Alaska Statutes
Alaska Stat. § 23.40.210 (2026)
Agreement; cost-of-living differential
✓ current as of July 2026
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Sec. 23.40.210. Agreement; cost-of-living differential.
(a) Upon the completion of negotiations between an organization and a public employer, if a settlement is reached, the employer shall reduce it to writing in the form of an agreement. The agreement may include a term for which it will remain in effect, not to exceed three years. The agreement shall include a pay plan designed to provide for a cost-of-living differential between the salaries paid employees residing in the state and employees residing outside the state. The plan shall provide that the salaries paid, as of August 26, 1977, to employees residing outside the state shall remain unchanged until the difference between those salaries and the salaries paid employees residing in the state reflects the difference between the cost of living in Alaska and living in Seattle, Washington. The agreement shall include a grievance procedure which shall have binding arbitration as its final step. Either party to the agreement has a right of action to enforce the agreement by petition to the labor relations agency.
(b) An employee is eligible for the cost-of-living differential under (a) of this section only if the individual is a state resident. The required presence of an employee at a work station where room and board are provided or reimbursed by the employer may not be considered to be physical presence in the state or physical absence from the state for purposes of determining eligibility for the cost-of-living differential.
(c) The commissioner of administration may adopt regulations under AS 44.62 (Administrative Procedure Act) to clarify and implement the criteria for establishing and maintaining eligibility for the cost-of-living differential.
(d) An agreement entered into under AS 23.40.070 — 23.40.260 must require compliance with the eligibility criteria for receiving the cost-of-living differential contained in this section and the regulations adopted by the commissioner under (c) of this section.
(e) In this section, “state resident” means an individual who is physically present in the state with the intent to remain permanently in the state under the requirements of AS 01.10.055 or, if the individual is not physically present in the state, intends to return to the state and remain permanently in the state under the requirements of AS 01.10.055 and is absent only temporarily for reasons allowed under AS 43.23.008 or a successor statute.
(a) Upon the completion of negotiations between an organization and a public employer, if a settlement is reached, the employer shall reduce it to writing in the form of an agreement. The agreement may include a term for which it will remain in effect, not to exceed three years. The agreement shall include a pay plan designed to provide for a cost-of-living differential between the salaries paid employees residing in the state and employees residing outside the state. The plan shall provide that the salaries paid, as of August 26, 1977, to employees residing outside the state shall remain unchanged until the difference between those salaries and the salaries paid employees residing in the state reflects the difference between the cost of living in Alaska and living in Seattle, Washington. The agreement shall include a grievance procedure which shall have binding arbitration as its final step. Either party to the agreement has a right of action to enforce the agreement by petition to the labor relations agency.
(b) An employee is eligible for the cost-of-living differential under (a) of this section only if the individual is a state resident. The required presence of an employee at a work station where room and board are provided or reimbursed by the employer may not be considered to be physical presence in the state or physical absence from the state for purposes of determining eligibility for the cost-of-living differential.
(c) The commissioner of administration may adopt regulations under AS 44.62 (Administrative Procedure Act) to clarify and implement the criteria for establishing and maintaining eligibility for the cost-of-living differential.
(d) An agreement entered into under AS 23.40.070 — 23.40.260 must require compliance with the eligibility criteria for receiving the cost-of-living differential contained in this section and the regulations adopted by the commissioner under (c) of this section.
(e) In this section, “state resident” means an individual who is physically present in the state with the intent to remain permanently in the state under the requirements of AS 01.10.055 or, if the individual is not physically present in the state, intends to return to the state and remain permanently in the state under the requirements of AS 01.10.055 and is absent only temporarily for reasons allowed under AS 43.23.008 or a successor statute.
Notes of Decisions
Cited in 20
cases (1 in the last 5 years), 1978–2024 · leading case: State v. Pub. Saf. Employees Ass'n, 93 P.3d 409 (Alaska 2004).
State v. Pub. Saf. Employees Ass'n, 93 P.3d 409 (Alaska 2004). “10 We agreed: We conclude that the objective of AS 23.40.210 is to ensure that all contracts subject to the statute contain such a procedure, and that binding arbitration be included as the final step of all grievance procedures.”
Fairbanks Fire Fighters Ass'n, Local 1324 v. City of Fairbanks, 48 P.3d 1165 (Alaska 2002). “Because we conclude that AS 23.40.210 reserves the power to determine arbitrability to the Alaska Labor Relations Agency, we reverse the contrary ruling of the superior court and affirm the agency's ruling that it had the power to decide whether the underlying dispute was…”
Int'l Org. of Masters, Mates & Pilots, Pac. Mar. Region v. Andrews, 626 F. Supp. 1271 (D. Alaska 1986). “In 1977, the Alaska Legislature amended the Alaska Public Employment Relations Act, AS 23.40.210 (1985), and provided for cost-of-living wage differentials between AMHS’s Alaska-resident and nonresident employees.”
Hafling v. Inlandboatmen's Union of the Pac., 585 P.2d 870 (Alaska 1978). “However, in 1977, the legislature amended one PERA provision, AS 23.40.210, to require employers to include in their formal agreements a pay plan for cost-of-living differentials between employees residing within the state and those residing outside the state.”
Heller v. State, Dep't of Revenue, 314 P.3d 69 (Alaska 2013). “44, § 1, SLA 1998 codified at AS 23.40.210(e) (emphasis added). 40 See AS 01.”
Hammond v. State, Dep't of Transp. & Pub. Facilities, 107 P.3d 871 (Alaska 2005). “[5] AS 23.40.210(a). [6] 46 P.3d 974 (Alaska 2002).”
Hemmen v. State, Dep't of Pub. Saf., 710 P.2d 1001 (Alaska 1985). “3 Hemmen argues, among other things, that this exception violates AS 23.40.210. That section provides in part that “[t]he agreement shall include a grievance procedure which shall have binding arbitration as its final step.”
State v. Pub. Saf. Employees Ass'n, 323 P.3d 670 (Alaska 2014). “4 See AS 23.40.210(a) (“The agreement shall include a grievance procedure which shall have binding arbitration as its final step.”
Pub. Saf. Employees Ass'n v. State, 799 P.2d 315 (Alaska 1990). “DOES AS 23.40.210 REQUIRE EXHAUSTION OF CONTRACTUAL GRIEVANCE OR ARBITRATION PROCEDURES PREREQUISITE TO AGENCY JURISDICTION OVER AN UNFAIR LABOR PRACTICE CLAIM? The Agency gives “great weight” to federal decisions in the area of labor relations.”
Alaska State Employees Ass'n/AFSCME Local 52 v. State, 74 P.3d 881 (Alaska 2003). “210(a) states in relevant part: Upon the completion of negotiations between an organization and a public employer, if a settlement is reached, the employer shall reduce it to writing in the form of an agreement.”
Barnica v. Kenai Peninsula Borough Sch. Dist., 46 P.3d 974 (Alaska 2002). “The district argues that the state Public Employment Relations Act, AS 23.40.210(a), applies instead, and that the Public Employment Relations Act mandates that collective bargaining agreements contain grievance procedures with binding arbitration.”
Classified Employees Ass'n v. Matanuska-Susitna Borough Sch. Dist., 204 P.3d 347 (Alaska 2009). “" [18] AS 23.40.210(a) provides in part: "Upon the completion of negotiations between an organization and a public employer, if a settlement is reached, the employer shall reduce it to writing in the form of an agreement.”
— Alaska Stat. § 23.40.210(a) — 12 cases
State v. Pub. Saf. Employees Ass'n, 93 P.3d 409 (Alaska 2004). “10 We agreed: We conclude that the objective of AS 23.40.210 is to ensure that all contracts subject to the statute contain such a procedure, and that binding arbitration be included as the final step of all grievance procedures.”
Hammond v. State, Dep't of Transp. & Pub. Facilities, 107 P.3d 871 (Alaska 2005). “[5] AS 23.40.210(a). [6] 46 P.3d 974 (Alaska 2002).”
Fairbanks Fire Fighters Ass'n, Local 1324 v. City of Fairbanks, 48 P.3d 1165 (Alaska 2002). “Because we conclude that AS 23.40.210 reserves the power to determine arbitrability to the Alaska Labor Relations Agency, we reverse the contrary ruling of the superior court and affirm the agency's ruling that it had the power to decide whether the underlying dispute was…”
State v. Pub. Saf. Employees Ass'n, 323 P.3d 670 (Alaska 2014). “4 See AS 23.40.210(a) (“The agreement shall include a grievance procedure which shall have binding arbitration as its final step.”
Barnica v. Kenai Peninsula Borough Sch. Dist., 46 P.3d 974 (Alaska 2002). “The district argues that the state Public Employment Relations Act, AS 23.40.210(a), applies instead, and that the Public Employment Relations Act mandates that collective bargaining agreements contain grievance procedures with binding arbitration.”
— Alaska Stat. § 23.40.210(e) — 1 case
Heller v. State, Dep't of Revenue, 314 P.3d 69 (Alaska 2013). “44, § 1, SLA 1998 codified at AS 23.40.210(e) (emphasis added). 40 See AS 01.”
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