedures set out in AS 23.20.280 — 23.20.310 .  The department shall put the employer’s quarterly payrolls in chronological order beginning with the first calendar quarter in the qualifying period and ending with the last calendar quarter in the period.  If an employer’s payroll in a calendar quarter is less than the payroll in the preceding quarter in the qualifying period, the quarterly decline quotient shall be computed to at least nine decimal places by dividing the amount of the decline by the amount of the payroll in the preceding calendar quarter.
2. For the purpose of computing quarterly decline quotients, the department may, by regulation, prescribe (1) the manner in which wages paid in the form of annual bonuses or other lump-sum payments for service performed over a period of more than three months are apportioned among the calendar quarters of the calendar year in which the service was performed; and (2) the method for making adjustments in quarterly payrolls to eliminate the effect upon quarterly decline quotients resulting from unemployment which would not be compensable by reason of the labor dispute provision of AS 23.20.383 .
3. The department shall determine the sum of each eligible employer’s decline quotients and shall weight the sum by adding to it 1.000000000 for each quarter in the employer’s qualifying period in which the employer has no payroll, which quarter immediately follows a quarter in which the employer has no payroll.  Each eligible employer’s average quarterly decline quotient shall be computed to the ninth decimal place by dividing the sum of the quarterly decline quotients for the employer, weighted when required by this section, by the number of quarters in the employer’s qualifying period less one.

History. (§ 11 ch 60 SLA 1960; am § 32 ch 9 SLA 1980)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.290. Rate determination.

1. The department shall determine each eligible employer’s ratable payroll.  The department shall then put all eligible employers in the order of their average quarterly decline quotients beginning with the smallest average decline quotient and shall determine, with respect to each employer, the cumulative ratable payroll during the four consecutive quarters ending with the computation date of the employer together with all employers who precede the employer on the list.
2. The department shall segregate the employers into groups in accordance with cumulative ratable payroll.  The limits of the groups are those set out in column B of the table in (c) of this section.  Each of these groups shall be identified by the rate class number in column A which is opposite the figures in column B which represent the percentage limits of each group. An employer shall be assigned the experience factor in column C which is opposite the rate class in which the greater part of the employer’s ratable payroll falls.  If one-half of the employer’s ratable payrolls falls in one class, and one-half in another, the employer shall be assigned to the lower numbered rate class.  An employer may not be assigned to a higher numbered rate class than is assigned to another employer with the same average quarterly decline quotient.
3. The rate of contributions for each employer is a percentage of the average benefit cost rate multiplied by the employer’s experience factor set out in column C of the table in this subsection opposite the employer’s applicable rate class set out in column A plus the fund solvency adjustment surcharge required under (f) of this section. That percentage is 76 percent beginning January 1, 2009, and 73 percent beginning January 1, 2010. However, the rate of contributions for an employer may not be less than one percent or more than six and one-half percent. The rate of contributions for an employer in rate class 21 may not be less than 5.4 percent. The rate of contributions for an employer must be rounded to the nearest 1/100th of one percent.
4. The rate of contributions payable by each employee of an employer who is subject to AS 23.20.165 is a percentage of the average benefit cost rate as determined in (e) of this section rounded to the nearest 1/100th of one percent. That percentage is 24 percent beginning January 1, 2009, and 27 percent beginning January 1, 2010. However, the rate of contributions for an employee may not be less than one-half percent or more than one percent.
5. The department shall determine the average benefit cost rate as follows:
   1. the department shall determine the amount of benefits paid to insured workers during the last three computation years;
   2. the department shall subtract from the amount determined in (1) of this subsection the amount of any benefits reimbursed to the fund and the amount of interest earned on the trust fund balance during those computation years;
   3. the department shall divide the amount determined in (2) of this subsection by the total wages paid by all employers required to pay contributions under this chapter during the first three of the last four computation years;
   4. the department shall determine the amount of total wages subject to contributions under this chapter paid during the preceding computation years;
   5. the department shall determine the amount of all wages paid to insured workers during the preceding computation year;
   6. the department shall subtract from the amount determined in (5) of this subsection the amount of wages paid during the preceding computation year by employers who elect to reimburse the department under AS 23.20.276 and 23.20.277 ;
   7. the department shall divide the amount determined in (4) of this subsection by the amount determined in (6) of this subsection; and
   8. the department shall divide the amount determined in (3) of this subsection by the amount determined in (7) of this subsection.
6. An employer shall pay a fund solvency adjustment surcharge if the reserve rate is less than three percent. The surcharge is a percentage equal to the difference between three percent and the reserve rate, rounded to the nearest 1/100 of one percent. An employer shall receive a fund solvency adjustment credit if the reserve rate is greater than 3.3 percent. The credit is a percentage equal to the difference between 3.3 percent and the reserve rate rounded to the nearest 1/100 of one percent. The solvency surcharge may not be greater than 1.1 percent, and the solvency credit may not be greater than 0.4 percent. However, an employer’s fund solvency adjustment surcharge may not increase more than 0.3 percent from one year to the next year.

COLUMN ARate Class COLUMN BCumulativeRatable Payroll COLUMN CExperienceFactor at least(percent) but less than(percent) 1 5 .40 2 5 10 .45 3 10 15 .50 4 15 20 .55 5 20 25 .60 6 25 30 .65 7 30 35 .70 8 35 40 .80 9 40 45 .90 10 45 50 1.00 11 50 55 1.00 12 55 60 1.10 13 60 65 1.20 14 65 70 1.30 15 70 75 1.35 16 75 80 1.40 17 80 85 1.45 18 85 90 1.50 19 90 95 1.55 20 95 99.99 1.60 21 99.99 1.65.

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History. (§ 11 ch 60 SLA 1960; am §§ 7, 8 ch 43 SLA 1973; am §§ 33 — 36 ch 9 SLA 1980; am § 5 ch 115 SLA 1982; am §§ 3 — 5 ch 106 SLA 1984; am §§ 3, 4 ch 116 SLA 1996; am §§ 9, 10 ch 45 SLA 2008; am §§ 4, 5 ch 50 SLA 2013)

Effect of amendments. —

The 2013 amendment, effective July 1, 2013, in the first sentence of (c), inserted “surcharge” following “fund solvency adjustment”; rewrote (f).

Legislative history reports. —

For governor’s transmittal letter for ch. 50, SLA 2013 (HB 76), see 2013 House Journal 70 — 71.

Sec. 23.20.293. Requirement to notify the department of a business change and acquisitions.

1. An employing unit that has a change in ownership, management, or control, or that succeeds to or acquires all or part of another employing unit’s trade or business, shall notify the department in writing in accordance with regulations adopted by the department.
2. For the purposes of this section, “a change in ownership, management, or control” means a change of person, entity, or responsible party required by law to pay unemployment insurance contributions.

History. (§ 1 ch 27 SLA 2006)

Sec. 23.20.295. Rates for successors in business.

1. When an employing unit, whether or not an employer within the meaning of AS 23.20.520 , succeeds to or acquires substantially all of the operating assets of an organization, trade, or business of another employing unit which at the time of acquisition was an employer subject to this chapter, the payroll records of the predecessor employer shall be transferred as of the date of acquisition to the successor employer for the purpose of determining an employer’s qualifying period and for all other purposes of rate determination.
2. If the successor employer was an employer subject to this chapter before the date of acquisition, the rate of contributions for the remainder of the calendar year of acquisition is the successor employer’s rate for the period immediately preceding the date of acquisition; the rate for the succeeding years is based on the total of the successor employer’s payrolls consolidated with those of the predecessor.
3. If the successor was not an employer before the date of acquisition, the rate is the rate applicable to the predecessor employer for the period immediately preceding the date of acquisition provided there was only one predecessor or there were only predecessors with identical rates.  If the predecessor rates were not identical, the successor’s rate is the highest rate applicable to any of the predecessor employers with respect to the period immediately preceding the date of acquisition.
4. This section does not apply to an acquisition, transfer of a trade or business, or transfer of an employers’ workforce conducting the trade or business if the acquisition or transfer is determined by the commissioner
   1. to have been primarily for the purpose of obtaining a more favorable rate of contributions under AS 23.20.280 — 23.20.310 ;
   2. to be inequitable to the parties;
   3. to be contrary to the public interest; or
   4. to be a violation of 42 U.S.C. 503(k) (SUTA Dumping Prevention Act of 2004).

History. (§ 11 ch 60 SLA 1960; am § 2 ch 27 SLA 2006)

Administrative Code. —

For employment security, see 8 AAC 85.

Collateral references. —

Right of successor in business to experience or rating of predecessor for purpose of fixing rate of contributions. 22 ALR2d 673.

Sec. 23.20.297. Special standards addressing transfers of experience and assignment of rates.

1. The following standards apply regarding assignment of rates and transfers of experience. For the purposes of AS 23.20.295(d)(1) and (4),
   1. if an employer transfers its trade or business, its workforce conducting the trade or business, or a portion of that trade, business, or workforce, to another employer and, at the time of the transfer, there is substantially common ownership, management, or control of the two employers, then the unemployment experience attributable to the transferred trade, business, or workforce is transferred to the employer to whom that trade, business, or workforce is transferred; the rates of both employers are recalculated and made effective immediately upon the date of the transfer;
   2. if a person is not an employer at the time the person acquires the trade, business, or workforce of an employer, the unemployment experience of the acquired trade, business, or workforce may not be transferred to that person if the commissioner finds that the person acquired the trade, business, or workforce in order to obtain a lower rate of contributions; instead, the person is assigned the applicable new employer rate under AS 23.20.170(b) .
2. An employer who knowingly or recklessly violates or attempts to violate, or who advises another employer to violate, (a) of this section or any other provision of this chapter related to determining the assignment of a contribution rate, or fails to notify the department of a trade, business, or workforce change or acquisition in order to obtain a more favorable rate of contributions, is not eligible for a rate determination under AS 23.20.280 — 23.20.310 . The employer shall pay one of the following as assigned by the department:
   1. contributions at the highest rate provided for the rate year of the violation and for the three succeeding rate years; or
   2. if the employer’s trade, business, or workforce is already at the highest rate for the rate year of the violation, contributions at the highest rate for the three succeeding rate years and a cash penalty of two percent of taxable wages for the rate year of the violation and three succeeding rate years.
3. A person who knowingly or recklessly advises another person or employer to transfer or acquire a trade, business, or workforce under the provisions of this section in order to obtain a more favorable rate of contributions in violation of (a) of this section is subject to a civil penalty of not more than $5,000.
4. The department may interpret and apply this section in such a manner as to meet the minimum requirements by the United States Department of Labor.

History. (§ 3 ch 27 SLA 2006)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.299. Obtaining an unemployment contribution rate by deception.

1. A person who violates AS 23.20.297(b) or (c) commits the crime of obtaining an unemployment contribution rate by deception.
2. A person commits the crime of obtaining an unemployment contribution rate by deception in the first degree if the value of the difference between the rate that had been assigned to the trade, business, or workforce and the rate assigned as a result of the violation is $25,000 or more. Obtaining an unemployment contribution rate by deception in the first degree is a class B felony.
3. A person commits the crime of obtaining an unemployment contribution rate by deception in the second degree if the value of the difference between the rate that had been assigned to the trade, business, or workforce and the rate assigned as a result of the violation is $500 or more but less than $25,000. Obtaining an unemployment contribution rate by deception in the second degree is a class C felony.
4. A person commits the crime of obtaining an unemployment contribution rate by deception in the third degree if the value of the difference between the rate that had been assigned to the trade, business, or workforce and the rate assigned as a result of the violation is $50 or more but less than $500. Obtaining an unemployment contribution rate by deception in the third degree is a class A misdemeanor.
5. A person commits the crime of obtaining an unemployment contribution rate by deception in the fourth degree if the value of the difference between the rate that had been assigned to the trade, business, or workforce and the rate assigned as a result of the violation is less than $50. Obtaining an unemployment contribution rate by deception in the fourth degree is a class B misdemeanor.
6. A person who attempts to commit the crime of obtaining an unemployment contribution rate by deception commits the crime of attempt under AS 11.31.100 .

History. (§ 4 ch 27 SLA 2006)

Sec. 23.20.300. Corrections and adjustments.

Corrections or modifications of an employer’s payroll may be taken into account within two years after the computation date for the purpose of a reduction or increase in the employer’s rate. When an adjustment is made in an employer’s payroll or in an employer’s average quarterly decline quotient after rates have been assigned, the adjustment may not alter the position of another employer on the schedule or the contribution rate of another employer. The employer for whom the adjustment in decline quotients is made shall be placed in the class in which another employer with the nearest similar average quarterly decline quotient is placed.

History. (§ 11 ch 60 SLA 1960; am § 38 ch 9 SLA 1980)

Sec. 23.20.305. Application for review.

1. The department shall promptly notify each employer of the rate of contributions for the employer as determined for a calendar year under AS 23.20.280 — 23.20.310 . The determination becomes conclusive upon the employer unless, within 30 days after the notice is mailed to the employer’s last address of record or delivered to the employer, the employer files an application for review and redetermination, setting out the reasons for the application.
2. If the commissioner grants review, the employer shall be promptly notified and shall be granted a reasonable opportunity for a fair hearing. The commissioner shall make a redetermination and shall notify the employer of the redetermination and the reason for it.
3. If the commissioner denies a review, the commissioner shall notify the employer of the denial and the reasons for the denial.  A redetermination or a denial of review becomes final, unless within 30 days after the notice is mailed to the last address of record of the employer, or delivered to the employer, the employer initiates judicial review in accordance with AS 23.20.445 .

History. (§ 11 ch 60 SLA 1960; am § 3 ch 13 SLA 1962; am §§ 39, 40 ch 9 SLA 1980; am § 7 ch 43 SLA 1996)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.310. Definitions for AS 23.20.280 — 23.20.310.

In AS 23.20.280 — 23.20.310 ,

1. “business” means a trade or business or a part of the trade or business;
2. “computation date” means June 30 of the year immediately preceding the calendar year for which the contribution rates are effective;
3. “computation year” means the 12 months beginning July 1 and ending June 30;
4. “knowingly” has the meaning given in AS 11.81.900 ;
5. “payroll” means all wages paid by an employer to individuals in the employ of the employer for service in employment as defined in this chapter;
6. “qualifying period” means the three-year period of 12 consecutive calendar quarters ending on the computation date; for an employer who has not been subject to this chapter during each of the 12 calendar quarters ending with the computation date, “qualifying period” means the period ending with the computation date and beginning with the first calendar quarter in the 12 quarter period in which the employer was subject to this chapter, but in no event shall an employer’s qualifying period be less than the four consecutive calendar quarters ending with the computation date; an employing unit is subject to this chapter beginning with the start of the first quarter in which the employing unit pays wages under this chapter, and ending with the end of the calendar quarter in which either the employing unit files closing contribution and wage reports under regulations adopted by the department, or the account is closed by the independent action of the commissioner;
7. “quarterly payroll” means all wages paid by the employer during a calendar quarter;
8. “ratable payroll” means that part of an employer’s payroll for the four consecutive calendar quarters ending on the computation date as is subject to payment of contributions; for the purpose of determining the rate for a newly subject employer under AS 23.20.280 — 23.20.310 the definition of employment in force at the time that the employer becomes subject to this chapter applies to service performed for the employer before the date on which the employer becomes subject;
9. “recklessly” has the meaning given in AS 11.81.900 ;
10. “reserve rate” means the ratio of the total amount available for benefits in the unemployment trust fund on September 30, immediately following the computation date, to the payroll of employers required to pay contributions under the provisions of AS 23.20.165 for the 12 consecutive calendar months ending on the computation date, expressed as a percentage.

History. (§ 11 ch 60 SLA 1960; am § 1 ch 13 SLA 1962; am § 9 ch 43 SLA 1973; am §§ 41 — 44, 80 ch 9 SLA 1980; am § 5 ch 27 SLA 2006)

Revisor’s notes. —

This section was reorganized in 1984 and 2006 to place the defined terms in alphabetical order.

Cross references. —

For definition of employment, see AS 23.20.525 .

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.315. Coverage determination.

1. On its own motion or on the application of an employing unit, the department shall, on the basis of facts found by it, determine whether the employing unit is an employer and whether service performed for it constitutes employment.
2. Within one year or a longer time which the department for good cause allows, after a determination has been made under (a) of this section, the department may reconsider its determination in the light of additional evidence and make a redetermination.
3. The department shall mail or deliver a notice of its determination made under (a) or (b) of this section to the last address of record of the employing unit affected.  The notice must include a statement of the supporting facts found by the department.
4. Within 30 days after a notice of a determination has been mailed or delivered to the last address of record of an employing unit, the employing unit may apply to the department to reconsider its determination in the light of additional evidence and to issue a redetermination. The department shall, if the request is granted, mail or deliver to the last address of record of the employing unit affected a notice of the redetermination. The notice must include a statement of the supporting facts found by the department. If the department denies the request for redetermination, it shall furnish a notice of the denial of the application.
5. Within 30 days after a notice of a determination made under (a), (b), or (d) of this section or a denial of the application under (d) of this section has been mailed or delivered to the last address of record of an employing unit, the employing unit may appeal from the determination to the department. The department shall give the parties a reasonable opportunity for a fair hearing as provided in the case of hearings before appeal tribunals in AS 23.20.410 — 23.20.470 . The decision of the department is final unless, within 30 days after the decision is mailed or delivered to the last address of record of a party, the party initiates judicial review in accordance with AS 23.20.445 .

History. (§ 601 ch 5 ESLA 1955; am §§ 45 — 47 ch 9 SLA 1980; am §§ 8, 9 ch 43 SLA 1996)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.320. Conclusiveness of determination.

A determination of the status of an employing unit by the department under AS 23.20.315 in the absence of appeal, and a final determination of the department upon an appeal, together with the record of the proceeding are admissible in a subsequent proceeding under this chapter. If the determination is supported by substantial evidence and there is no fraud, the determination is conclusive, except as to an error of law, upon an employing unit which is a party to the proceeding.

History. (§ 602 ch 5 ESLA 1955)

Sec. 23.20.325. Elective coverage of excluded service.

1. A service performed for an employing unit which is excluded under the definition of employment, and with respect to which no payments are required under the employment security law of another state or of the federal government, is considered employment for all purposes of this chapter if the department approves a written election to that effect filed by the employing unit for which the service is performed, as of the date stated in the approval.  The department may not approve an election unless it (1) includes all the service of the type specified in each establishment or place of business for which the election is made, and (2) is made for not less than two calendar years.
2. A service which because of an election by an employing unit under (a) of this section is employment subject to this chapter ceases to be employment subject to the chapter as of January 1 of a calendar year after the two calendar years of the election only if not later than March 15 of the year (1) the employing unit has filed with the department a written notice to that effect, or (2) the department on its own motion has given notice of termination of coverage.

History. (§ 604 ch 5 ESLA 1955; am § 5 ch 122 SLA 1977)

Revisor’s notes. —

The contingent amendment to this section made under sec. 33, ch. 122, SLA 1977 never took effect and was repealed by sec. 82, ch. 41, SLA 2009.

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.326. Elective coverage by political subdivisions. [Repealed, § 25 ch 122 SLA 1977.]

Sec. 23.20.330. Claims.

Claims for benefits and notices of unemployment shall be made in accordance with the regulations that the department adopts.

History. (§ 701 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.335. Notice to employees.

An employer shall post and maintain in places readily accessible to individuals in the service of the employer printed statements concerning the regulations or other matters which the department prescribes by regulation. An employer shall supply individuals in the service of the employer with copies of the printed statements or materials relating to claims for benefits which the department prescribes by regulation. The department shall supply the printed statements to an employer without cost.

History. (§ 701 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.340. Determination of claims.

1. An examiner designated by the department shall take the claim.  The examiner shall take all evidence pertaining to the eligibility of the claimant and shall promptly transmit all evidence to the department.  The department, or a representative designated by it for the purpose, shall, on the basis of the evidence submitted and any additional evidence it requires, make an initial determination of the claim as to whether the claimant is eligible for benefits under AS 23.20.350 and an initial determination of the weekly benefit amount and the maximum potential benefit amount.
2. Within one year from the date of the initial determination of the weekly benefit amount and the maximum potential benefit amount established under AS 23.20.350 , the department shall reconsider the determination or any subsequent determination under this chapter and shall issue a redetermination amending the determination if the department finds that
   1. an error in computation or identity has been made;
   2. additional wages or other facts pertinent to the claimant’s insured status or eligibility for benefits have become available;
   3. the determination resulted from a nondisclosure or misrepresentation of a material fact; or
   4. the determination resulted from a misapplication of law by the department.
3. The claimant shall be promptly notified of the initial determination or a subsequent redetermination and the reasons for it.
4. Unless the claimant is determined to be disqualified for benefits under AS 23.20.360 , 23.20.362 , 23.20.375 , 23.20.378 — 23.20.387 , or 23.20.505 , benefits shall be promptly paid in accordance with the initial determination or subsequent redetermination.
5. The claimant may file an appeal from an initial determination or a redetermination under (b) of this section not later than 30 days after the claimant is notified in person of the determination or redetermination or not later than 30 days after the date the determination or redetermination is mailed to the claimant’s last address of record. The period for filing an appeal may be extended for a reasonable period if the claimant shows that the application was delayed as a result of circumstances beyond the claimant’s control.
6. If a determination of disqualification under AS 23.20.360 , 23.20.362 , 23.20.375 , 23.20.378 — 23.20.387 , or 23.20.505 is made, the claimant shall be promptly notified of the determination and the reasons for it.  The claimant and other interested parties as defined by regulations of the department may appeal the determination in the same manner prescribed in this chapter for appeals of initial determinations and redeterminations.  Benefits may not be paid while a determination is being appealed for any week for which the determination of disqualification was made. However, if a decision on the appeal allows benefits to the claimant, those benefits must be paid promptly.
7. [Repealed, § 80 ch 9 SLA 1980.]

History. (§ 702 ch 5 ESLA 1955; am §§ 48 — 53, 80 ch 9 SLA 1980; am §§ 6, 7 ch 115 SLA 1982; am § 17 ch 100 SLA 1989; am §§ 10, 11 ch 43 SLA 1996)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.345. Payment of benefits.

Benefits are payable from the fund. All benefits shall be paid through employment offices in accordance with regulations adopted by the department.

History. (§ 711 ch 5 ESLA 1955)

Sec. 23.20.350. Amount of benefits.

1. An individual who is paid at least $2,500 in wages during the individual’s base period for employment covered by this chapter is eligible to receive benefits under this chapter if those wages were paid in at least two of the calendar quarters of the individual’s base period.
2. [Repealed, § 33 ch 115 SLA 1982.]
3. For the purpose of computing the benefits payable under this chapter, the base period wages of an insured worker shall be determined as follows:
   1. if the insured worker is paid 90 percent or more of the worker’s wages in the calendar quarter of the worker’s base period in which the worker was paid the greatest amount of wages, the base period wages are the wages paid in the quarters of the base period other than the one in which the greatest amount of wages were paid, multiplied by 10; and
   2. if the insured worker is paid less than 90 percent of the worker’s wages in the calendar quarter of the worker’s base period in which the worker was paid the greatest amount of wages, the base period wages are the wages paid to the worker during the base period.
      1. (B) Base Period Wages Weekly Benefit Amount At least But less than 0  2,500 $ 0 2,500 2,750 56 2,750 3,000 58 3,000 3,250 60 3,250 3,500 62 3,500 3,750 64 3,750 4,000 66 4,000 4,250 68 4,250 4,500 70 4,500 4,750 72 4,750 5,000 74 5,000 5,250 76 5,250 5,500 78 5,500 5,750 80 5,750 6,000 82 6,000 6,250 84 6,250 6,500 86 6,500 6,750 88 6,750 7,000 90 7,000 7,250 92 7,250 7,500 94 7,500 7,750 96 7,750 8,000 98 8,000 8,250 100 8,250 8,500 102 8,500 8,750 104 8,750 9,000 106 9,000 9,250 108 9,250 9,500 110 9,500 9,750 112 9,750 10,000 114 10,000 10,250 116 10,250 10,500 118 10,500 10,750 120 10,750 11,000 122 11,000 11,250 124 11,250 11,500 126 11,500 11,750 128 11,750 12,000 130 12,000 12,250 132 12,250 12,500 134 12,500 12,750 136 12,750 13,000 138 13,000 13,250 140 13,250 13,500 142 13,500 13,750 144 13,750 14,000 146 14,000 14,250 148 14,250 14,500 150 14,500 14,750 152 14,750 15,000 154 15,000 15,250 156 15,250 15,500 158 15,500 15,750 160 15,750 16,000 162 16,000 16,250 164 16,250 16,500 166 16,500 16,750 168 16,750 17,000 170 17,000 17,250 172 17,250 17,500 174 17,500 17,750 176 17,750 18,000 178 18,000 18,250 180 18,250 18,500 182 18,500 18,750 184 18,750 19,000 186 19,000 19,250 188 19,250 19,500 190 19,500 19,750 192 19,750 20,000 194 20,000 20,250 196 20,250 20,500 198 20,500 20,750 200 20,750 21,000 202 21,000 21,250 204 21,250 21,500 206 21,500 21,750 208 21,750 22,000 210 22,000 22,250 212 22,250 22,500 214 22,500 22,750 216 22,750 23,000 218 23,000 23,250 220 23,250 23,500 222 23,500 23,750 224 23,750 24,000 226 24,000 24,250 228 24,250 24,500 230 24,500 24,750 232 24,750 25,000 234 25,000 25,250 236 25,250 25,500 238 25,500 25,750 240 25,750 26,000 242 26,000 26,250 244 26,250 26,500 246 26,500 26,750 248 26,750 27,000 250 27,000 27,250 252 27,250 27,500 254 27,500 27,750 256 27,750 28,000 258 28,000 28,250 260 28,250 28,500 262 28,500 28,750 264 28,750 29,000 266 29,000 29,250 268 29,250 29,500 270 29,500 29,750 272 29,750 30,000 274 30,000 30,250 276 30,250 30,500 278 30,500 30,750 280 30,750 31,000 282 31,000 31,250 284 31,250 31,500 286 31,500 31,750 288 31,750 32,000 290 32,000 32,250 292 32,250 32,500 294 32,500 32,750 296 32,750 33,000 298 33,000 33,250 300 33,250 33,500 302 33,500 33,750 304 33,750 34,000 306 34,000 34,250 308 34,250 34,500 310 34,500 34,750 312 34,750 35,000 314 35,000 35,250 316 35,250 35,500 318 35,500 35,750 320 35,750 36,000 322 36,000 36,250 324 36,250 36,500 326 36,500 36,750 328 36,750 37,000 330 37,000 37,250 332 37,250 37,500 334 37,500 37,750 336 37,750 38,000 338 38,000 38,250 340 38,250 38,500 342 38,500 38,750 344 38,750 39,000 346 39,000 39,250 348 39,250 39,500 350 39,500 39,750 352 39,750 40,000 354 40,000 40,250 356 40,250 40,500 358 40,500 40,750 360 40,750 41,000 362 41,000 41,250 364 41,250 41,500 366 41,500 41,750 368 41,750 42,000 370 42,000 370.
4. An individual who is eligible under (a) of this section is entitled to receive the weekly benefit amount set out in column (B) of the table in this subsection that is opposite the amount set out in column (A) of the individual’s base period wages determined under (c) of this section:
5. An individual who is eligible under (d) of this section is entitled to receive a weekly benefit under this chapter for the number of weeks set out in column (B) of the table in this subsection opposite the applicable earnings ratio of the individual set out in column (A):
6. An individual who establishes a benefit year is eligible for an allowance for dependents in addition to the individual’s weekly benefit amount. The department may require an individual claiming or receiving an allowance for dependents to produce income tax returns, birth certificates, notices of adoption or custody, social security account number of spouse, verification of support documents, or other information necessary to verify that the allowance is payable to the individual.  The allowance for dependents
   1. is $24 per week for each dependent, except that the total allowance for dependents paid to an individual may not exceed $72 for each week of unemployment;
   2. is payable beginning with the week during the benefit year in which the individual claims an allowance for the dependent and is payable for the remainder of the individual’s eligibility for regular, extended, or supplemental payments during the benefit year;
   3. may not be claimed for a new dependent after the end of the benefit year or after the exhaustion of regular benefits in the benefit year;
   4. [Repealed, § 30 ch 100 SLA 1989.]
   5. [Repealed, § 30 ch 100 SLA 1989.]
7. In this section,
   1. “dependent” means an individual’s
      1. unmarried child, stepchild, legally adopted child, or legal ward under 18 years of age who is
         1. lawfully in the individual’s physical custody at the time the individual claims the allowance for dependents; or
         2. dependent on the individual for more than 50 percent of support;
      2. unmarried child, stepchild, legally adopted child, or legal ward of any age who is dependent on the individual for more than 50 percent of support and who is prevented by infirmity from engaging in a gainful occupation;
   2. “earnings ratio” means the ratio obtained by dividing the total base period wages of the insured worker by the wages paid in the quarter of the base period in which the worker was paid the greatest amount of wages.

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(A) (B) Earnings Ratio Number of Weeks less than 1.50 16 1.50-1.99 18 2.00-2.49 20 2.50-2.99 22 3.00-3.49 24 3.50 or more 26

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History. (§ 712(a) — (d) ch 5 ESLA 1955; am § 25 ch 169 SLA 1957; am § 1 ch 112 SLA 1966; am §§ 9, 10 ch 106 SLA 1969; am § 7 ch 106 SLA 1971; am § 10 ch 43 SLA 1973; am § 54 ch 9 SLA 1980; am §§ 8, 33 ch 115 SLA 1982; am §§ 6 — 8 ch 106 SLA 1984; am § 26 ch 85 SLA 1988; am § 30 ch 100 SLA 1989; am § 1 ch 167 SLA 1990; am § 5 ch 116 SLA 1996; am §§ 11, 12 ch 45 SLA 2008)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.352. Additional benefits. [Repealed, § 32 ch 32 SLA 1971.]

Sec. 23.20.353. Supplemental state benefits.

1. An individual is eligible to receive supplemental state benefits for a week in which
   1. the individual is an “exhaustee” as defined in AS 23.20.409 ;
   2. the individual has otherwise satisfied the requirements of this chapter for the receipt of regular benefits; and
   3. the individual is ineligible for extended benefits solely because of the provisions of AS 23.20.406(k) .
2. Supplemental state benefits are paid in the same amounts, for the same periods, and under the same conditions as extended benefits under AS 23.20.406(a) — (j) and (l) and AS 23.20.407 — 23.20.409 .
3. [Repealed, § 9 ch 28 SLA 1993.]

History. (§ 9 ch 115 SLA 1982; am § 2 ch 28 SLA 1993)

Revisor’s notes. —

In 1996, in (a)(3) of this section, “AS 23.20.406 (k)” was substituted for “AS 23.20.406 ( l )” and in (b), “AS 23.20.406(a) — (j) and ( l )” was substituted for “AS 23.20.406(a) — (k)” to reflect the 1996 relettering of AS 23.20.406(k) and ( l ).

Sec. 23.20.354. State interim benefits.

1. There is established a state interim benefits program.  State interim benefits are payable only to the extent that money is appropriated from the general fund for that purpose.
2. An individual who has otherwise satisfied the requirements of this chapter for the receipt of regular benefits is eligible for state interim benefits if
   1. the individual’s weekly benefit amount payable under this chapter is reduced or denied under AS 23.20.381(h) ; or
   2. the individual is a noncertificated individual who provides compensated service to a school district for teaching indigenous languages and the individual’s weekly benefit amount payable under this chapter is reduced or denied under AS 23.20.381(e) .
3. The amount of state interim benefits payable to an individual for a week is equal to the difference between the individual’s weekly benefit amount, including the dependents allowance, established under AS 23.20.350 and the individual’s weekly benefit amount, including the dependents allowance, payable for that week under AS 23.20.381(e) or 23.20.381(h) . The total amount of state interim benefits paid may not exceed the total amount of regular benefits denied solely under AS 23.20.381(e) or 23.20.381(h) .
4. State interim benefits are subject to reduction, disqualification, recoupment, and offset in the same manner as regular benefits under this chapter.
5. Extended, additional, or supplemental benefits of any kind are not payable on the basis of a claim for, or the payment of, state interim benefits.  State interim benefits may not be used to supplement a reduction or denial of extended, additional, or supplemental benefits.

History. (§ 9 ch. 106 SLA 1984)

Sec. 23.20.355. Interstate payment restrictions. [Repealed, § 8 ch 106 SLA 1971.]

Sec. 23.20.360. Earnings deducted from weekly benefit amount.

The amount of benefits, excluding the allowance for dependents, payable to an insured worker for a week of unemployment shall be reduced by 75 percent of the wages payable to the insured worker for that week that are in excess of $50. However, the amount of benefits may not be reduced below zero. If the benefit is not a multiple of $1, it is computed to the next higher multiple of $1. If the benefit is zero, no allowance for dependents is payable.

History. (§ 713 ch 5 ESLA 1955; am § 26 ch 169 SLA 1957; am § 55 ch 9 SLA 1980; am § 10 ch 115 SLA 1982)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.362. Disqualifying or deductible income.

1. The amount of benefits payable to an insured worker for a week of unemployment which begins in a period for which the insured worker receives a pension, retirement or retired pay, annuity, or similar periodic payment that is based on the previous work of the insured worker shall be reduced by the amount of the payment that is attributable to that week.  The requirements of this subsection apply only if
   1. the pension, retirement or retired pay, annuity, or similar periodic payment is provided under a plan maintained or contributed to by an employer of the insured worker during the base period of the insured worker; and
   2. for a periodic payment other than a payment made under the Social Security Act, the Railroad Retirement Act of 1974, or earlier versions of those federal laws, the service performed for an employer by an insured worker after the beginning of the base period or remuneration for those services affects eligibility for, or increases the amount of the pension, retirement or retired pay, annuity, or similar periodic payment.
2. The reduction of benefits provided in (a) of this section does not apply to that part, if any, of a pension, retirement or retired pay, annuity, or similar periodic payment that is attributable to contributions of the insured worker.
3. The amount of benefits payable to an insured worker for a week of unemployment shall be reduced by the amount of any severance or termination payment, wages in lieu of dismissal notice, or payment for vacation, sick leave, or holidays that is attributable to that week.
4. An individual is not entitled to benefits for a week of unemployment for which the individual has received or is seeking unemployment benefits under another employment security law in a manner other than in accordance with the reciprocal arrangements with other states or the federal government.  This subsection does not apply if the appropriate agency finally determines that the individual is not entitled to benefits under the other law.
5. If, after a reduction of the benefit amount under (a) or (c) of this section, the weekly benefit amount is not a multiple of $1, the benefit amount shall be increased to the next higher multiple of $1.

History. (§ 56 ch 9 SLA 1980; am § 1 ch 145 SLA 1980; am § 2 ch 114 SLA 1981; § 10 ch 106 SLA 1984)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.365. Limited liability of state.

Benefits are considered due and payable under this chapter only to the extent provided in this chapter and to the extent that money is available for them to the credit of the unemployment fund, and the liability of the state is limited accordingly.

History. (§ 1001 ch 5 ESLA 1955)

Sec. 23.20.370. Benefits of decedent or incompetent.

Benefits due and payable to a deceased or judicially declared incompetent person shall be paid, in accordance with regulations adopted by the department, to persons in the following order: spouse, child, parent, sister or brother, aunt or uncle, payment to whom the department finds will best carry out the purposes of this chapter. The regulations need not conform to the statutes applicable to the descent and distribution of decedents’ estates. A receipt from the person to whom the department makes payment fully discharges the fund and the department from liability for the benefits.

History. (§ 721 ch 5 ESLA 1955; am § 57 ch 9 SLA 1980)

Sec. 23.20.375. Filing requirements.

1. An insured worker is entitled to receive waiting-week credit or benefits for a week of unemployment for which the insured worker has not been disqualified under AS 23.20.360 , 23.20.362 , 23.20.378 — 23.20.387 , or 23.20.505 if, in accordance with regulations adopted by the department, the insured worker has
   1. made an initial claim for benefits; and
   2. for that week, certified for waiting-week credit or made a claim for benefits.
2. Benefits are not payable for a waiting week and benefits are not payable for a week of unemployment occurring within the benefit year before the completion of the waiting week.
3. [Repealed, § 80 ch 9 SLA 1980.]

History. (§ 731 ch 5 ESLA 1955; am § 9 ch 106 SLA 1971; am § 6 ch 122 SLA 1977; am §§ 58, 80 ch 9 SLA 1980; am § 3 ch 114 SLA 1981; am § 11 ch 115 SLA 1982)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.376. Base period extension and limitation.

1. If the department finds that during the individual’s base period an individual has been incapable of work during the greater part of the individual’s working time in a calendar quarter, the base period shall be extended a calendar quarter subject to the limitation set out in (b) of this section.  The extension of an individual’s base period may not exceed four calendar quarters.
2. The maximum benefits payable as a result of the use of wages earned in a calendar quarter before the individual’s current base period as defined in AS 23.20.520 shall be reduced by the amount of benefits paid previously as a result of the use of wages in computing a previous benefit determination.

History. (§ 1 ch 111 SLA 1966)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.378. Able to work and available for suitable work.

1. An insured worker is entitled to receive waiting-week credit or benefits for a week of unemployment if for that week the insured worker is able to work and available for suitable work. An insured worker is not considered available for work unless registered for work in accordance with regulations adopted by the department. An insured worker may not be disqualified for failure to comply with this subsection if
   1. the insured worker is not available for work because the insured worker
      1. is ill or disabled;
      2. is traveling to obtain medical services that are not available in the area in which the insured worker resides, or, if a physician determines it is necessary, the insured worker is accompanying a spouse or dependent who is traveling to obtain medical services;
      3. resides in the state and is noncommercially hunting or fishing for personal survival or the survival of dependents;
      4. is serving as a prospective or impaneled juror in a court; or
      5. is attending the funeral of an immediate family member for a period of no longer than seven days; and
   2. a condition described in (1) of this subsection occurs during an uninterrupted period of unemployment immediately following a week for which the insured worker has filed a compensable claim, and work has not been offered that would have been suitable for the insured worker before the illness, disability, hunting, fishing, medical travel, jury service, or funeral attendance.
2. A waiver of disqualification for an illness or disability under (a)(1) of this section may not exceed six consecutive weeks.
3. An insured worker is disqualified for waiting-week credit or benefits for a week of unemployment while the insured worker is pursuing an academic education. A disqualification under this subsection begins with the first week of academic instruction and ends with the week immediately before the first full week in which the insured worker is no longer pursuing an academic education. However, an insured worker who has been pursuing an academic education for at least one school term and who was working at least 30 hours a week during a significant portion of the time that the worker was pursuing an academic education is not disqualified for waiting-week credit or benefits under this subsection if the worker’s academic schedule does not preclude full-time work in the worker’s occupation and if the insured worker became unemployed because the worker was laid off or the worker’s job was eliminated. In this subsection,
   1. “pursuing an academic education” means attending an established school in a course of study providing academic instruction of 10 or more credit hours per week, or the equivalent;
   2. “school” includes primary schools, secondary schools, and institutions of higher education.

History. (§ 59 ch 9 SLA 1980; am § 12 ch 115 SLA 1982; am § 18 ch 100 SLA 1989; am § 12 ch 43 SLA 1996)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.379. Voluntary quit, discharge for misconduct, and refusal of work.

1. An insured worker is disqualified for waiting-week credit or benefits for the first week in which the insured worker is unemployed and for the next five weeks of unemployment following that week if the insured worker
   1. left the insured worker’s last suitable work voluntarily without good cause; or
   2. was discharged for misconduct connected with the insured worker’s last work.
2. An insured worker is disqualified for waiting-week credit or benefits for a week and the next five weeks of unemployment following that week if, for that week, the insured worker fails without good cause
   1. to apply for available suitable work to which the insured worker was referred by the employment office; or
   2. to accept suitable work when offered to the insured worker.
3. The department shall reduce the maximum potential benefits to which an insured worker disqualified under this section would have been entitled by three times the insured worker’s weekly benefit amount, excluding the allowance for dependents, or by the amount of unpaid benefits to which the insured worker is entitled, whichever is less.
4. The disqualification required in (a) and (b) of this section is terminated if the insured worker returns to employment and earns at least eight times the insured worker’s weekly benefit amount.
5. An insured worker is disqualified for waiting-week credit or benefits for the first week in which the insured worker is unemployed and for the next 51 weeks of unemployment following that week or until the individual has worked subsequent to the discharge from work and earned 20 times the insured worker’s weekly benefit amount in employment covered under this chapter if the insured worker was discharged for commission of a felony or theft in connection with the work. In addition, the insured worker is not eligible for extended benefits under this chapter until the worker has requalified for benefits by meeting the earnings requirement in this subsection.
6. In this section,
   1. “alcohol” has the meaning given in AS 23.10.699 ;
   2. “drugs” has the meaning given in AS 23.10.699 ;
   3. “misconduct” includes conduct in violation of an employer’s policy concerning the use of drugs or alcohol, but only if the policy is consistent with AS 23.10.620 .

History. (§ 59 ch 9 SLA 1980; am §§ 19 — 21 ch 100 SLA 1989; am §§ 3, 4 ch 51 SLA 2000)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.380. Disqualification for benefits. [Repealed, § 80 ch 9 SLA 1980.]

Sec. 23.20.381. Other disqualifications.

1. Benefits are not payable to any individual on the basis of any services, substantially all of which consist of participation in sports or athletic events or training or preparing to so participate, for any week which commences during the period between two successive seasons or similar periods of that sport or athletic event if that individual performed the services in the first of those seasons or similar periods and there is a reasonable assurance that the individual will perform the same or similar services in the second of those seasons or similar periods.
2. Benefits are not payable on the basis of services performed by an alien unless that alien is an individual who has been lawfully admitted for permanent residence or otherwise is permanently residing in the United States under color of law, including an alien who is lawfully present in the United States as a result of the application of the provisions of 8 U.S.C. 1153 or 1182 (§§ 203(a)(7) or 212(d)(5), Immigration and Nationality Act).
3. Benefits may not be refused under (b) of this section unless any data or information required of an individual to determine whether benefits are not payable to the individual because of the individual’s alien status is uniformly required of all applicants for benefits and, in the case of an individual whose applications for benefits would otherwise be approved, determination that benefits to that individual are not payable because of the individual’s alien status are made only upon a preponderance of the evidence in the record.
4. Notwithstanding the provisions of (b) or (c) of this section, any other conditions which may be required under any amendments to 26 U.S.C. 3304(a)(14) for allowing or denying benefits to aliens as a condition of approval of the unemployment insurance laws of this state under 26 U.S.C. 3304 shall be applied in determining eligibility for benefits under this chapter, commencing on the date on which those conditions are required by federal law to be in effect.
5. Benefits based on service in an instructional, research, or principal administrative capacity for an educational institution may not be paid to an individual for a week of unemployment which begins during the period between two successive academic years, or during a similar period between two regular terms, whether or not successive, or during a period of paid sabbatical leave provided for in the individual’s contract, if the individual performs services in the first of those academic years or terms and if there is a contract or reasonable assurance that the individual will perform services in the same or similar capacity for an educational institution in the second of those academic years or terms.
6. [Repealed, § 2 ch 145 SLA 1980.]
7. An individual may not receive benefits under this chapter in two successive benefit years unless
   1. the individual has performed services, whether or not in “employment” as defined in AS 23.20.525 , after the beginning of the first benefit year; and
   2. the individual has earned wages for those services equal to at least eight times the individual’s weekly benefit amount, excluding an allowance for dependents.
8. Benefits based on services for an educational institution in other than an instructional, research, or principal administrative capacity may not be paid to an individual for a week of unemployment that begins during the period between two successive academic years or terms if the individual performed those services in the first of those academic years or terms and there is a reasonable assurance that the individual will perform those services in the second of those academic years or terms.  If an individual is denied benefits for any week under this subsection and the individual is not later offered an opportunity to perform services for the educational institution in the second academic year or term, the individual is entitled to a retroactive payment of benefits for each week for which the individual filed a timely claim for benefits and for which benefits were denied solely under this subsection.
9. Benefits based on services described in (e) and (h) of this section may not be paid to an individual for a week that begins during an established and customary vacation period or holiday recess if the individual performs those services in the period immediately before the vacation period recess and there is a reasonable assurance that the individual will perform those services in the period immediately following the vacation period or holiday recess.
10. Benefits based on services described in (e) and (h) of this section shall be denied under (e), (h), and (i) of this section to an individual who performed those services in an educational institution while in the employ of an educational service agency. In this subsection, “educational service agency” means a governmental agency, governmental entity, or federally recognized tribe that is established and operated exclusively for the purpose of providing services to one or more educational institutions.

History. (§ 7 ch 122 SLA 1977; am § 60 ch 9 SLA 1980; am § 2 ch 145 SLA 1980; am § 13 ch 115 SLA 1982; am § 11 ch 106 SLA 1984; am § 12 ch 27 SLA 2009)

Cross references. —

For legislative findings and intent in connection with the 2009 amendment of (j) of this section, see § 1, ch. 27, SLA 2009, in the 2009 Temporary and Special Acts.

Administrative Code. —

For employment security, see 8 AAC 85.

Effect of amendments. —

The 2009 amendment, effective May 26, 2009, added “, or federally recognized tribe” in the second sentence; made related stylistic changes.

Sec. 23.20.382. Benefits while attending approved vocational training course.

1. Benefits or waiting-week credit for any week may not be denied an otherwise eligible individual because the individual is attending a vocational training or retraining course with the approval of the director of the employment security division or because, while attending the course, the individual is not available for work or refuses an offer of work.
2. An otherwise eligible individual may not be denied benefits or waiting-week credit for any week because the individual is in training approved under 19 U.S.C. 2296(a)(1) (sec. 236(a)(1), Trade Act of 1974), if
   1. while attending the training, the individual is not available for work, fails to seek work, or refuses work; or
   2. the individual left work that was not suitable employment to enter training.
3. In (b)(2) of this section, “suitable employment” means work that
   1. pays at least 80 percent of the individual’s average weekly wage, as determined for the purposes of the Trade Act of 1974; and
   2. is at least equal in skill level to the individual’s past adversely affected employment, as defined for purposes of the Trade Act of 1974.
4. An otherwise eligible individual may not be denied benefits or waiting-week credit for any week because the individual is in any training approved under P.L. 105-220 (Workforce Investment Act of 1998) and, while attending the training, is not available for work, fails to seek work, or refuses work.

History. (§ 741.5 ch 5 ESLA 1955, added by § 1 ch 64 SLA 1962; am § 1 ch 74 SLA 1976; am § 14 ch 115 SLA 1982; am §§ 22, 23 ch 100 SLA 1989; am § 5 ch 51 SLA 2000; am E.O. No. 118, § 2 (2016))

Revisor’s notes. —

In 2016, ‘‘division responsible for employment and training services’’ was substituted for ‘‘employment security division’’ in (a) to implement E.O. No. 118, Sec. 2.

Cross references. —

For definition of “average weekly wage” in the Trade Act, see 19 U.S.C. § 2319(4); for definition of “adversely affected employment” in the Trade Act, see 19 U.S.C. § 2319(1).

Effect of amendments. —

The 2016 amendment, by E.O. 118, in (a), substituted ‘‘division responsible for employment and training services’’ for ‘‘employment security division’’. E.O. No. 118, § 4, provides that the 2016 amendment to subsection (a) takes ‘‘effect July 1, 2016.’’ However, E.O. No. 118 was signed by the governor July 28, 2016.

Administrative Code. —

For employment security, see 8 AAC 85.

Legislative history reports. —

For report on ch. 74, SLA 1976 (HB 874 am), see 1976 House Journal, p. 805.

Opinions of attorney general. —

If the entire monthly amount received under Public Law 89-358, §§ 1681, 1682 was expended for subsistence, there was no objection to excluding it for the purpose of computing a claimant’s unemployment insurance benefits. 1966 Alas. Op. Att'y Gen. No. 12.

Sec. 23.20.382. Benefits while attending approved vocational training course.

1. Benefits or waiting-week credit for any week may not be denied an otherwise eligible individual because the individual is attending a vocational training or retraining course with the approval of the director of the division responsible for employment and training services or because, while attending the course, the individual is not available for work or refuses an offer of work.
2. An otherwise eligible individual may not be denied benefits or waiting-week credit for any week because the individual is in training approved under 19 U.S.C. 2296(a)(1) (sec. 236(a)(1), Trade Act of 1974), if
   1. while attending the training, the individual is not available for work, fails to seek work, or refuses work; or
   2. the individual left work that was not suitable employment to enter training.
3. In (b)(2) of this section, “suitable employment” means work that
   1. pays at least 80 percent of the individual’s average weekly wage, as determined for the purposes of the Trade Act of 1974; and
   2. is at least equal in skill level to the individual’s past adversely affected employment, as defined for purposes of the Trade Act of 1974.
4. An otherwise eligible individual may not be denied benefits or waiting-week credit for any week because the individual is in any training approved under P.L. 105-220 (Workforce Investment Act of 1998) and, while attending the training, is not available for work, fails to seek work, or refuses work.

History. (§ 741.5 ch 5 ESLA 1955, added by § 1 ch 64 SLA 1962; am § 1 ch 74 SLA 1976; am § 14 ch 115 SLA 1982; am §§ 22, 23 ch 100 SLA 1989; am § 5 ch 51 SLA 2000; am E.O. No. 118, § 2 (2016))

Sec. 23.20.383. Labor dispute disqualification.

1. An insured worker is disqualified for waiting-week credit or benefits for a week of the insured worker’s unemployment if, for that week, the department finds the insured worker’s unemployment is due to a stoppage of work caused by a labor dispute at the immediate establishment or other premises at which the insured worker is or was last employed.  For the purposes of this section, each separate department of the same premises which is commonly conducted as a separate business in separate premises is considered a separate establishment or other premises.
2. This section does not apply if the department finds that
   1. the insured worker was not participating in or directly interested in the labor dispute that caused the insured worker’s unemployment, and the insured worker did not belong to a grade or class of workers that, immediately before the commencement of the dispute, had members employed at the premises at which the labor dispute occurred who were participating in or directly interested in the labor dispute; or
   2. the labor dispute is caused by the failure or refusal of the employer to comply with an agreement or contract between the employer and the insured worker, or a state or federal law pertaining to hours, wages, or other conditions of work.

History. (§ 61 ch 9 SLA 1980; am § 15 ch 115 SLA 1982)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.385. Suitable work.

1. Work may not be considered suitable and benefits may not be denied under a provision of this chapter to an otherwise eligible individual for refusing to accept new work under any of the following conditions:
   1. if the position offered is vacant due directly to a strike, lockout, or other labor dispute;
   2. if the wages, hours, or other conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the locality;
   3. if, as a condition of being employed, the individual would be required to join a company union or to resign from or refrain from joining a bona fide labor organization.
2. In determining whether work is suitable for a claimant and in determining the existence of good cause for leaving or refusing work, the department shall, in addition to determining the existence of any of the conditions specified in (a) of this section, consider the degree of risk to the claimant’s health, safety, and morals, the claimant’s physical fitness for the work, the claimant’s prior training, experience, and earnings, the length of the claimant’s unemployment, the prospects for obtaining work at the claimant’s highest skill, the distance of the available work from the claimant’s residence, the prospects for obtaining local work, and other factors that influence a reasonably prudent person in the claimant’s circumstances.
3. This section shall be given the same meaning as the Secretary of Labor gives to 26 U.S.C. 3304(a)(5) (Internal Revenue Code of 1954).

History. (§ 742 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.387. Disqualification for misrepresentation.

1. An insured worker is disqualified for benefits for the week with respect to which the false statement or misrepresentation was made and for an additional period of not less than six weeks or more than 52 weeks if the department determines that the insured worker has knowingly made a false statement or misrepresentation of a material fact or knowingly failed to report a material fact with intent to obtain or increase benefits under this chapter. The length of the additional disqualification and the beginning date of that disqualification shall be determined by the department according to the circumstances in each case.
2. A person may not be disqualified from receiving benefits under this section unless there is documented evidence that the person has made a false statement or a misrepresentation as to a material fact or has failed to disclose a material fact. Before a determination of fraudulent misrepresentation or nondisclosure may be made, there must be a preponderance of evidence of an intention to defraud, and the false statement or misrepresentation must be shown to be knowing and to involve a material fact.
3. The insured worker shall be notified of the department’s determination under this section as provided in AS 23.20.340(f) and may appeal the determination as provided in AS 23.20.415 .

History. (§ 61 ch 9 SLA 1980; am § 24 ch 100 SLA 1989)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.390. Recovery of improper payments; penalty.

1. An individual who receives a sum as benefits from the unemployment compensation fund when not entitled to it under this chapter is liable to the fund for the sum improperly paid to the individual.
2. The department shall promptly prepare and deliver or mail to the individual at the individual’s last address of record a notice of determination of liability declaring that the individual has been determined liable to refund the amount of benefits to which the individual is not entitled. The amount, if not previously collected, shall be deducted from future benefits payable to the individual. However, the department may absolve liability to the fund for repayment of all or a portion of those benefits if the department determines that an individual has died or has acted in good faith in claiming and receiving benefits to which the individual was not entitled and recovery of those benefits would be against equity and good conscience.
3. For similar cause and in the same manner, a claim by another state for the recovery of sums paid as benefits under an employment security law of the other state is recoverable under this chapter if the sums were obtained by an individual who is not entitled and the other state has a comparable provision in its employment security law for recovery of the sums on behalf of this state.
4. If paid-out benefit sums have neither been repaid by the recipient nor deducted from benefits payable to the recipient within two years following the last day of the year in which payment was made, the commissioner may declare the sums uncollectible and cancel both the resulting shortage and related records.
5. An appeal from the determination of liability under this section may be made in the same manner and to the same extent as provided by AS 23.20.340 and 23.20.410 — 23.20.470 for an appeal relating to a determination in respect to a claim for benefits. If no appeal is taken to the appeal tribunal by the individual within 30 days of the delivery of the notice of determination of liability, or within 30 days of the mailing of the notice of determination, whichever is earlier, the determination of liability is final and the court shall, upon application of the department, enter a judgment in the amount provided by the notice of determination. The judgment has the same effect as a judgment entered in a civil action.
6. In addition to the liability under (a) of this section for the amount of benefits improperly paid, an individual who is disqualified from receipt of benefits under AS 23.20.387 is liable to the department for a penalty in an amount equal to 50 percent of the benefits that were obtained by knowingly making a false statement or misrepresenting a material fact, or knowingly failing to report a material fact, with the intent to obtain or increase benefits under this chapter. The department shall deposit into the unemployment trust fund account (AS 23.20.135(a) ) a minimum of 30 percent of the penalties collected because of benefits that were obtained by knowingly making a false statement or misrepresenting a material fact, or knowingly failing to report a material fact, with the intent to obtain or increase benefits under this chapter.

History. (§ 751 ch 5 ESLA 1955; am § 1 ch 43 SLA 1965; am § 62 ch 9 SLA 1980; am § 4 ch 114 SLA 1981; am § 16 ch 115 SLA 1982; am § 25 ch 100 SLA 1989; am §§ 13 — 15 ch 43 SLA 1996; am § 7 ch 130 SLA 2004; am § 7 ch 50 SLA 2013)

Revisor’s notes. —

Subsection (d) was enacted as (e) and relettered in 1965, at which time former subsection (d) was relettered as (e).

Administrative Code. —

For employment security, see 8 AAC 85.

Effect of amendments. —

The 2004 amendment, effective June 30, 2004, substituted “obtained by an individual who is not entitled” for “fraudulently obtained” in subsection (c).

The 2013 amendment, effective July 1, 2013, deleted the second sentence, which read “The department may, under regulations adopted under this chapter, waive the collection of a penalty under this section.”; at the end of the present second sentence substituted “the unemployment trust fund account” to the end for “the general fund the penalty that it collects”.

Legislative history reports. —

For governor’s transmittal letter for ch. 130, SLA 2004 (HB 490), which recommends changes to ensure that this chapter complies with federal law requirements and amends (c) of this section, see 2004 House Journal 2613 — 2614.

For governor’s transmittal letter for ch. 50, SLA 2013 (HB 76), see 2013 House Journal 70 — 71.

Sec. 23.20.392. Deductions from back pay awards.

An employer who makes a deduction from a back pay award to an insured worker because of the insured worker’s receipt of benefits under this chapter for which the insured worker is ineligible by reason of the back pay award, shall pay into the unemployment trust fund an amount equal to the amount of the deduction. If an employer making a payment under this section has already reimbursed the department for the benefits under AS 23.20.276 and 23.20.277 , the account of the employer shall be properly credited. The insured worker’s liability under AS 23.20.390 shall be reduced by the amount paid by the employer under this section.

History. (§ 17 ch 115 SLA 1982)

Sec. 23.20.395. Waiver of rights void.

1. An agreement by an individual to waive, release, or commute the individual’s right to benefits or any other rights under this chapter is void.
2. An agreement by an individual in the employ of a person or concern to pay all or a portion of an employer’s contributions required under this chapter from the employer is void.
3. An employer may not make or require or accept a deduction from wages to finance the employer’s contributions required from the employer, or require or accept a waiver of any right under this chapter by an employee.  An employer or officer or agent of an employer who violates a provision of this section upon conviction is punishable, for each offense, by a fine of not more than $1,000, or by imprisonment for not more than six months, or by both.

History. (§ 761 ch 5 ESLA 1955)

Sec. 23.20.400. Limitation of fees.

1. An individual claiming benefits may not be charged a fee of any kind in a proceeding under this chapter by the department or its representatives, or by a court or an officer of a court.  An individual claiming benefits in a proceeding before the department or its representatives or a court may be represented by counsel or other authorized agent; but the counsel or agent may not charge or receive for services more than an amount approved by the department or the court.
2. A person who violates a provision of this section upon conviction is punishable, for each offense, by a fine of not more than $500, or by imprisonment for not more than six months, or by both.

History. (§ 762 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.401. Child support interception.

1. Notwithstanding any other provision of this chapter, an individual filing a new claim for unemployment compensation must disclose whether child support obligations as defined in (h) of this section are owed by that individual.  If the individual discloses that child support obligations are owed and the individual is determined to be eligible for unemployment compensation, the department shall notify the child support services agency of the Department of Revenue that the individual has been determined to be eligible for unemployment compensation.
2. The department shall, unless the obligor and obligee agree otherwise, deduct and withhold from unemployment compensation payable to an individual who owes child support obligations as defined in (h) of this section
   1. the amount specified by the individual to the department to be deducted and withheld under this subsection, if neither (2) nor (3) of this subsection is applicable;
   2. the amount specified in an agreement submitted to the department under 42 U.S.C. 654(19)(B)(i) (sec. 454(19)(B)(i), Social Security Act), by the child support services agency of the Department of Revenue, unless (3) of this subsection is applicable; or
   3. any amount required to be deducted and withheld through legal process, as defined in 42 U.S.C. 662(e) (Sec. 462(e), Social Security Act), properly served upon the department.
3. The child support services agency may order the department to deduct and withhold the allowance paid for a dependent minor child under AS 23.20.350(f) , if the child support services agency finds that the individual claiming the allowance has a support obligation to the child and the child is not in the physical custody of the individual and is dependent on the individual for more than 50 percent of support.
4. The department shall pay an amount deducted and withheld under (b) and (c) of this section to the child support services agency of the Department of Revenue.
5. An amount deducted and withheld under (b) and (c) of this section shall for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by that individual to the child support services agency of the Department of Revenue in satisfaction of the individual’s child support obligations.
6. In (a) — (e) of this section, “unemployment compensation” means compensation payable under this chapter, including amounts payable under an agreement under a federal law providing for compensation, assistance, or allowances with respect to unemployment.
7. This section applies only if appropriate arrangements have been made for reimbursement by the child support services agency of the Department of Revenue for the administrative costs incurred by the department under this section.
8. In this section, “child support obligations” includes only obligations that are being enforced under a plan described in 42 U.S.C. 654 (§ 454, Social Security Act), which has been approved by the United States Secretary of Health and Human Services under 42 U.S.C. 651-665 (Part D of Title IV of the Social Security Act).

History. (§ 18 ch 115 SLA 1982; am § 1 ch 68 SLA 1988; am § 36 ch 41 SLA 2009)

Revisor’s notes. —

In 2004, “child support enforcement agency” was changed to “child support services agency” in this section in accordance with § 12(a), ch. 107, SLA 2004.

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, in (b)(2), substituted “42 U.S.C. 654(19)(B)(i) (sec. 454(19)(B)(i), Social Security Act)” for “section 42 U.S.C. 654(20)(B)(i) (sec. 454 (20)(B)(i), Social Security Act)”.

Sec. 23.20.403. Voluntary income tax withholding.

1. When an individual files a new claim for unemployment compensation, the department shall advise the individual that
   1. unemployment compensation benefits are subject to federal income tax;
   2. federal requirements exist pertaining to estimated federal tax payments;
   3. the individual may elect to have federal income tax deducted and withheld from the individual’s payment of unemployment compensation benefits at the amount specified in 26 U.S.C. (Internal Revenue Code); and
   4. the individual is permitted to change a previously elected status for the withholding of federal income tax.
2. Amounts deducted for federal income taxes and withheld from unemployment compensation benefits shall remain in the unemployment fund until transferred to the federal Internal Revenue Service as payment of federal income tax.
3. The department shall comply with legal requirements of the federal Department of Labor and the Internal Revenue Service regarding the deduction and withholding of federal income tax.

History. (§ 16 ch 43 SLA 1996)

Sec. 23.20.405. Assignment void; exemption of benefits.

1. An assignment, pledge, or encumbrance of a right to benefits which are or may become due or payable under this chapter is void.
2. [Repealed, § 14 ch 62 SLA 1982.]
3. [Repealed, § 14 ch 62 SLA 1982.]
4. A waiver of an exemption provided in this section is void.
5. Benefits paid or payable under this chapter are exempt from levy to enforce the collection of a debt as provided in AS 09.38 (exemptions).

History. (§ 763 ch 5 ESLA 1955; am § 4 ch 62 SLA 1982)

Sec. 23.20.406. Extended benefits.

1. Except when the result would be inconsistent with other provisions of this chapter, the provisions of this chapter which apply to claims for or the payment of regular benefits apply to claims for and the payment of extended benefits.
2. An individual is eligible to receive extended benefits with respect to any week of unemployment in the individual’s eligibility period if the department finds that with respect to that week the individual
   1. is an “exhaustee” as defined in AS 23.20.409 ; and
   2. has otherwise satisfied the requirements of this chapter for the receipt of regular benefits.
3. Notwithstanding (a) and (b) of this section, an individual is ineligible for payment of extended benefits for any week of unemployment in the individual’s eligibility period if the department finds that during that period the individual failed to
   1. accept an offer of suitable work as defined under (k) of this section or failed to apply for suitable work to which the individual was referred by the department; or
   2. actively seek work as prescribed under (f) of this section, except that the eligibility of the individual will be determined under AS 23.20.378 without regard to the disqualification provisions otherwise applicable under (d) of this section if the individual is not actively engaged in seeking work because the individual is
      1. summoned for jury duty before a court of the United States or any state;
      2. hospitalized for treatment of an emergency or life-threatening condition; or
      3. attending an approved vocational training course under AS 23.20.382 .
4. An individual who has been found ineligible for extended benefits under (c) of this section shall be denied benefits beginning with the first day of the week following the week in which the failure occurred and until the individual has been employed in each of four subsequent weeks and has earned remuneration equal to not less than four times the extended weekly benefit amount, excluding the allowance for dependents.
5. An individual may not be denied extended benefits for failure to accept an offer of or referral to a job that is suitable work as defined in (l) of this section if
   1. the job was not offered to that individual in writing and was not listed with the employment service;
   2. the failure would not result in a denial of benefits under the definition of suitable work for regular benefit claimants in AS 23.20.385 to the extent that the criteria of suitability in that section are consistent with (l) of this section; or
   3. the individual furnishes satisfactory evidence to the department that the prospects for obtaining work in the customary occupation of the individual within a reasonably short period are good; if the evidence is satisfactory for this purpose, the department shall determine whether any work is suitable for that individual in accordance with the definition of suitable work in AS 23.20.385 .
6. For the purposes of (c)(2) of this section, an individual is considered to be actively seeking work during a week if the individual furnishes evidence in writing to the department that the individual has engaged in a systematic and sustained effort to obtain work during that week.
7. The employment service shall refer an individual who is entitled to extended benefits under this chapter to any suitable work that meets the criteria prescribed in (l) of this section.
8. An individual is not eligible to receive extended benefits for any week of unemployment in the individual’s eligibility period if the individual has been disqualified for benefits because the individual voluntarily left work, was discharged for misconduct, or refused an offer of suitable work, unless the disqualification imposed for those reasons has been terminated in accordance with AS 23.20.379(d) .
9. Except as provided in (j) of this section, an individual is not eligible for extended benefits for a week of unemployment if
   1. the individual files a claim for extended benefits which are payable under this chapter for that week;
   2. the claim is an interstate claim filed in any state in accordance with the interstate benefit payment arrangement under AS 23.20.085 ; and
   3. an extended benefit period is not in effect for the week in the state in which the interstate claim is filed.
10. Subsection (i) of this section does not apply to the first two weeks for which extended benefits are payable to an individual, determined without regard to (i) of this section, under an interstate claim filed in accordance with AS 23.20.085 .
11. Notwithstanding (a) and (b) of this section, an individual is not eligible for extended benefits unless, in the base period determined with respect to the individual’s applicable benefit year, the individual has been paid, for employment covered by this chapter, total wages that equal or exceed
    1. 40 times the weekly benefit amount, including any allowance for dependents, which is payable to the individual during the individual’s applicable benefit year; or
    2. 1.5 times the individual’s wages during the calendar quarter of the base period in which the individual’s wages were the highest.
12. In this section, “suitable work” means any work that is within the individual’s capabilities, if
    1. the gross average weekly remuneration for the work
       1. exceeds the sum of
          1. the individual’s average weekly benefit amount as determined under AS 23.20.407 , plus
          2. the amount, if any, of supplemental unemployment benefits as defined in 26 U.S.C. 501(c)(17)(D) (Internal Revenue Code of 1954) that are payable to the individual for that week; and
       2. equals or exceeds the greater of
          1. the minimum wages provided by 29 U.S.C. 206(a)(1) (§ 6(a)(1), Fair Labor Standards Act of 1938), without regard to any exemption; or
          2. the state minimum wage; and
    2. the work is in accordance with 26 U.S.C. 3304(a)(5) (Internal Revenue Code of 1954), and AS 23.20.385(a) .

History. (§ 1 ch 1 SLA 1971; am §§ 5, 6 ch 114 SLA 1981; am § 19 ch 115 SLA 1982; am § 12 ch 106 SLA 1984; am § 3 ch 28 SLA 1993; am § 17 ch 43 SLA 1996)

Revisor’s notes. —

Subsections (i) and (j) were enacted as AS 23.20.408(i) and (j) and renumbered in 1981. Subsection ( l ) was enacted as (i) and relettered as (k) in 1981 and relettered again as ( l ) in 1996. Subsection (k) was formerly ( l ); relettered in 1996.

Sec. 23.20.407. Weekly extended benefit amount; total payable.

1. The weekly extended benefit amount payable to an individual for a week of total unemployment in the individual’s eligibility period is an amount equal to the weekly benefit amount, including the allowance for dependents, payable to the individual during the applicable benefit year.
2. The total extended benefit amount payable to any eligible individual with respect to the individual’s applicable benefit year is the least of the following amounts:
   1. 50 percent of the total amount of regular benefits, including dependents’ allowances, which were payable to the individual under this chapter in the individual’s applicable benefit year;
   2. 13 times the weekly benefit amount, including dependents’ allowances, which was payable to the individual under this chapter for a week of total unemployment in the applicable benefit year; or
   3. 39 times the weekly benefit amount, including dependents’ allowances, which was payable to the individual under this chapter for a week of total unemployment in the applicable benefit year, reduced by the total amount of regular benefits which were paid or considered paid to the individual under this chapter with respect to the benefit year.
3. Notwithstanding any other provision of this chapter, if the benefit year of an individual ends within an extended benefit period, the remaining balance of extended benefits that the individual would, but for this section, be entitled to receive in the extended benefit period, with respect to weeks of unemployment beginning after the end of the benefit year, shall be reduced by the number of weeks for which the individual received an amount as a trade readjustment allowance within the benefit year multiplied by the individual’s weekly benefit amount for extended benefits. However, the extended benefits may not be reduced below zero.
4. During a high unemployment period, as described in AS 23.20.408(i) , the total extended benefit amount payable to an eligible individual with respect to the individual’s applicable benefit year equals the lowest amount calculated under the following:
   1. 80 percent of the total amount of regular benefits, including dependents’ allowances, that were payable to the individual under this chapter in the individual’s applicable benefit year;
   2. 20 times the weekly benefit amount, including dependents’ allowances, that was payable to the individual under this chapter for a week of total unemployment in the applicable benefit year; or
   3. 46 times the weekly benefit amount, including dependents’ allowances, that was payable to the individual under this chapter for a week of total unemployment in the applicable benefit year, reduced by the total amount of regular benefits that were paid or considered by the department to be paid to the individual under this chapter with respect to the benefit year.

History. (§ 1 ch 1 SLA 1971; am § 63 ch 9 SLA 1980; am § 20 ch 115 SLA 1982; am § 4 ch 28 SLA 1993)

Sec. 23.20.408. Extended benefit periods.

1. When an extended benefit period is to become effective in this state as a result of a state “on” indicator, or an extended benefit period is to be terminated in this state as a result of a state “off” indicator, the department shall make an appropriate public announcement.
2. An extended benefit period may not begin by reason of a state “on” indicator before the 14th week following the end of a prior extended benefit period which was in effect with respect to this state.
3. [Repealed, § 25 ch 122 SLA 1977.]
4. [Repealed, § 33 ch 115 SLA 1982.]
5. [Repealed, § 33 ch 115 SLA 1982.]
6. Except as provided in (g)(2) of this section, there is a state “on” indicator for a week if the
   1. rate of insured unemployment under this chapter for the period consisting of that week and the immediately preceding 12 weeks either equaled or exceeded
      1. 120 percent of the average rate of insured unemployment for the corresponding 13-week period in each of the preceding two calendar years and equaled or exceeded five percent; or
      2. six percent, without regard to the rate of insured unemployment in the two previous years; or
   2. average rate of seasonally adjusted total unemployment, as determined by the United States Secretary of Labor, for the period consisting of the most recent three months for which data for all states are published before the end of that week equals or exceeds
      1. 6.5 percent; and
      2. 110 percent of that average for either or both of the corresponding three-month periods ending in the two preceding calendar years.
7. There is a state “off” indicator for a week if,
   1. for the period consisting of that week and the immediately preceding 12 weeks, there was not an “on” indicator under (f) of this section; or
   2. notwithstanding (f) of this section, in that week the state is otherwise eligible to participate in the emergency unemployment compensation program in 26 U.S.C. 3304; however, the department must trigger “off” to enable the state to participate in that program.
8. In (f) of this section, “rate of insured unemployment” means the percentage derived by dividing (1) the average weekly number of individuals filing claims for regular compensation in this state for weeks of unemployment with respect to the most recent 13 consecutive week period, as determined by the department on the basis of its reports to the United States Secretary of Labor, by (2) the average monthly employment covered under this chapter for the first four of the most recent six completed calendar quarters ending before the close of that 13-week period. Computations required by this subsection shall be made by the department in accordance with regulations prescribed by the United States Secretary of Labor.
9. The state is in a high unemployment period if the circumstances set out in (f)(2) of this section are present, but the average rate of seasonally adjusted total unemployment equals or exceeds eight percent.

History. (§ 1 ch 1 SLA 1971; am §§ 1, 2 ch 5 SLA 1975; am §§ 8 — 11, 25 ch 122 SLA 1977; am § 64 ch 9 SLA 1980; am §§ 21 — 24, 33 ch 115 SLA 1982; am §§ 5 — 7 ch 28 SLA 1993; am § 37 ch 41 SLA 2009)

Revisor’s notes. —

In 1993, “; however” was substituted for “, but” in (g)(2) of this section to conform to the style of the Alaska Statutes.

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, in (h), substituted “In (f) of this section” for “In (f) and (g) of this section”.

Sec. 23.20.409. Definitions for AS 23.20.406 — 23.20.409.

In AS 23.20.406 — 23.20.409 ,

1. “applicable benefit year” means, with respect to an individual, the current benefit year if, at the time an initial claim for extended benefits is filed, the individual has an unexpired benefit year only in the state against which the claim is filed, or, in any other case, the individual’s most recent benefit year; the most recent benefit year, for an individual who has unexpired benefit years in more than one state when the initial claim for extended benefits is filed, is the benefit year with the latest ending date or, if the benefit years have the same ending date, the benefit year in which the latest continued claim for regular compensation was filed; extended benefits are not payable under this section unless the “applicable benefit year” was a benefit year established under this chapter;
2. “eligibility period” of an individual means the period consisting of the weeks in the individual’s benefit year which begin in an extended benefit period and, if the individual’s benefit year ends within the extended benefit period, any weeks thereafter which begin in that period;
3. “exhaustee” means an individual who, with respect to any week of unemployment in the individual’s eligibility period, has no right to unemployment benefits or allowances, as the case may be, under the Railroad Unemployment Insurance Act or under other federal laws which are specified in regulations issued by the United States Secretary of Labor and has not received and is not seeking unemployment benefits under the unemployment compensation law of Canada, but if the individual is seeking these benefits and the appropriate agency finally determines that the individual is not entitled to benefits under that law the individual is considered an exhaustee; and either
   1. has received, before that week of unemployment, all of the regular benefits that were available to the individual under this chapter or any other law, including dependents’ allowances and benefits payable to federal civilian employees and ex-servicemen under 5 U.S.C. 8501-8525, in the individual’s current benefit year that includes that week; however, for the purposes of this paragraph, an individual is considered to have received all of the regular benefits that were available to the individual even though the individual may subsequently be determined to be entitled to added regular benefits as a result of a pending appeal with respect to wages in covered employment that were not considered in the original monetary determination to be in the individual’s benefit year; or
   2. the individual’s benefit year having expired before that week, has no or insufficient wages in covered employment on the basis of which the individual could establish a new benefit year that would include that week;
4. “extended benefit period” means a period which
   1. begins with the third week after a week for which there is a state “on” indicator; and
   2. ends with either of the following weeks, whichever occurs later:
      1. the third week after the first week for which there is a state “off” indicator; or
      2. the 13th consecutive week of that period;
5. “extended benefits” means benefits, including benefits payable to federal civilian employees and to ex-servicemen under 5 U.S.C. 8501-8525, payable to an individual under the provisions of AS 23.20.406 — 23.20.409 for weeks of unemployment in the individual’s eligibility period;
6. “regular benefits” means benefits payable to an individual under this chapter or under any other law, including benefits payable to federal civilian employees and to ex-servicemen under 5 U.S.C. 8501-8525, other than extended benefits.

History. (§ 1 ch 1 SLA 1971; am § 24 ch 71 SLA 1972; am § 12 ch 122 SLA 1977; am §§ 25, 26 ch 115 SLA 1982)

Revisor’s notes. —

For effective date of 1977 amendments, see the Revisor’s notes at AS 23.20.085 . This section was reorganized in 1984 to place the defined terms in alphabetical order.

Sec. 23.20.410. Appeal tribunals.

The department shall appoint one or more referees, each of whom constitutes an appeal tribunal to hear and decide appeals from determinations and redeterminations.

History. (§ 801 ch 5 ESLA 1955)

Sec. 23.20.415. Review by appeal tribunal.

1. A party entitled to notice of determination provided in AS 23.20.340 may file an appeal from the determination to an appeal tribunal within the time specified in that section. However, an appeal from a determination which involves AS 23.20.383 shall be made to the department.  The parties to an appeal from a determination shall include all those entitled to notice of the determination and a properly designated representative of the department.
2. If an appeal involves a question whether service constitutes employment, the tribunal shall give notice of the appeal and the issues involved to a properly designated representative of the department and to the employing unit for which the service was performed.  The employing unit, if not already a party, shall then become a party to the appeal.
3. If an appeal from a determination is pending on the date a redetermination is issued, the appeal unless withdrawn shall be treated as an appeal from the redetermination.  Appeals may be withdrawn at the request of the appellant and with the permission of the appeal tribunal if the record preceding the appeal and the request for the withdrawal support the correctness of the determination, and indicate that no coercion or fraud is involved in the withdrawal.
4. In addition to the issues raised by the determination which is appealed, the tribunal may hear and decide additional issues affecting the claimant’s rights to benefits if, by the date of hearing, the department has issued no final determination concerning the additional issues and the parties involved have been notified of the hearing and of the pendency of the additional issues.

History. (§ 802 ch 5 ESLA 1955; am § 65 ch 9 SLA 1980)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.420. Hearing procedure and record.

1. Each party shall be promptly given a reasonable opportunity for fair hearing.  An appeal tribunal shall inquire into and develop all facts bearing on the issues and shall receive and consider evidence without regard to statutory and common law rules.  The appeal tribunal shall include in the record and consider as evidence all records of the department that are material to the issues.
2. The department shall adopt regulations governing the manner of filing appeals and the conduct of hearings and appeals consistent with the provisions of this chapter.  A record shall be kept of all testimony and proceedings in an appeal, but testimony need not be transcribed unless further review is initiated.
3. Witnesses subpoenaed shall be allowed fees at a rate fixed by the department.  The fees of witnesses subpoenaed on behalf of the department or a claimant are considered part of the expense of administering this chapter.
4. A member of the department, or of an appeal tribunal, or a person acting on behalf of the department may not participate in an appeal in which the person has an interest.

History. (§ 803 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.425. Consolidated appeals.

1. When the same or substantially similar evidence is material to the matter in issue with respect to more than one individual, as long as no party is prejudiced, (1) the same time and place for considering all cases may be fixed; (2) hearings on the cases may be jointly conducted; (3) a single record of the proceedings may be made; and (4) evidence introduced with respect to one proceeding may be considered as introduced in the others.
2. However, a party who would be prejudiced by a proceeding under (a) of this section may have a separate hearing upon demand.

History. (§ 804 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.430. Notice of decision and time for appeal.

After a hearing an appeal tribunal shall promptly make findings and conclusions and on the basis of them shall affirm, modify, or reverse the determination. Each party shall be promptly given a copy of the decision, the supporting findings, and the conclusions. This decision is final unless further review is initiated under AS 23.20.435 within 30 days after the decision is mailed to each party at the party’s last address of record or delivered to the party. The period within which further review may be initiated may be extended for a reasonable period of time upon a showing that the application was delayed as a result of circumstances beyond the party’s control.

History. (§ 805 ch 5 ESLA 1955; am § 66 ch 9 SLA 1980; am § 18 ch 43 SLA 1996)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.435. Review by department.

1. An appeal to the department by a party is a matter of right if the decision of the appeal tribunal reverses or modifies the determination of the department, or if a question arising under AS 23.20.383 is presented.  In all other cases further appeal to the department is permitted only at the discretion of the department.
2. The department on its own motion may initiate a review of a decision or determination of an appeal tribunal within 30 days after the date of the decision. The department may affirm, modify, or reverse the findings or conclusions of the appeal tribunal solely on the basis of evidence previously submitted, or upon the basis of additional evidence that it may take or direct to be taken.

History. (§ 806 ch 5 ESLA 1955; am § 67 ch 9 SLA 1980; am § 19 ch 43 SLA 1996)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.440. Removal of appeal to department.

The department may remove to itself or transfer to another appeal tribunal an appeal pending before an appeal tribunal. In an appeal removed to the department, before a fair hearing has been completed, the parties shall be given a fair hearing by the department as required by AS 23.20.410 — 23.20.470 with respect to proceedings before an appeal tribunal.

History. (§ 808 ch 5 ESLA 1955)

Sec. 23.20.445. Notice of decision of department and judicial review.

Each party, including the properly designated representative of the department, shall be promptly given a copy of the decision and the supporting findings and conclusions of the department. The decision is final unless a party initiates judicial review by filing an appeal in the superior court as provided in the Rules of Appellate Procedure of the State of Alaska. For the purpose of judicial review, an appeal tribunal’s decision from which an application for appeal has been denied by the department is considered the decision of the department, except that the time for initiating judicial review runs from the date of the mailing or delivery of the notice of the denial of the application for appeal by the department.

History. (§ 809(a) ch 5 ESLA 1955; am § 68 ch 9 SLA 1980)

Sec. 23.20.450. Conclusiveness of final determinations and decisions.

1. Except to the extent there is a redetermination under AS 23.20.330 — 23.20.405 , all final determinations and decisions are conclusive upon employing units with notice, the department, and the claimant.  A final determination or decision as to benefit rights is not subject to collateral attack by an employing unit regardless of notice.
2. The department, or appeal tribunal, shall reopen a determination or decision or revoke permission for withdrawal of an appeal if (1) it finds that a worker or employer has been defrauded or coerced in connection with the determination, decision, or withdrawal of the appeal, and (2) the defrauded or coerced person informs the appropriate officer or body of the fraud or coercion within 60 days after the person has become aware of the fraud or within 60 days after the coercion has been removed.

History. (§ 810 ch 5 ESLA 1955)

Sec. 23.20.455. Rule of decision and certification to department.

1. Final decisions of the department and the principles of law declared in their support are binding in all subsequent proceedings under this chapter involving similar questions unless expressly or impliedly overruled by a later decision of the department or of a court. Final decisions of appeal tribunals and the principles of law declared in their support are binding on the employees and representatives of the department and are persuasive authority in subsequent appeal tribunal proceedings.
2. If in a subsequent proceeding the department or an appeal tribunal has serious doubt as to the correctness of a principle previously declared by an appeal tribunal or by the department, or if there is an apparent inconsistency or conflict in final decisions of comparable authority, then the findings of fact in the case may be certified, together with the question of law involved, to the department.  After giving notice and reasonable opportunity for hearing upon the law to all parties to the proceedings, the department shall certify to the appropriate employees or representatives of the department or appeal tribunal and the parties its answer to the question submitted; or the department in its discretion may remove to itself the entire proceeding as provided in AS 23.20.440 and give its decision upon the entire case.

History. (§ 811 ch 5 ESLA 1955; am § 20 ch 43 SLA 1996)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.460. Limitation of fees.

A claimant may not be charged fees or costs of any kind by the department, its representative, an appeal tribunal, a court, or a court officer. However, a court may assess costs against the claimant if it determines that the proceedings for judicial review have been instituted without reasonable grounds.

History. (§ 812 ch 5 ESLA 1955)

Sec. 23.20.465. Representation of claimant.

A claimant in a proceeding before the department or an appeal tribunal may be represented by counsel or other authorized agent. The counsel or agent may not charge or receive for services more than an amount approved by the department.

History. (§ 813 ch 5 ESLA 1955)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.470. Attorney fees.

1. An attorney at law representing a claimant on appeal to the courts is entitled to reasonable counsel fees as fixed by the court and necessary court costs and printing disbursements as fixed by the court.
2. The department shall pay the counsel fees, costs, and disbursements out of employment security administration funds in a court appeal (1) from an administrative or judicial decision favorable in whole or in part to the claimant, (2) by a claimant from a department decision which reverses a tribunal decision in the claimant’s favor, (3) as a result of which the claimant is awarded benefits, or (4) by a claimant from a decision by a tribunal, the department, or court which was not unanimous.

History. (§ 814 ch 5 ESLA 1955; am § 69 ch 9 SLA 1980)

Collateral references. —

Workers’ compensation: availability, rate, or method of calculation of interest on attorney’s fees or penalties. 79 ALR5th 201.

Sec. 23.20.475. Amendment or repeal.

There may be no vested right of any kind against the state as the result of enactment, amendment, or repeal of this chapter.

History. (§ 1002 ch 5 ESLA 1955)

Sec. 23.20.480. Termination.

1. If the Federal Unemployment Tax Act is amended or repealed by Congress, or is held unconstitutional by the United States Supreme Court, with the result that no portion of the contributions required under this chapter may be credited against the tax imposed by the federal Act, the Department of Labor and Workforce Development shall send immediate notice of the fact to the governor of the state.  Because of the danger to the welfare of the people of the state the governor may then call a special session of the legislature, if necessary, so that it may take measures to effectuate the purpose of this chapter or to end its operations.
2. Pending the determination by the legislature, the department shall requisition from the unemployment trust fund all money in the fund to its credit.  This money, together with any other money in the unemployment fund, as long as the money is available, shall be used for the payment of benefits in accordance with this chapter.

History. (§ 1004 ch 5 ESLA 1955)

Revisor’s notes. —

In 1999, in (a) of this section, “Department of Labor” was changed to “Department of Labor and Workforce Development” in accordance with § 90, ch. 58, SLA 1999.

Sec. 23.20.485. False statement to secure benefits.

A person who makes a false statement or misrepresentation knowing it is false or who knowingly fails to disclose a material fact, with intent to obtain or increase a benefit or other payment under this chapter or under an employment security law of another state, of the federal government, or of a foreign government, either for that person or another, is guilty of a class B misdemeanor. Each false statement or misrepresentation or failure to disclose a material fact is a separate offense.

History. (§ 901 ch 5 ESLA 1955; am § 70 ch 9 SLA 1980)

Cross references. —

For fines and sentences for class B misdemeanors, see AS 12.55.035 and 12.55.135 .

Sec. 23.20.486. Participation in the federal offset program.

In addition to any remedies authorized by this chapter, the department may offset any covered unemployment compensation debt against a claimant’s federal income tax refund in accordance with 26 U.S.C. 6402.

History. (§ 8 ch 50 SLA 2013)

Effective dates. —

Section 14, ch. 50, SLA 2013 makes this section effective July 1, 2013.

Legislative history reports. —

For governor’s transmittal letter for ch. 50, SLA 2013 (HB 76), see 2013 House Journal 70 — 71.

Sec. 23.20.490. Acts of employer prohibited.

1. An employing unit or an officer or agent of an employing unit may not
   1. make a false statement or representation knowing it is false;
   2. knowingly fail to disclose a material fact to prevent or reduce the payment of benefits to an individual entitled to them, or to avoid or reduce a contribution or other payment required from an employing unit under this chapter; or
   3. knowingly fail or refuse to make a contribution or other payment, or to furnish a report required by this chapter or by authority granted under this chapter, or to produce or permit the inspection or copying of records as required by this chapter.
2. An employing unit or officer or agent of an employing unit who violates (a) of this section is guilty of a class A misdemeanor.

History. (§ 902 ch 5 ESLA 1955; am § 71 ch 9 SLA 1980)

Cross references. —

For fines and sentences for class A misdemeanors, see AS 12.55.035 and 12.55.135 .

Sec. 23.20.495. Noncompliance with subpoena of agency.

A person who, without just cause, fails or refuses to attend and testify or to answer a lawful inquiry or to produce books, papers, correspondence, memoranda, and other records, if it is in the person’s power to do so, in obedience to a subpoena of the department, an appeal tribunal, or an authorized representative of any of them, upon conviction, is punishable by a fine of not more than $200, or by imprisonment for not more than 60 days, or by both. Each day the failure or refusal continues is a separate offense.

History. (§ 903 ch 5 ESLA 1955)

Sec. 23.20.497. Binding effect of department decisions.

1. A finding of fact or law, judgment, conclusion, or final order made with respect to a claim for unemployment compensation under this chapter is not conclusive or binding in any separate or subsequent action or proceeding in another forum concerning proceedings not under this chapter, regardless of whether the prior action was between the same or related parties or involved the same facts.
2. In this section, “action” means a court or administrative proceeding not brought under this chapter or an arbitration proceeding.

History. (§ 21 ch 43 SLA 1996; am § 8 ch 130 SLA 2004)

Sec. 23.20.500. Violation of statute or regulations.

A person who wilfully violates a provision of this chapter or an order or regulation under it, the violation of which is made unlawful or the observance of which is required under this chapter, and for which a penalty is not prescribed in this chapter or provided by another applicable statute, upon conviction, is punishable by a fine of not more than $200, or by imprisonment for not more than 60 days, or by both.

History. (§ 904 ch 5 ESLA 1955)

Sec. 23.20.505. Unemployed defined.

1. An individual is considered “unemployed” in a week during which the individual performs no services and for which no wages are payable to the individual, or in a week of less than full-time work if the wages payable to the individual for the week are less than one and one-third times the individual’s weekly benefit amount, excluding the allowance for dependents, plus $50.
2. [Repealed, § 33 ch 115 SLA 1982.]
3. [Repealed, § 33 ch 115 SLA 1982.]
4. An individual is not considered “unemployed” in a week if
   1. the individual is not performing services during that week because the individual is on leave from the regular employer of the individual for a period of four weeks or less; and
   2. the leave is part of a work schedule consisting of alternating periods of work and leave in which the hours of work for one complete period of work and leave average at least 40 hours per week.

History. (§ 254 ch 5 ESLA 1955; am § 5 ch 169 SLA 1957; am § 72 ch 9 SLA 1980; am §§ 27, 33 ch 115 SLA 1982; am § 13 ch 106 SLA 1984)

Administrative Code. —

For employment security, see 8 AAC 85.

Sec. 23.20.510. Pay period.

1. If the service performed during one-half or more of a pay period by an individual for an employing unit constitutes employment, all the service of the individual for the period is considered employment.
2. If the service performed during more than one-half of a pay period by an individual for an employing unit does not constitute employment, then none of the service of the individual for the period is considered employment.
3. In this section, “pay period” means a period of not more than 31 consecutive days for which a payment for service is ordinarily made to the individual by the employing unit.  This section does not apply to service performed in a pay period by an individual for an employing unit when any of the service is excluded because it is subject to an unemployment insurance program established by an Act of Congress.

History. (§ 235 ch 5 ESLA 1955)

Sec. 23.20.515. Earnings of fishermen not subject to contributions. [Repealed, § 26 ch 122 SLA 1977.]

Sec. 23.20.520. Definitions.

In this chapter, unless the context otherwise requires,

1. “American vessel” means a vessel documented or numbered under the laws of the United States, or a vessel not documented or numbered under the laws of the United States nor documented under the laws of a foreign country, if its crew performs service solely for one or more citizens or residents of the United States or corporations organized under the laws of the United States or of a state;
2. “average annual wage” means the amount determined by dividing the total wages paid by covered employers during a 12-month period by the average monthly employment reported by covered employers for the same period;
3. “base period” means the first four of the last five completed calendar quarters immediately preceding the first day of an individual’s benefit year, except that, if an individual would not otherwise be eligible for unemployment compensation because of the use of a base period that does not include the most recently completed calendar quarter immediately preceding the first day of an individual’s benefit year, “base period” means, and eligibility shall be determined using, the four most recently completed calendar quarters before the start of the benefit year;
4. “benefit year” means a period of 52 consecutive weeks beginning at 12:00 a.m. of the Sunday preceding the day that an insured worker first files a request for determination of the worker’s insured status, and, thereafter, the period of 52 consecutive weeks beginning at 12:00 a.m. of the Sunday preceding the day that the insured worker next files the request after the end of the worker’s last preceding benefit year; however, for a worker covered by this paragraph, “benefit year” also means a period of 53 weeks if the filing of a request for determination would result in overlapping any quarter of the base year of a previously filed request for determination; the filing of a notice of unemployment is considered a request for determination of insured status if a current benefit year has not previously been established;
5. “benefits” means the money payments payable to an individual, as provided in this chapter with respect to the individual’s unemployment;
6. “calendar quarter” means the period of three consecutive calendar months ending March 31, June 30, September 30, or December 31;
7. “claimant” means an individual who has filed a request for a determination of insured status, a notice of unemployment, a certification for waiting-week credit, or a claim for benefits;
8. “contribution” and “payment in place of contribution” mean the money payment to be made to the fund, which payments are taxes due to the state;
9. “covered unemployment compensation debt” means
   1. a past due debt for erroneous payment of unemployment compensation under this chapter because of fraud or the person’s failure to report earnings that has become final under this chapter and that remains uncollected;
   2. contributions due to the unemployment trust fund account (AS 23.20.135(a) ) for which a person is liable and that remain uncollected; and
   3. any penalties and interest assessed on the debt;
10. “employer” means (A) an employing unit which for some portion of a day within the calendar year has or had in employment one or more individuals; and (B) for the effective period of its election under AS 23.20.325 , an employing unit which has elected to become subject to this chapter;
11. “employing unit” means one or more departments or other agencies of the state, a political subdivision of the state, a federally recognized tribe, an individual, or a type of organization, partnership, association, trust, estate, joint trust company, insurance company, or domestic or foreign corporation, or the receiver, referee in bankruptcy, trustee, or successor of one of these, or the legal representative of a deceased person, that has or had one or more individuals performing service for it in the state; an individual performing services in the state for an employing unit that maintains two or more separate establishments in the state is considered as employed by a single employing unit for the purposes of this chapter; notwithstanding any provision in this chapter, any employing unit that employs individuals whose services must be covered by the unemployment insurance laws of this state as a condition of approval of the unemployment insurance laws of this state under 26 U.S.C. 3304(a) (Internal Revenue Code of 1954), as amended, will be considered an employer as to those individuals and is subject to contributions on all wages paid or reimbursement payments to cover benefits paid based on services performed, depending on the applicable law;
12. “employment office” means a free public employment office or branch of one operated by this state or another state or territory as a part of a state-controlled system of public employment offices or by a federal agency or an agency of a foreign government charged with the administration of an unemployment insurance program or of free public employment offices;
13. “federally recognized tribe”
    1. means a tribe that is recognized by the United States Secretary of the Interior to exist as an Indian tribe under 25 U.S.C. 479a (Federally Recognized Indian Tribe List Act of 1994);
    2. includes any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized tribe;
14. “fund” means the unemployment compensation fund established by this chapter;
15. “hospital” means any institution primarily engaged in the treatment of emotional or physical disability which provides, on a regular basis, 24-hour-a-day bed care under the supervision of licensed medical personnel and those components, of other institutions, which are primarily engaged in the treatment of emotional or physical disability and which provide, on a regular basis, 24-hour-a-day bed care under the supervision of licensed medical personnel;
16. “institution of higher education” means an educational institution that
    1. admits as regular students only individuals having a certificate of graduation from a high school, or the recognized equivalent of a high school graduation certificate;
    2. is legally authorized in the state in which it is located to provide a program of education beyond high school;
    3. provides an educational program for which it awards a bachelor’s or higher degree, or provides a program that is acceptable for full credit toward either degree, a program of postgraduate or postdoctoral studies, or a program of training to prepare students for gainful employment in a recognized occupation; and
    4. is operated by a federally recognized tribe or is a public or other nonprofit institution;
17. “insured work” means employment for employers;
18. “insured worker” means an individual who, with respect to a base period, meets the wage and employment requirements of AS 23.20.350 ;
19. “municipal agency” means an agency of a municipality of the state; in this paragraph, “municipality” has the meaning given in AS 29.71.800 ;
20. “state” includes the states of the United States of America, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands;
21. “vocational training or retraining course” means a course of vocational or technical training or retraining in schools or classes, including field or laboratory work and related remedial or academic instruction, which is conducted as a program designed to prepare individuals for employment in trades, skills, or crafts; the term “vocational training or retraining course” does not include a program of instruction for an individual, including a transfer credit program of instruction given at a community college, which is intended as credit for a degree from an institution of higher education;
22. “waiting week” means the first week of unemployment for which an individual files a claim during the individual’s benefit year and for which no disqualification is imposed under AS 23.20.360 , 23.20.362 , 23.20.375 , and 23.20.378 — 23.20.387 ;
23. “week” means the period of seven consecutive days which the department may by regulations prescribe.

History. (§§ 202 — 204 ch 5 ESLA 1955; § 205 ch 5 ESLA 1955; §§ 206, 208, 210, 212, 213, 236 — 238, 240, 241, 252, 253 ch 5 ESLA 1955; am § 1 ch 169 SLA 1957; § 13 ch 64 SLA 1959; am § 1 ch 93 SLA 1960; am §§ 10 — 13 ch 106 SLA 1971; am § 24 ch 208 SLA 1975; am § 2 ch 74 SLA 1976; am §§ 13, 14 ch 122 SLA 1977; am §§ 73, 74, 77, 80 ch 9 SLA 1980; am §§ 28, 29 ch 115 SLA 1982; am §§ 29 — 31 ch 21 SLA 1985; am § 16 ch 61 SLA 1995; am § 22 ch 43 SLA 1996; am § 6 ch 51 SLA 2000; am § 9 ch 130 SLA 2004; am §§ 13 — 16 ch 27 SLA 2009; am § 9 ch 50 SLA 2013; am § 19 ch 3 SLA 2017)

Revisor’s notes. —

The contingent amendment to this section made under sec. 33, ch. 122, SLA 1977 never took effect and was repealed by sec. 82, ch. 41, SLA 2009.

This section was reorganized in 1984 to place the defined terms in alphabetical order, in 1990 and 1996 to reflect the deletion of repealed paragraphs, and in 2004, 2009, and 2013 to retain the defined terms in alphabetical order.

Cross references. —

For legislative findings and intent in connection with the 2009 amendments of this section, see § 1, ch. 27, SLA 2009, in the 2009 Temporary and Special Acts.

Administrative Code. —

For employment security, see 8 AAC 85.

Effect of amendments. —

The first 2009 amendment, effective May 26, 2009, in paragraph (10), added “a federally recognized tribe” following “a political subdivision of the state,”; deleted “after January 1, 1937,” preceding “had one or more individuals”; deleted “after December 31, 1971” in three places; in paragraph (14)(D) [now (15)(D)] added “is operated by a federally recognized tribe or”; added paragraph (22) [now (12)]; renumbered former paragraphs (12) through (21) as (13) through (22) respectively; made stylistic changes.

The second 2009 amendment, effective January 1, 2010, in paragraph (3), added the language beginning “except that, if an individual would not otherwise be eligible...”

The 2013 amendment, effective July 1, 2013, added (23) (now (9)).

The 2017 amendment, effective July 1, 2017, in (21), in the first sentence, deleted “, but not limited to,” following “retraining in schools or classes, including”.

Editor’s notes. —

Concerning the amendment to paragraph (5) made by sec. 6, ch. 51, SLA 2000, sec. 7, ch. 51, SLA 2000 provides as follows: “TRANSITION PROVISION. Notwithstanding the change to the definition of ‘benefit year’ enacted by sec. 6 of this Act, for an insured worker who, on October 6, 2001, has an established current benefit year, the definition of ‘benefit year’ as it existed in AS 23.20.520 (5) on October 6, 2001, applies to that worker’s claim under AS 23.20 until that worker’s current benefit year is completed. If an insured worker’s current benefit year under this section ends on a day other than Sunday, the current benefit year is extended until 11:59 p.m. of the Saturday following that ending week.”

Sec. 23.20.525. “Employment” defined.

1. In this chapter, unless the context otherwise requires, “employment” means
   1. service performed by an individual for wages or by an officer of a corporation, including service in interstate commerce;
   2. service performed by an individual who, under (8) of this subsection, has the status of an employee;
   3. service performed by an individual other than an individual who is an employee under (1) or (2) of this subsection who performs services for remuneration for any person
      1. as an agent-driver or commission-driver engaged in distributing meat products, vegetable products, fruit products, bakery products, beverages, or laundry or dry-cleaning services, for the individual’s principal; or
      2. as a traveling or city salesman, other than as an agent-driver or commission-driver, engaged upon a full-time basis in the solicitation on behalf of, and the transmission to, the individual’s principal of orders from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments for merchandise for resale or supplies for use in their business operations; however, for all purposes of this paragraph, the term “employment” includes services described in this subparagraph and (A) of this paragraph only if
         1. the contract of service contemplates that substantially all of the services are to be performed personally by the individual;
         2. the individual does not have a substantial investment in facilities used in connection with the performance of the services, other than in facilities for transportation; and
         3. the services are not in the nature of a single transaction that is not part of a continuing relationship with the person for whom the services are performed;
   4. service performed by an individual in a calendar quarter in the employ of an organization exempt from income tax under 26 U.S.C. 501(a) (Internal Revenue Code), other than an organization described in 26 U.S.C. 401(a), or under 26 U.S.C. 521, if the remuneration for the service is $250 or more; notwithstanding the provisions of this paragraph, services performed by an individual in the employ of a religious, charitable, educational, or other organization described in 26 U.S.C. 501(c)(3) (Internal Revenue Code) that is exempt from income tax under 26 U.S.C. 501(a), constitutes employment for the purposes of this chapter even though remuneration for the services is less than $250 in a calendar quarter, but only if the organization had four or more individuals in employment for some portion of a day in each of 20 different weeks, whether or not the weeks were consecutive, within either the current or preceding calendar year, regardless of whether the individuals were employed at the same moment of time;
   5. service of an individual who is a citizen of the United States, performed outside the United States, except in Canada, in the employ of an American employer, or of this state or of any of its instrumentalities or any of its political subdivisions, other than service that is considered “employment” under the provisions of (9) or (10) of this subsection or the parallel provisions of the law of another state, if
      1. the employer’s principal place of business in the United States is located in this state; or
      2. the employer has no place of business in the United States, but
         1. the employer is an individual who is a resident of this state; or
         2. the employer is a corporation that is organized under the laws of this state; or
         3. the employer is a partnership or a trust and the number of the partners or trustees who are residents of this state is greater than the number who are residents of any one other state; or
      3. none of the criteria in (A) and (B) of this paragraph is met but the employer has elected coverage in this state or, the employer having failed to elect coverage in any state, the individual has filed a claim for benefits, based on service described in this paragraph, under the law of this state;
   6. notwithstanding the provisions of (9) of this subsection, all service performed by an officer or member of the crew of an American vessel or in connection with the vessel, if the operating office, from which the operations of vessels operating on navigable waters inside, or inside and outside the United States are ordinarily and regularly supervised, managed, directed, and controlled, is inside this state;
   7. notwithstanding any other provisions of this section, service with respect to which tax is required to be paid under any federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund or which as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act is required to be covered under this chapter;
   8. service performed by an individual whether or not the common-law relationship of master and servant exists, unless and until it is shown to the satisfaction of the department that
      1. the individual has been and will continue to be free from control and direction in connection with the performance of the service, both under the individual’s contract for the performance of service and in fact;
      2. the service is performed either outside the usual course of the business for which the service is performed or is performed outside of all the places of business of the enterprise for which the service is performed; and
      3. the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed;
   9. an individual’s entire service performed inside or both inside and outside this state if the service is localized in this state; service is considered to be localized inside a state or territory if
      1. the service is performed entirely inside the state or territory; or
      2. the service is performed both inside and outside the state or territory but the service performed outside the state or territory is incidental to the individual’s service inside the state or territory; for example, where it is temporary or transitory in nature or consists of isolated transactions;
   10. an individual’s entire service performed inside or both inside and outside this state if the service is not localized in a state or territory but some of the service is performed in this state and
       1. the individual’s base of operations is in this state;
       2. if there is no base of operations, then the place from which the service is directed or controlled is in this state; or
       3. the individual’s base of operations or place from which the service is directed or controlled is not in a state or territory in which some part of the service is performed, but the individual’s residence is in this state;
   11. service covered by an election under AS 23.20.325 , and service covered by an election approved by the commissioner in accordance with an arrangement under AS 23.20.090(a) during the effective period of the election;
   12. service in the employ of this state or any of its instrumentalities or any political subdivision of this state or any of its instrumentalities or any instrumentality of any of the foregoing and one or more other states or political subdivisions, or in the employ of a federally recognized tribe, if that service is excluded from “employment” under 26 U.S.C. 3306(c)(7) (Federal Unemployment Tax Act, Internal Revenue Code) and is not excluded from “employment” under AS 23.20.526(d) ;
   13. domestic services for an employer who paid wages of $1,000 or more in any calendar quarter in the current or preceding calendar year for those services;
   14. service by an individual in agricultural labor when that service is performed for a person who
       1. during any calendar quarter in either the current or the preceding year, paid remuneration in cash of $20,000 or more to individuals employed in agricultural labor; or
       2. employed in agricultural labor 10 or more individuals for some portion of the day in each of at least 20 different calendar weeks in either the current or the preceding calendar year, whether or not the weeks were consecutive, and regardless of whether the individuals were employed at the same moment of time;
       3. for the purposes of this paragraph, any individual who is a member of a crew furnished by a crew leader to perform service in agricultural labor for any other person shall be treated as an employee of that crew leader
          1. if that crew leader holds a valid certificate of registration under the Farm Labor Contractor Registration Act of 1963, or substantially all the members of that crew operate or maintain tractors, mechanized harvesting or cropdusting equipment, or any other mechanized equipment, which is provided by that crew leader; and
          2. if that individual is not an employee of that other person within the meaning of (8) of this subsection;
       4. for the purposes of this paragraph, in the case of an individual who is furnished by a crew leader to perform service in agricultural labor for any other person and who is not treated as an employee of that crew leader under (C) of this paragraph,
          1. that other person and not the crew leader shall be treated as the employer of that individual; and
          2. that other person shall be treated as having paid cash remuneration to that individual in an amount equal to the amount of cash remuneration paid to that individual by the crew leader, either on behalf of the crew leader or on behalf of that other person, for the service in agricultural labor performed for that other person;
       5. for the purposes of this paragraph, the term “crew leader” means an individual who
          1. furnishes individuals to perform service in agricultural labor for any other person;
          2. pays, either on behalf of the crew leader or on behalf of that other person, the individuals furnished by the crew leader for the service in agricultural labor performed by the individuals; and
          3. has not entered into a written agreement with that farm operator under which the agricultural worker is designated as an employee of that farm operator.
2. In (a)(5) of this section, “American employer” means a person who is
   1. an individual who is a resident of the United States;
   2. a partnership if two-thirds or more of the partners are residents of the United States;
   3. a trust, if all of the trustees are residents of the United States; or
   4. a corporation organized under the laws of the United States or of any state.

History. (§§ 214-216 ch 5 ESLA 1955; § 217 ch 5 ESLA 1955; §§ 218-220 ch 5 ESLA 1955; §§ 220.1, 220.2 ch 5 ESLA 1955, added by §§ 2, 3 ch 169 SLA 1957; § 220.3 ch 5 ESLA 1955, added by § 1 ch 108 SLA 1961; § 221 ch 5 ESLA 1955; § 222 ch 5 ESLA 1955; §§ 223, 224 ch 5 ESLA 1955; §§ 226, 227 ch 5 ESLA 1955; § 228 ch 5 ESLA 1955; §§ 229 — 234 ch 5 ESLA 1955; § 234.1 ch 5 ESLA 1955, added by § 1 ch 46 SLA 1959; § 234.2 ch 5 ESLA 1955, added by § 2 ch 60 SLA 1960; am § 4 ch 169 SLA 1957; am § 1 ch 60 SLA 1960; am § 1 ch 87 SLA 1962; am § 1 ch 22 SLA 1967; am § 14 ch 106 SLA 1971; am §§ 15 — 18 ch 122 SLA 1977; am §§ 75, 76 ch 9 SLA 1980; am § 17 ch 27 SLA 2009; am § 38 ch 41 SLA 2009)

Revisor’s notes. —

The contingent amendment to this section made under sec. 33, ch. 122, SLA 1977 never took effect and was repealed by sec. 82, ch. 41, SLA 2009.

Cross references. —

For legislative findings and intent in connection with the amendment of (a)(12) of this section by § 17, ch. 27, SLA 2009, see § 1, ch. 27, SLA 2009, in the 2009 Temporary and Special Acts.

Effect of amendments. —

The first 2009 amendment, effective June 21, 2009, in (a)(2), substituted “(8)” for “(10)” preceding “of this section”; in (a)(3)(B), deleted “, performed after December 31, 1979,” preceding “only if”; deleted (a)(4), relating to service performed after December 31, 1971 through December 31, 1977 by someone employed by the state in a hospital or institution of higher education; deleted (a)(5), relating to service performed before January 1, 1978 by an employee of a political subdivision of the state or similar; redesignated former (a)(6) through (a)(16) as (a)(4) through (a)(14) respectively; in (a)(4), deleted “after June 30, 1962” following “in a calendar quarter”, and “after December 31, 1971,” following “services performed”; in (a)(5), deleted “after December 31, 1971” following “except in Canada,” and substituted “(9) or (10)” for “(11) or (12)” following “under the provisions of”; in (a)(6), substituted “(9)” for “(11)” following “notwithstanding the provisions of”; in (a)(12), deleted “performed after December 31, 1977,” following “service”; in (a)(13), deleted “performed after December 31, 1977” following “domestic services”; in the introductory language of (a)(14), deleted “performed after December 31, 1977” following “service”; in (a)(14)(C)(ii), substituted “(8)” for “(10)” following “within the meaning of”; in (b), in the lead-in language, substituted “In (a)(5)” for “In (a)(7)”; made stylistic changes throughout the section.

The second 2009 amendment, effective May 26, 2009, in paragraph (a)(14) [now (a)(12)], deleted “after December 31, 1977” following “service performed”; added “or in the employ of a federally recognized tribe,” following “other states or political subdivisions,”; substituted “AS 23.20.526(d) ” for “AS 23.20.526(d)(8) ”.

Sec. 23.20.526. Exclusions from definition of “employment”.

1. In this chapter, unless the context otherwise requires, “employment” does not include
   1. domestic service in a private home, except as provided in AS 23.20.525(a)(13) ;
   2. newsboys’ services in selling or distributing newspapers on the street or from house to house;
   3. service not in the course of the employing unit’s trade or business performed in a calendar quarter by an individual, unless the cash remuneration paid for the service is $50 or more and the service is performed by an individual who is regularly employed by the employing unit to perform the service; an individual is here considered to be regularly employed to perform service not in the course of an employing unit’s trade or business during a calendar quarter only if the individual performs the service for some portion of the day on each of 24 days during the quarter or during the preceding calendar quarter;
   4. service performed by an individual in the employ of the individual’s
      1. son, daughter, or spouse;
      2. parent or legal guardian if the individual was under the age of 21 years and a full-time student during eight of the last 12 months and intends to resume full-time student status within the next four months; and
      3. mother or father if the service is performed by a child under the age of 18;
   5. service with respect to which unemployment insurance is payable under an unemployment insurance program established by an Act of Congress;
   6. service performed in the employ of a foreign government including service as a consular or other officer or employee or a nondiplomatic representative;
   7. service performed in the employ of an instrumentality wholly owned by a foreign government if
      1. the service is of a character similar to that performed in foreign countries by employees of the United States government or its instrumentalities; and
      2. the department finds that the United States Secretary of State has certified to the United States Secretary of the Treasury that the foreign government, with respect to whose instrumentality exemption is claimed, grants an equivalent exemption with respect to similar service performed in the foreign country by employees of the United States government and its instrumentalities;
   8. service performed by an insurance agent, insurance solicitor, real estate broker, real estate salesperson, or securities salesperson to the extent the person is compensated by commission, unless the service is required to be covered under the Federal Unemployment Tax Act, as amended;
   9. notwithstanding AS 23.20.525(a)(9) , service performed by an officer or member of the crew of an American vessel on or in connection with the vessel, if the operating office, from which the operations of the vessel operating on navigable waters inside or inside and outside the United States are ordinarily and regularly supervised, managed, directed, and controlled, is outside this state;
   10. service performed on or in connection with a vessel not an American vessel by an individual if the individual performed service on and in connection with the vessel when outside the United States;
   11. service performed in the employ of the United States government or an instrumentality of the United States exempt under the Constitution of the United States from the contributions imposed by this chapter, except that to the extent that the Congress of the United States permits states to require an instrumentality of the United States to make payments into an unemployment fund under a state employment security law, all of the provisions of this chapter apply to the instrumentalities, and to service performed for the instrumentalities in the same manner, to the same extent, and on the same terms as to all other employers, employing units, individuals, and service; however, if this state is not certified for any year by the United States Secretary of Labor under 26 U.S.C. 3304(c) (Federal Unemployment Tax Act, Internal Revenue Code), the payments required of the instrumentalities with respect to the year shall be refunded by the department from the fund in the same manner and within the same period as is provided in AS 23.20.225 with respect to contributions erroneously collected;
   12. service performed in the employ of another state, or political subdivision of another state, or an instrumentality of another state or political subdivision that is wholly owned by another state or its political subdivision, or a service performed in the employ of an instrumentality of another state or its political subdivisions to the extent that the instrumentality is, with respect to the service, exempt under the Constitution of the United States from the tax imposed by 26 U.S.C. 3301 (Federal Unemployment Tax Act, Internal Revenue Code);
   13. service performed in the employ of an international organization;
   14. service covered by an election approved by the agency charged with the administration of any other state or federal employment security law, in accordance with an arrangement under AS 23.20.090(a) during the effective period of the election;
   15. service performed by an individual in agricultural labor, except as provided in AS 23.20.525(a)(14) ; the term “agricultural labor” means remunerated service
       1. on a farm, in the employ of any person in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife;
       2. in the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of the farm and its tools and equipment, or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of the service is performed on a farm;
       3. in connection with the production or harvesting of any commodity defined as an agricultural commodity in 12 U.S.C. 1141j (Sec. 15(g), Agricultural Marketing Act), as amended, or in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for profit, used exclusively for supplying and storing water for farming purposes;
       4. in the employ of the operator of a farm in handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity; but only if the operator produced more than one-half of the commodity with respect to which the service is performed except as stated in (b) of this section;
       5. in the employ of a group of operators of farms, or a cooperative organization of which the operators are members, in the performance of service described in (D) of this paragraph, but only if the operators produced more than one-half of the commodity with respect to which the service is performed;
       6. on a farm operated for profit if the service is not in the course of the employer’s trade or business;
   16. service performed as a student nurse in the employ of a hospital or a nurses’ training school by an individual who is enrolled and is regularly attending classes in a nurses’ training school chartered or approved in accordance with the laws of this state, and service performed as an intern in the employ of a hospital by an individual who has completed a four-year course in a medical school chartered or approved in accordance with the laws of this state, unless the service is required to be covered under the Federal Unemployment Tax Act;
   17. service performed by an individual on a boat engaged in catching fish or other forms of aquatic animal life under an arrangement with the owner or operator of that boat under which
       1. that individual does not receive any cash remuneration except as provided in (B) of this paragraph;
       2. that individual receives a share of the boat’s, or the boats’ in the case of a fishing operation involving more than one boat, catch of fish or other forms of aquatic animal life or a share of the proceeds from the sale of that catch; and
       3. the amount of that individual’s share depends on the amount of the boat’s, or the boats’ in the case of a fishing operation involving more than one boat, catch of fish or other forms of aquatic animal life; but only if the operating crew of that boat, or each boat from which the individual receives a share in the case of a fishing operation involving more than one boat, is normally made up of fewer than 10 individuals;
   18. service performed as a prospective or impaneled juror in a court;
   19. service performed for a corporation by an employee of the corporation if
       1. the corporation is incorporated under AS 10.06;
       2. the corporation is not a government corporation; and
       3. the employee is an executive officer of the corporation;
   20. service performed by an individual who drives a taxicab whose compensation and written contractual arrangements are as described in AS 23.10.055(a)(13) ;
   21. service of an individual who
       1. directly sells or solicits the sale of consumer products, for resale or otherwise, personally to a prospective consumer in the home or otherwise than in a permanent retail establishment; a sale or solicitation by telephone, mail, other telecommunications method, or other nonpersonal method does not satisfy the requirement of this subparagraph;
       2. is compensated solely by
          1. commissions on sales or other remuneration directly related to sales or sales performance; or
          2. a profit represented by the difference between the wholesale cost of the product to the seller and the final sale price to the consumer; and
       3. performs under a written contract with the person for whom the service is performed that provides, notwithstanding AS 23.20.395(a) , that the individual is not an employee for purposes of this chapter or for federal or state tax purposes;
   22. temporary services related to emergency oil spill training and response activities by an individual described in (17) of this subsection; in this paragraph, “temporary” means a period of less than seven continuous days; and
   23. volunteer work performed by a person engaged on a contract basis as a sports official at a sports event for which the competitors are not paid a wage or salary; however, the exemption provided under this paragraph does not apply to a claim for benefits under this chapter that is related to a sports event or competition sponsored by an employer for whom the person making the claim normally performs work, including work as a teacher, coach, or administrator, that is not sports official work; in this paragraph,
       1. “sports official” is a participant in a sports event or competition whose participation is neutral with respect to who wins or loses, including an umpire, referee, judge, scorekeeper, timekeeper, or organizer;
       2. “volunteer work” means work for which compensation does not exceed $1,500 a year and is paid only to defray or reimburse the reasonable food, travel, and incidental expenses the person incurs in order to perform the work or as a result of performing the work.
2. Notwithstanding any other provision of this section, the provisions of (a)(15)(D) and (E) of this section are not applicable to service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption.
3. In (a)(15) of this section, “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.
4. For the purposes of AS 23.20.525(a)(4) and (12), the term “employment” does not apply to service performed
   1. by a duly ordained, commissioned, or licensed minister of a church in the exercise of the person’s ministry or by a member of a religious order in the exercise of duties required by the order;
   2. in a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury or providing remunerative work for individuals who, because of their impaired physical or mental capacity, cannot be readily absorbed in the competitive labor market by an individual receiving the rehabilitation or remunerative work;
   3. as part of an unemployment work-relief or work-training program assisted or financed in whole or in part by a federally recognized tribe or any federal agency or any agency of a state or political subdivision of the state, by an individual receiving work relief or work training;
   4. for a state hospital by an inmate of a prison or correctional institution;
   5. in the employ of a school, college, or university if the service is performed by a student who is enrolled and is regularly attending classes at the school, college, or university;
   6. by an individual under the age of 22 who is enrolled at a nonprofit or public educational institution that normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at the institution, that combines academic instruction with work experience if the service is an integral part of the program and the institution has so certified to the employer, except that this paragraph does not apply to service performed in a program established for or on behalf of an employer or group of employers;
   7. in the employ of a hospital if the service is performed by a patient of the hospital, as defined in AS 23.20.520 ;
   8. in the employ of the state or a political subdivision of the state if the service is performed by an individual in the exercise of duties
      1. as a judicial officer, the governor, the lieutenant governor, a person hired or appointed as the head or deputy head of a department in the executive branch, a person hired or appointed as the director of a division of a department in the executive branch, an assistant to the governor, a chair or member of a state commission or board, state investment officers and the state comptroller in the Department of Revenue, an appointed or elected municipal officer, any other elected official, the fiscal analyst of the legislative finance division, the legislative auditor of the legislative audit division, the executive director of the Legislative Affairs Agency, and the directors of the divisions within the Legislative Affairs Agency;
      2. as a member of the Alaska Army National Guard or Alaska Air National Guard or Alaska Naval Militia;
      3. as an employee serving on only a temporary basis in case of fire, storm, snow, earthquake, flood, or similar emergency; or
      4. as an election official or election worker if the amount of remuneration received by the individual during the calendar year for services as an election official or election worker is less than $1,000;
   9. in the employ of
      1. a church or a convention or association of churches; or
      2. an organization that is operated primarily for religious purposes and that is operated, supervised, controlled, or principally supported by a church or a convention or association of churches;
   10. in the employ of a federally recognized tribe in this state if the service is performed by an individual in the exercise of duties as an officer of the federally recognized tribe and meets the requirements of 26 U.S.C. 3309(b)(3)(E) (Federal Unemployment Tax Act, Internal Revenue Code).

History. (§ 15 ch 106 SLA 1971; am § 1 ch 55 SLA 1976; am §§ 19 — 23, 25 ch 122 SLA 1977; am § 80 ch 9 SLA 1980; am § 3 ch 145 SLA 1980; am § 1 ch 91 SLA 1982; am § 30 ch 115 SLA 1982; am § 14 ch 106 SLA 1984; am § 26 ch 100 SLA 1989; am § 1 ch 165 SLA 1990; am § 36 ch 127 SLA 1992; am § 3 ch 13 SLA 1993; am § 1 ch 97 SLA 1995; am § 1 ch 4 SLA 1996; am § 13 ch 63 SLA 1998; am § 11 ch 74 SLA 1998; am § 2 ch 29 SLA 1999; am § 10 ch 130 SLA 2004; am § 1 ch 32 SLA 2008; am § 18 ch 27 SLA 2009; am §§ 39, 40 ch 41 SLA 2009; am § 1 ch 8 SLA 2010; am § 15 ch 58 SLA 2010)

Revisor’s notes. —

The addition of (a)(22) of this section as set out in § 1, ch. 53, SLA 1998 did not occur because the condition set out in § 3, ch. 53, SLA 1998, relating to amendment of federal law, did not occur.

The contingent amendment to this section made under sec. 33, ch. 122, SLA 1977 never took effect and was repealed by sec. 82, ch. 41, SLA 2009.

The paragraphs of subsection (a) were renumbered in 1990 to reflect the deletion of repealed paragraphs.

Paragraph (a)(20) enacted as (a)(21). Renumbered in 1993.

In 2005, in paragraph (a)(20), “AS 23.10.055 (a)(13)” was substituted for “AS 23.10.055 (13)” to reflect the addition of AS 23.10.055(b) and (c) by § 2, ch. 90, SLA 2005.

In 2009, to reconcile the amendments made by § 18, ch. 27, SLA 2009 and §§ 38 and 40, ch. 41, SLA 2009, in (d) of this section a reference to “ AS 23.20.525(a)(4) and (12)” was used instead of “ AS 23.20.525(a)(6) and (14)”.

Cross references. —

For legislative findings and intent in connection with the amendment of (d) of this section by sec. 18, ch. 27, SLA 2009 see § 1, ch. 27, SLA 2009, in the 2009 Temporary and Special Acts.

For explanation of the amendment made to (a)(2) of this section by § 15, ch. 58, SLA 2010, see 2010 Senate Journal Supplement No. 6, July 9, 2010.

Effect of amendments. —

The first 2009 amendment, effective May 26, 2009, in the introductory language of (d), substituted “AS 23.20.525(a)(6) and (14)” for “AS 23.20.525(a)(4) — (6) and (14)”; in (d)(3), added “a federally recognized tribe or”; added (d)(10).

The second 2009 amendment, effective June 21, 2009, in (a)(1), substituted “AS 23.20.525(a)(13) ” for “AS 23.20.525(a)(15)”; in (a)(2), substituted “service performed by an individual under 18 years of age” for “newsboys’ services”; in (a)(3), deleted “some” preceding “24 days during the quarter”; in (a)(8), substituted “securities salesperson” for “securities salesman”; in (a)(9), substituted “AS 23.20.525(a)(9) ” for “AS 23.20.525(a)(11) ”; in (a)(11), added “United States” preceding “Secretary of Labor”; in (a)(15), substituted “AS 23.20.525(a)(14) ” for “AS 23.20.525(a)(16)”; in the introductory language in (d), substituted “AS 23.20.525(a)(4) and (12)” for “AS 23.20.525(a)(4) — (6) and (14)”; made stylistic changes throughout the section.

The first 2010 amendment, effective July 29, 2010, added (a)(23).

The second 2010 amendment, effective retroactively to June 21, 2009, in (a)(2), substituted “newsboys’ services” for “service performed by an individual under 18 years of age”.

Editor’s notes. —

Section 30, ch. 58, SLA 2010, makes the 2010 amendment of (a)(2) of this section retroactive to June 21, 2009.

Collateral references. —

Taxicab driver as employee of owner of cab, or independent contractor, within social security and unemployment insurance statutes. 10 ALR2d 369.

Salesman on commission as within act. 29 ALR2d 751.

What constitutes “agricultural” or “farm” labor within social security or unemployment acts. 56 ALR2d 406.

Own projects or activities, right to unemployment compensation of one working on. 65 ALR2d 1182.

Insurance agents or salesmen as within coverage of social security or unemployment compensation acts. 39 ALR3d 872.

Part-time or intermittent workers as covered by or eligible for benefits under state unemployment compensation act. 95 ALR3d 891.

Sec. 23.20.530. Wages defined.

1. In this chapter, “wages” means all remuneration for service from whatever source, including insured work, noninsured work, or self-employment; commissions, bonuses, back pay, and the cash value of all remuneration in a medium other than cash shall be treated as wages; gratuities customarily received by an individual in the course of service from persons other than the individual’s employing unit may be treated as wages received from the employing unit only to the extent the individual reports the gratuities to the employing unit. The reasonable cash value of remuneration in a medium other than cash, and the reasonable amount of gratuities, shall be estimated and determined in accordance with regulations adopted by the department; notwithstanding AS 23.20.350(a) , back pay awards shall be allocated to the weeks or quarters with respect to which the pay was earned. If the remuneration of an individual is not based on a fixed period of time or if the individual’s wages are paid in irregular intervals or in a manner that does not extend regularly over the period of employment, the wages shall be allocated to weeks or quarters in accordance with regulations adopted by the department. The regulations must, so far as possible, produce results reasonably similar to those that would prevail if the individual’s wages were paid at regular intervals. When an employer has filed for bankruptcy, unpaid wages earned for services performed for the employer are considered wages for the quarter in which they were earned.
2. In this chapter, unless the context otherwise requires, “wages” does not include
   1. the amount of any payment, including an amount paid by an employing unit for insurance or annuities or into a fund to provide for the payment, to or on behalf of an individual or the individual’s dependent under a plan or system established by an employing unit that makes provisions generally for individuals performing service for it, or for such individuals generally and their dependents, or for a class or classes of the individuals and their dependents, on account of
      1. retirement;
      2. sickness or accident disability;
      3. medical or hospitalization expenses in connection with sickness or accident disability; or
      4. death;
   2. the amount of a payment made by an employing unit to an individual performing service for it, including an amount paid by an employing unit for insurance or annuities or into a fund to provide for the payment, on account of retirement;
   3. the amount of a payment on account of sickness or accident disability, or medical or hospitalization expenses in connection with sickness or accident disability, by an employing unit to or on behalf of an individual performing service for it after the expiration of six calendar months following the last calendar month in which the individual performed services for the employing unit;
   4. the amount of a payment made by an employing unit to or on behalf of an individual performing services for it or the individual’s beneficiary
      1. from or to a trust described in 26 U.S.C. 401(a) (Internal Revenue Code) that is exempt from taxation under 26 U.S.C. 501(a) at the time of the payment, unless the payment is made to an individual performing services for the trust as remuneration for those services and not as a beneficiary of the trust; or
      2. under or to an annuity plan that, at the time of the payment, meets the requirements of 26 U.S.C. 401(a)(3) — (6);
   5. the amount of a payment made by an employing unit (without deduction from the remuneration of the individual in its employ) of the tax imposed upon an individual in its employ under 26 U.S.C. 3101 (Internal Revenue Code) with respect to service performed;
   6. remuneration paid in a medium other than cash to an individual for service not in the course of the employing unit’s trade or business;
   7. the amount of a payment, other than vacation or sick pay, to an individual after the month in which the individual attains the age of 65, if the individual did not perform services for the employing unit in the period for which the payment is made;
   8. dismissal payments that the employing unit is not legally required to make;
   9. the amount of any payment, including any amount paid by an employer into a fund to provide for any such payment, made to or on behalf of an employee under a plan or system established by an employer that makes provision for the employer’s employees generally, or for a class or group of the employer’s employees, for the purpose of supplementing unemployment benefits;
   10. the amount of a payment made to or on behalf of an employee for subsistence while the employee is employed away from home, but this exemption applies only to that portion of a subsistence payment that does not exceed the actual expenses of the employee while so employed;
   11. compensation received for inactive service performed by a member of the Alaska National Guard or Naval Militia;
   12. the amount of a payment made to or on behalf of an employee or the employee’s beneficiary under a cafeteria plan as defined in 26 U.S.C. 125, if the payment would not be treated as wages under this section without regard to the cafeteria plan;
   13. the amount of payment made, or benefit furnished, by the employer under a plan to provide educational assistance to or for the benefit of an employee if, at the time of the payment or the furnishing, it is reasonable to believe that the employee will be able to exclude the payment or benefit from income under 26 U.S.C. 127(b).

History. (§§ 242 — 249 ch 5 ESLA 1955; § 249.1 ch 5 ESLA 1955, added by § 3 ch 60 SLA 1960; § 250 ch 5 ESLA 1955; am § 1 ch 88 SLA 1965; am § 24 ch 122 SLA 1977; am § 78 ch 9 SLA 1980; am §§ 31 — 33 ch 115 SLA 1982; am § 27 ch 100 SLA 1989; am § 23 ch 43 SLA 1996; am § 11 ch 130 SLA 2004; am § 41 ch 41 SLA 2009; am § 20 ch 3 SLA 2017)

Revisor’s notes. —

The paragraphs in subsection (b) were renumbered in 1990 to reflect the deletion of repealed paragraphs.

Administrative Code. —

For employment security, see 8 AAC 85.

Effect of amendments. —

The 2009 amendment, effective June 21, 2009, in (b)(3), deleted “made after December 31, 1954” following “sickness or accident disability”; in (b)(5), deleted “after January 1, 1941” following “respect to service performed”; in (b)(7), deleted “made after December 31, 1954,” following “vacation or sick pay,”; in (b)(8), substituted “that” for “after January 1, 1941, which”; made stylistic changes throughout the section.

The 2017 amendment, effective July 1, 2017, in (a), in the first sentence, deleted “, but not limited to,” following “from whatever source, including”; made a stylistic change.

Legislative history reports. —

For governor’s transmittal letter for ch. 130, SLA 2004 (HB 490), which recommends changes to ensure that this chapter complies with federal law requirements and adds paragraph (13) to (b) of this section, see 2004 House Journal 2613 — 2614.

Sec. 23.20.535. Short title.

This chapter may be cited as the Alaska Employment Security Act.

History. (§ 101 ch 5 ESLA 1955)

Sec. 23.25.010. Liability to employees for defects or insufficiency of machinery.

A person engaged in manufacturing, mining, constructing, building, or other business or occupation carried on by means of machinery or mechanical appliances is liable to an employee or, in the event of the employee’s death, to the employee’s personal representative for the benefit of the employee’s surviving spouse and children, if any, or if none, then for the employee’s parents, or, if neither surviving spouse, nor children nor parents, then for the employee’s next of kin dependent upon the employee, for all damages that may result from the negligence of any of the employer’s officers, agents, or employees, or by reason of defect or insufficiency due to the employer’s negligence in the machinery, appliances, and works.

History. (§ 43-2-51 ACLA 1949; am § 85 ch 127 SLA 1974)

Sec. 23.25.020. Contributory negligence not a defense.

In an action against a master or employer under AS 23.25.010 the fact that the employee may have been guilty of contributory negligence does not bar a recovery where the employee’s contributory negligence was slight and the negligence of the employer was gross in comparison, but the damages shall be diminished by the jury in proportion to the amount of negligence attributable to the employee. All questions of negligence and contributory negligence are for the jury.

History. (§ 43-2-52 ACLA 1949)

Sec. 23.25.030. Contract, insurance, or indemnity is not a defense.

1. No contract of employment, insurance, relief benefit, indemnity for injury or death entered into by or on behalf of an employee, nor the acceptance of insurance, relief benefit, or indemnity by the person entitled to it constitutes a bar or defense to an action brought to recover damages for personal injuries to or death of the employee.
2. Upon trial of the action the defendant may set off the sum contributed by the employer toward the insurance, relief benefit, or indemnity paid to the employee, or in case of the employee’s death to the employee’s personal representative.
3. Contributions for insurance, relief benefit, or indemnity exacted from or paid by the employee may not be allowed as set off.

History. (§ 43-2-53 ACLA 1949)

Sec. 23.25.040. Prerequisites to maintenance of action.

An action may not be maintained under this chapter unless

1. it is shown that there exist beneficiaries as provided in AS 23.25.010 ;
2. the action is brought within two years from the time the cause of action accrued.

History. (§ 43-2-54 ACLA 1949)

Sec. 23.30.001. Legislative intent.

It is the intent of the legislature that

1. this chapter be interpreted so as to ensure the quick, efficient, fair, and predictable delivery of indemnity and medical benefits to injured workers at a reasonable cost to the employers who are subject to the provisions of this chapter;
2. workers’ compensation cases shall be decided on their merits except where otherwise provided by statute;
3. this chapter may not be construed by the courts in favor of a party;
4. hearings in workers’ compensation cases shall be impartial and fair to all parties and that all parties shall be afforded due process and an opportunity to be heard and for their arguments and evidence to be fairly considered.

History. (§ 3 ch 10 FSSLA 2005)

Sec. 23.30.002. Division of workers’ compensation; director.

The division of workers’ compensation is established in the department. The commissioner shall appoint the director of the division of workers’ compensation.

History. (§ 17 ch 12 SLA 2006)

Sec. 23.30.005. Alaska Workers’ Compensation Board.

1. The Alaska Workers’ Compensation Board consists of a southern panel of three members sitting for the first judicial district, two northern panels of three members sitting for the second and fourth judicial districts, five southcentral panels of three members each sitting for the third judicial district, and one panel of three members that may sit in any judicial district. Each panel must include the commissioner of labor and workforce development or a hearing officer designated to represent the commissioner, a representative of industry, and a representative of labor. The latter two members of each panel shall be appointed by the governor and are subject to confirmation by a majority of the members of the legislature in joint session. The board shall by regulation provide procedures to avoid conflicts and the appearance of impropriety in hearings.
2. The commissioner shall act as chair and executive officer of the board and chair of each panel. The commissioner may designate a representative to act for the commissioner as chair and executive officer of the board. The commissioner may designate hearing officers to serve as chairs of panels for hearing claims.
3. The governor shall appoint the members of the panels. Each member, except the commissioner of labor and workforce development, serves a term of three years.  The term of a management member and the term of a labor member of each panel may not expire in the same year. The management and labor members are entitled to compensation in the amount of $50 a day for each day or portion of a day spent in actual meeting or on authorized official business incidental to their duties and to all other transportation and per diem as provided by law.
4. [Repealed, § 9 ch 77 SLA 1979.]
5. A member of one panel may serve on another panel when the commissioner considers it necessary for the prompt administration of this chapter.  Transfers shall be allowed only if a labor or management representative replaces a counterpart on the other panel.
6. Two members of a panel constitute a quorum for hearing claims and the action taken by a quorum of a panel is considered the action of the full board.
7. A claim may be heard by only one panel.
8. The department shall adopt rules for all panels, and procedures for the periodic selection, retention, and removal of both rehabilitation specialists and physicians under AS 23.30.041 and 23.30.095 , and shall adopt regulations to carry out the provisions of this chapter. The department may by regulation provide for procedural, discovery, or stipulated matters to be heard and decided by the commissioner or a hearing officer designated to represent the commissioner rather than a panel. If a procedural, discovery, or stipulated matter is heard and decided by the commissioner or a hearing officer designated to represent the commissioner, the action taken is considered the action of the full board on that aspect of the claim. Process and procedure under this chapter shall be as summary and simple as possible. The department, the board or a member of it may for the purposes of this chapter subpoena witnesses, administer or cause to be administered oaths, and may examine or cause to have examined the parts of the books and records of the parties to a proceeding that relate to questions in dispute. The superior court, on application of the department, the board or any members of it, shall enforce the attendance and testimony of witnesses and the production and examination of books, papers, and records.
9. The department may adopt regulations concerning the medical care provided for in this chapter.  In addition to the reports required of physicians under AS 23.30.095(a) — (d), the board may direct a physician or hospital rendering medical treatment or service under this chapter to furnish to the board periodic reports of treatment or services on forms procured from the board.
10. The board may also arrange to have hearings held by the commission, officer, or tribunal having authority to hear cases arising under the workers’ compensation law of any other state, of the District of Columbia, or of any territory of the United States.  The testimony and proceedings at the hearing shall be reported to the board and are a part of the record in the case.  Evidence taken at the hearing is subject to rebuttal upon final hearing before the board.
11. The board shall notify the contracting agency of the state or of a political subdivision of the state when it revokes the self-insurance certificate of an employer holding a contract with the state or a political subdivision of the state.
12. Regulations adopted by the department under (h) and (i) of this section become effective only after approval by a majority of the full board.
13. The board may by regulation delegate authority to the director to assist the board in administering and enforcing this chapter.

History. (§ 25 ch 193 SLA 1959; am § 1 ch 76 SLA 1965; am § 1 ch 100 SLA 1966; am § 2 ch 107 SLA 1969; am § 1 ch 198 SLA 1970; am § 1 ch 166 SLA 1972; am §§ 1, 2 ch 207 SLA 1976; am §§ 4 — 9 ch 77 SLA 1979; am § 1 ch 59 SLA 1981; am § 1 ch 2 SLA 1985; am § 4 ch 79 SLA 1988; am § 7 ch 43 SLA 1994; am § 1 ch 48 SLA 2002; am §§ 4 — 7 ch 10 FSSLA 2005; am § 21 ch 3 SLA 2017)

Revisor’s notes. —

In 1999, in this section, “commissioner of labor” was changed to “commissioner of labor and workforce development” in accordance with § 90, ch. 58, SLA 1999.

Cross references. —

For regulations governing workers’ compensation matters, see 8 AAC 45.

Administrative Code. —

For compensation, medical benefits, and proceedings before the Alaska Workers’ Compensation Board, see 8 AAC 45.

For self-insurance, see 8 AAC 46.

Effect of amendments. —

The 2017 amendment, effective July 1, 2017, in ( l ), substituted “only after approval” for “only after approved” following “become effective”.

Sec. 23.30.007. Workers’ Compensation Appeals Commission.

1. There is established in the Department of Labor and Workforce Development the Workers’ Compensation Appeals Commission. The commission has jurisdiction to hear appeals from final decisions and orders of the board under this chapter. Jurisdiction of the commission is limited to administrative appeals arising under this chapter.
2. The commission consists of five members appointed by the governor and confirmed by a majority of the members of the legislature in joint session. The members shall be appointed as follows:
   1. a member appointed as chair who meets the requirements of (c)(2) of this section;
   2. two members who meet the qualifications in (c)(1) of this section and, because of their employment or affiliations, may be classified as a representative of employees covered by this chapter;
   3. two members who meet the qualifications in (c)(1) of this section and, because of their employment or affiliations, may be classified as a representative of employers covered by this chapter.
3. To be eligible for appointment under this section,
   1. a member must
      1. be a citizen of the United States;
      2. be a resident of the state for the five years preceding the appointment;
      3. have not been convicted of either a
         1. felony; or
         2. misdemeanor related to workers’ compensation; and
      4. have served for a total of not less than 18 months as a member of the Alaska Workers’ Compensation Board;
   2. the chair must
      1. meet the criteria specified in (1) of this subsection, except for the requirement in (1)(D) of this subsection;
      2. be licensed to practice law in this state and be a member in good standing with the Alaska Bar Association; and
      3. have engaged in the active practice of law for at least five years with experience in workers’ compensation in this state.
4. An individual seeking appointment as a member or as chair shall submit an application to the chief administrative law judge appointed under AS 44.64.010 . The application must show that the applicant meets requirements in (c) of this section that are applicable to the position for which the application is submitted. For each vacant position, other than the chair, the chief administrative law judge shall select not less than two eligible individuals and submit the names of those individuals to the governor. For the chair, the chief administrative law judge shall select not less than three for submission to the governor.
5. The term of service on the commission is five years. A member may be reappointed so long as the reappointment complies with the provisions of this section, including the application and appointment process described in (d) of this section.
6. A vacancy arising in the commission shall be filled by appointment by the governor and confirmed by a majority of the members of the legislature in joint session. Except as provided in AS 39.05.080 (4), an appointee selected to fill a vacancy shall hold office for the unexpired term of the member whose vacancy is filled. A vacancy in the commission does not impair the authority of a quorum of members to exercise all the powers and perform all the duties of the commission.
7. A member may act and receive compensation under this section from the date of appointment until confirmation or rejection by the legislature.
8. The chair of the commission is in the exempt service under AS 39.25.110 and shall receive a monthly salary that is not less than Step A nor more than Step F of Range 27 of the salary schedule in AS 39.27.011(a) for Anchorage, Alaska.
9. An appeal to the commission shall be heard and decided by a three-member panel of the commission. An appeal panel shall consist of the chair of the commission and two members of the commission assigned by the chair, one member classified as representing employees, and one member classified as representing employers. At other meetings to conduct commission business, the number of commission members classified as representing employees must equal the number of commission members classified as representing employers. The chair of the commission and two representative members of the commission, one classified as representing employees and one classified as representing employers, constitute a quorum.
10. A member of the commission may be removed from office by the governor for good cause. To be removed for cause, a member of the commission shall be given a copy of the charges and afforded an opportunity to be heard in person or by counsel in the member’s own defense upon not less than 10 days’ notice. If the member is removed for cause, the governor shall file with the lieutenant governor a complete statement of all charges made against the member, the governor’s findings on the charges, and the record of any proceedings. In this subsection, “good cause” includes
    1. misconduct in office or violation of AS 39.52;
    2. conviction of a felony;
    3. conviction of a misdemeanor related to workers’ compensation;
    4. inability to serve, neglect of duty, incompetence, unjustified failure to handle the caseload assigned, or similar nonfeasance of office; and
    5. failure to continue to meet the requirements of this section relating to qualification for office.
11. Representative members are entitled to compensation in the amount of $400 a day for each day spent in actual hearing of appeals or on authorized official business incidental to their duties, and to transportation and per diem as provided by law. Compensation shall be paid pro rata for each portion of a day spent in actual hearing of appeals or on authorized official business.
12. A member of the commission may not hear an appeal under this chapter if
    1. a party is an employee or was, in the past seven years, an employee of the commission member or of a business that employs the commission member; this paragraph does not apply to the chair of the commission when the State of Alaska is or was the employer of a party;
    2. a party is a member or was, in the past seven years, a member of the same union or employee association as the commission member;
    3. a party has a contractual relationship with the commission member, a business that employs the commission member, or a union or employee association of which the commission member is a member;
    4. the commission member is unable to be fair, impartial, and unbiased toward the appeal participants; or
    5. participation in the appeal is a violation of AS 39.52.
13. If the chair of the commission is unable to hear an appeal for reasons of absence or illness in excess of 10 days, or for reasons set out in (l) of this section, the chief administrative law judge appointed under AS 44.64.010 shall appoint a person who meets the qualifications of this section to serve as chair to hear the appeal as chair pro tempore. The person shall receive the compensation provided in (k) of this section. Appointment of a chair pro tempore does not require legislative confirmation.
14. Each member of the commission, before entering upon the duties of office, shall take and subscribe to the oath prescribed for principal officers of the state. A member of the commission, during tenure, may not
    1. hold or campaign for elective office;
    2. be an officer of a political party, political committee, or group;
    3. permit the member’s name to be used, or make any contributions whatsoever, in support of or in opposition to a candidate or proposition or question that appears on any ballot in the state including that of a municipality; however, contributions may be made to a candidate for the office of President of the United States;
    4. participate in any way in an election campaign or participate in or contribute to any political party; or
    5. lobby, employ, or assist a lobbyist.
15. The offices of the commission shall be physically separate from the offices of the division.
16. Notwithstanding (e) of this section, the terms of the individuals initially appointed to the commission shall be as follows:
    1. the chair, five years;
    2. one member, four years;
    3. one member, three years;
    4. one member, two years;
    5. one member, one year.

History. (§ 8 ch 10 FSSLA 2005; am § 22 ch 3 SLA 2017)

Administrative Code. —

For appeals, see 8 AAC 57.

Effect of amendments. —

The 2017 amendment, effective July 1, 2017, in (n)(3), deleted “but not limited to” following “any ballot in the state including”.

Sec. 23.30.008. Powers and duties of the commission.

1. The commission shall be the exclusive and final authority for the hearing and determination of all questions of law and fact arising under this chapter in those matters that have been appealed to the commission, except for an appeal to the Alaska Supreme Court. The commission does not have jurisdiction in any case that does not arise under this chapter or in any criminal case. On any matter taken to the commission, the decision of the commission is final and conclusive, unless appealed to the Alaska Supreme Court, and shall stand in lieu of the order of the board from which the appeal was taken. Unless reversed by the Alaska Supreme Court, decisions of the commission have the force of legal precedent.
2. The commission, in its administrative capacity, shall maintain, index, and make available for public inspection the final administrative decisions and orders of the commission and of the board. The chair of the commission may review and circulate among the other members of the relevant commission appeal panel the drafts of the panel’s formal decisions and decisions upon reconsideration. The drafts are confidential documents and are not subject to disclosure.
3. The chair of the commission shall draft and propose, and the commission in its administrative capacity may adopt, regulations implementing the commission’s authority and duties under this chapter, including rules of procedure and evidence for proceedings before the commission under this chapter. The provisions of AS 44.62 (Administrative Procedure Act) apply to the adoption of regulations by the commission.
4. In an appeal, the commission shall award a successful party reasonable costs and, if the party is represented by an attorney, attorney fees that the commission determines to be fully compensatory and reasonable. However, the commission may not make an award of attorney fees against an injured worker unless the commission finds that the worker’s position on appeal was frivolous or unreasonable or the appeal was taken in bad faith.
5. The commission, in its administrative capacity, may adopt and alter an official seal and do all things necessary, convenient, or desirable to carry out the powers expressly granted or necessarily implied in this chapter.

History. (§ 8 ch 10 FSSLA 2005)

Administrative Code. —

For appeals, see 8 AAC 57.

Sec. 23.30.009. Powers and duties of the chair of the commission.

1. The chair of the commission shall exercise general supervision over the office of the commission and over appeals and shall direct the administrative functions of the commission. The chair of the commission shall serve as the executive officer of the commission and shall have authority in all administrative matters relating to the members. The chair may
   1. employ and supervise commission staff and appoint a commission clerk;
   2. establish and implement a time management system for the commission members and staff and manage the calendar of appeals;
   3. assign the work of the commission members and staff so that appeals are resolved as expeditiously and competently as possible;
   4. advise and cooperate with the board to develop appropriate procedures for maintenance and transfer of hearing files and the preservation and transfer of records on appeal; and
   5. prepare an annual budget of the commission.
2. The chair of the commission shall preside over hearings and arguments on appeals. The chair of the commission shall ensure that all functions of the commission are performed with due regard for the rights of all parties and consistent with the orderly and prompt resolution of appeals. The chair of the commission shall rule on questions of procedure and advise the representative members of the commission on matters of law.
3. The chair of the commission shall, not later than March 15 of each year, make available to the public and file with the lieutenant governor a report regarding the commission for the prior calendar year, including data regarding time periods between initial receipt and final decisions on appeals.
4. The chair of the commission shall devote full time to the duties of the chair of the commission and may not engage in any other employment or business. The chair of the commission may not hold any other office or position under the United States, this state, any municipality or political subdivision of this state, or any tribal government or corporation. The chair of the commission may not hold office or position in a partisan political organization or party.

History. (§ 8 ch 10 FSSLA 2005)

Administrative Code. —

For appeals, see 8 AAC 57.

Sec. 23.30.010. Coverage.

1. Except as provided in (b) of this section, compensation or benefits are payable under this chapter for disability or death or the need for medical treatment of an employee if the disability or death of the employee or the employee’s need for medical treatment arose out of and in the course of the employment. To establish a presumption under AS 23.30.120(a)(1) that the disability or death or the need for medical treatment arose out of and in the course of the employment, the employee must establish a causal link between the employment and the disability or death or the need for medical treatment. A presumption may be rebutted by a demonstration of substantial evidence that the death or disability or the need for medical treatment did not arise out of and in the course of the employment. When determining whether or not the death or disability or need for medical treatment arose out of and in the course of the employment, the board must evaluate the relative contribution of different causes of the disability or death or the need for medical treatment. Compensation or benefits under this chapter are payable for the disability or death or the need for medical treatment if, in relation to other causes, the employment is the substantial cause of the disability or death or need for medical treatment.
2. Compensation and benefits under this chapter are not payable for mental injury caused by mental stress, unless it is established that (1) the work stress was extraordinary and unusual in comparison to pressures and tensions experienced by individuals in a comparable work environment; and (2) the work stress was the predominant cause of the mental injury. The amount of work stress shall be measured by actual events. A mental injury is not considered to arise out of and in the course of employment if it results from a disciplinary action, work evaluation, job transfer, layoff, demotion, termination, or similar action taken in good faith by the employer.

History. (§ 33(1) ch 193 SLA 1959; am § 9 ch 10 FSSLA 2005)

Cross references. —

For employees subject to this chapter, see AS 23.30.230 — 23.30.244 .

Administrative Code. —

For compensation, medical benefits, and proceedings before the Alaska Workers’ Compensation Board, see 8 AAC 45.

Opinions of attorney general. —

An employee who is a resident of Alaska and is employed by an Alaska resident employer, but who is injured in the scope of his employment while on a temporary, emergency job in Canada, is entitled to compensation under the Alaska Workmen’s Compensation Act, and the Alaska Workmen’s Compensation Board has jurisdiction over the case. 1960 Alas. Op. Att'y Gen. No. 35.

A business firm of foreign nationals who are acting as consultants for an Alaska fish products company is covered by the Alaska Workmen’s Compensation Act. 1966 Alas. Op. Att'y Gen. No. 9.

As to employment status of state board and commission members with regard to coverage under the state’s Workmen’s Compensation Act, see 1969 Alas. Op. Att'y Gen. No. 2.