An Act relating to the payment of wages and claims for the payment of wages

The Department of Labor and Workforce Development (DLWD) was established to serve the interests of the employee through fair business practice. SB 193 will address complaints from the public regarding unethical employers who illegally withhold final wages from employees.

SB 193 allows the DLWD to handle employee wage claims up to $20,000. That amount becomes the new jurisdictional level for the department to file wage actions in small claims court. In current statute AS 23.05.220(c), it is not feasible for private attorneys to take such cases on a contingency fee basis when the maximum cap is $7500.

SB 193 would provide a source of assistance for this category of employee. It would serve the state's best interest to keep these cases in small claims rather than District or Superior Court in order to expedite resolution and lower costs to all parties.

This measure would serve as a tool to assist employees in their effort to acquire representation for wages not paid by their previous employer. SB 193 is a sensible bill that will strengthen Alaskan labor relations.