SCS CSHB 459(JUD): "An Act relating to settlement and payment of claims for minimum wage and overtime compensation claims and to liquidated damages and attorney fees for minimum wage and overtime compensation claims; and amending Alaska Rule of Civil Procedure 82."
00SENATE CS FOR CS FOR HOUSE BILL NO. 459(JUD) 01 "An Act relating to settlement and payment of claims for minimum wage and 02 overtime compensation claims and to liquidated damages and attorney fees for 03 minimum wage and overtime compensation claims; and amending Alaska Rule of 04 Civil Procedure 82." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 23.10.110(a) is amended to read: 07 (a) An employer who violates a provision of AS 23.10.060 or 23.10.065 is 08 liable to an employee affected in the amount of unpaid minimum wages, or unpaid 09 overtime compensation, as the case may be, and, except as provided in (d) - (f) of 10 this section, in an additional equal amount as liquidated damages. 11 * Sec. 2. AS 23.10.110(c) is amended to read: 12 (c) The court in an action brought under this section shall, in addition to a 13 judgment awarded to the prevailing party [PLAINTIFF], allow costs of the action and 14 reasonable attorney fees to be paid by either party. The court shall award full
01 reasonable attorney fees to the prevailing party. When the commissioner is the 02 prevailing party in an action brought under this section, the commissioner shall 03 remit the recovered attorney fees [PAID BY THE DEFENDANT. THE 04 ATTORNEY FEES IN THE CASE OF ACTIONS BROUGHT UNDER THIS 05 SECTION BY THE COMMISSIONER SHALL BE REMITTED BY THE 06 COMMISSIONER] to the Department of Revenue. The commissioner may not be 07 required to pay the filing fee or other costs. The commissioner in case of suit has 08 power to join various claimants against the same employer in one cause of action. 09 * Sec. 3. AS 23.10.110 is amended by adding new subsections to read: 10 (d) In an action under (a) of this section to recover unpaid minimum wages, 11 unpaid overtime compensation, or liquidated damages, if the employer shows to the 12 satisfaction of the court that the act or omission giving rise to the action was made in 13 good faith and that the employer had reasonable grounds for believing that the act or 14 omission was not in violation of AS 23.10.050 - 23.10.150, the court may decline to 15 award liquidated damages or may award an amount of liquidated damages less than 16 the amount set out in (a) of this section. The court shall, in a manner consistent with 17 applicable federal and state law, determine whether good faith has been established. 18 Ignorance of the law does not constitute good faith under this section. This subsection 19 does not apply to an action brought under this section by the commissioner. 20 (e) The commissioner may supervise the payment of the unpaid minimum 21 wages or unpaid overtime compensation owing to an employee under AS 23.10.060 22 or 23.10.065. Payment in full in accordance with an agreement by an employee to 23 settle a claim for unpaid minimum wages, unpaid overtime compensation, or liquidated 24 damages constitutes a waiver of any right the employee may have under (a) of this 25 section to unpaid minimum wages, unpaid overtime compensation, or liquidated 26 damages. 27 (f) In a settlement that is not supervised by the department or the court, an 28 employee is entitled to liquidated damages under (a) of this section unless the 29 employee and the employer enter into a written settlement agreement in which the 30 employee expressly waives the right to receive liquidated damages. The waiver must 31 be knowing and voluntary. A waiver may not be considered to be knowing and
01 voluntary unless the settlement agreement 02 (1) is written in a manner calculated to be understood by the employee; 03 (2) specifically waives rights or claims arising under AS 23.10.110(a); 04 (3) advises the employee to consult with an attorney or with the 05 department before entering into the agreement; 06 (4) allows the employee at least seven calendar days to consider 07 whether to accept the offer of settlement; and 08 (5) provides for a period of at least five days after the employee enters 09 into the agreement in which the employee may revoke the agreement; the settlement 10 agreement may not become effective or enforceable until the revocation period has 11 expired. 12 * Sec. 4. APPLICATION OF ACT. (a) AS 23.10.110(e), added by sec. 3 of this Act, 13 applies to agreements entered into on or after the effective date of this Act. 14 (b) AS 23.10.110(f), added by sec. 3 of this Act, applies to written agreements entered 15 into on or after the effective date of this Act. 16 (c) Except as provided in (a) and (b) of this section, to the extent constitutionally 17 permitted, this Act applies to actions commenced on or after the effective date of this Act. 18 * Sec. 5. The provisions of sec. 2 of this Act have the effect of changing Alaska Rule of 19 Civil Procedure 82 by requiring the court to award full reasonable attorney fees to the 20 prevailing party in actions brought under AS 23.10.110.