Alaska Workers Compensation Insurance-Workmans compensation

Alaska Workers Compensation

Alaska Workers Compensation Insurance

1. Who needs Alaska Workmans' Compensation Insurance coverage?

The Alaska Workers' Compensation Act requires each employer having one or more employees in Alaska to obtain workers' compensation insurance, unless the employer has been approved as a self insurer.

Generally speaking, an employer who is covered by Alaska Workman's Compensation Insurance is not subject to civil liability or suit by the injured worker. This is one of the main reasons for an employer to carry Workers' Compensation Insurance. Workers' Compensation Insurance is a system which pays benefits to the injured worker by the employer regardless of fault or negligence. Even if the injury was the employee's fault, the employer must pay. Likewise, if the employer caused the accident, the employee can generally not sue the employer.

There are some exceptions to when an injured worker can receive the Alaska Workers' Compensation Insurance and also sue the employer for civil damages. These situations may include such things as an employer being guilty of violating federal and state anti-discriminatory statute, violation of sexual harassment laws, a deliberate and willful intent on the part of the employer to injure the worker, and threats to discharge or actual termination for the filing of a valid Workers' Compensation claim.

In addition, if an employer does not have the Alaska Workers' Compensation Insurance coverage or is not qualified as a self-insured, the injured worker may sue the employer. There are also other circumstances where the employer might be held civilly liable such as when he engages in fraudulent activity.

2. Do you have any special laws for the construction industry?

The Twenty-Third Legislature for the State of Alaska, First Session, convened from January 21, 2003 until May 21, 2003. Out of that session came six laws that may affect the construction industry in Alaska. The changes in the law include smaller items such as licensing fees to larger items, like the State procurement code.

Effective June 12, 2003, the legislature authorized the Alaska Railroad Corporation to provide financing for the acquisition, construction, improvement, maintenance, equipping and operation for a natural gas pipeline and related facilities for the transportation of natural gas from the North Slope. This authorization was capped at seventeen million dollars.

Effective July 18, 2003, legislation was passed that affected real property title and possession. First, even under the color of title, meaning the adverse possessor believes he or she has legal title, the adverse possessor must have at least ten years on the property to claim ownership rights, instead of the previous seven.

In 2003, the Alaska Supreme Court produced several opinions that may affect the construction industry in Alaska. These opinions addressed the factors for a contractor to be able to bring a court action, what did not constitute economic duress for purposes of signing construction releases, what the Municipality of Anchorage could do without it being considered a taking,

3. Who can exempt themselves from Alaska Workman’s Compensation Insurance?

In Alaska, Workers' Compensation Insurance is compulsory, but some waivers are permitted. There is no state fund. Employers may insure through private carriers or self-insurance, but not through groups of employers. There is no exemption for employers with small numbers of employees.

4. What do you consider a Sub-Contractor or Independent Contractor vs an employee ?

“Contractor" means a person who undertakes by contract performance of certain work for another but does not include a vendor whose primary business is the sale or leasing of tools, equipment, other goods, or property

"Subcontractor" means a person to whom a contractor sublets all or part of the initial undertaking.

5. Can a sole proprietor or individual exempt themselves from Workers Compensation Insurance?

Sole Proprietors and partners are not required to cover themselves, but can elect to be covered. Corporate officers are covered but may elect to be exempted from coverage (and thus premium).

There are few exceptions to those who do not need to be covered under a Workman’s Compensation Insurance policy. Generally speaking, those include: sole proprietors in a sole proprietorship; general partners in a partnership; executive officers in a nonprofit corporation, members in a member managed limited liability company, part-time baby-sitters, cleaning persons (non-commercial), harvest help and similar part-time/transient help, sports officials for amateur events, contract entertainers, commercial fishers, taxicab drivers whose compensation is by contractual arrangement, a participant in the Alaska temporary assistance program, and professional hockey team players and coaches if those persons are covered under a health care insurance plan. In addition, executive officers in a for-profit corporation may exempt themselves by filing an Executive Officer Waiver with the department.

What is employee leasing or PEO?

A PEO is a Professional Employer Organization, also referred to as an employee leasing company. The PEO concept is simple - by allowing the PEO to establish a co-employment relationship with your Workers, employer responsibilities can be shared between you and the PEO. You focus on growing your business and most importantly, increasing revenue. The PEO, on the other hand, takes care of the non-revenue producing areas of your business, including:

Payroll administration Working with a PEO allows employers to more easily administer a number of payroll functions, including processing via the Internet, phone and fax. PEOs also facilitate the filing of state and federal government taxes and accounting.

Risk Management. Perhaps the most valuable yet underutilized asset in the client business is the risk management coverage provided by PEOs in the areas of workers’ compensation and unemployment. Without such coverage, many companies are at risk for heavily reduced profits and even bankruptcy. By working with a PEO, however, companies are able to share the costs and liabilities incurred against the employer.

Click here for the complete USL&H Act , courtesy of Cornell University.
Click here for: USL&H Web Site - Dept of labor

The Jones Act is a federal act, which provides employee benefits - similar to Workers' Compensation - to masters and members of a US-flagged vessel. (A "flagged vessel" can be a pontoon boat taking a crew to a job site, a small 17' center console used to push a barge for seawall construction or an ocean liner). State Act Workers' Compensation plans DO NOT cover vessel crew and employees can bring action against their employer for negligence.

Read the complete text of the Jones Act here.

If there may be USL&H or Jones Act exposures on your job, you or your insurance agent should contact us to find out how these exposures can impact your business, insurance coverage and profitability.

Alaska Workers Compensation

Helpful links to Alaska Workers Compensation Information

State of Alaska Division of Workers Compensation

Wokrers Compensation forms for Alaska

Alaska Workers Compensation Offices

What is the Alaska Fisherman Fund