00                             HOUSE BILL NO. 125                                                                          
01 "An Act increasing the minimum hourly wage and creating an annual adjustment to the                                     
02 minimum hourly wage based on the rate of inflation; and providing for an effective                                      
03 date."                                                                                                                  
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 23.10.065(a) is amended to read:                                                                   
06            (a)  Except as provided under (b) of this section and as otherwise provided for                              
07       in law, for work performed on or after January 1, 2010 [2003], an employer shall pay                          
08       to each employee wages at a rate of not less than the wage established in this                                
09       subsection [$7.15 AN HOUR] for hours worked in a pay period, whether the work is                              
10       measured by time, piece, commission, or otherwise. An employer may not apply tips                                 
11       or gratuities bestowed upon employees as a credit toward payment of the minimum                                   
12       hourly wage required by this section. Tip credit as defined by the Fair Labor Standards                           
13       Act of 1938 as amended does not apply to the minimum wage established by this                                     
14       section. The minimum hourly wage under this subsection is $7.85 an hour for                                   
01       work performed on or after January 1, 2010; however, for work performed in                                    
02       years after December 31, 2010, the minimum hourly wage under this subsection                                  
03       is the greater of                                                                                             
04                 (1)  $1 more an hour than the federal minimum wage; or                                              
05                 (2)  $8.60 an hour for work performed on or after January 1, 2011,                                  
06       and $9.45 an hour for work performed on or after January 1, 2012; thereafter,                                 
07       the department shall, by regulation, not later than September 30 of each calendar                             
08       year, adjust the minimum hourly wage established in this paragraph for inflation                              
09       effective for the following calendar year; the adjusted minimum hourly wage                                   
10       shall be the most recent wage under this paragraph adjusted for 100 percent of                                
11       the rate of inflation based on the Consumer Price Index for all urban consumers                               
12       for the Anchorage metropolitan area, compiled by the Bureau of Labor Statistics,                              
13       United States Department of Labor; the department shall round the adjusted                                    
14       minimum hourly wage up to the nearest one cent; the adjusted minimum hourly                                   
15       wage shall apply to work performed beginning on January 1 through                                             
16       December 31 of the year for which it is effective, and the first adjustment takes                             
17       effect January 1, 2013.                                                                                       
18    * Sec. 2. This Act takes effect January 1, 2010.