00HOUSE BILL NO. 201                                                                                                    
01 "An Act relating to the computation of overtime; and providing for an effective                                         
02 date."                                                                                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  LEGISLATIVE FINDINGS.  The legislature finds that                                                    
05   (1)  some courts in the state have misinterpreted the intent of AS 23.10.060(b)                                       
06 as it read before the effective date of this Act in a manner that may result in employers being                         
07 obligated to pay excessive overtime compensation; in particular, these courts have interpreted                          
08 AS 23.10.060(b) so that hours worked in excess of eight hours in a day are counted in order                             
09 to determine whether overtime is due under the statute's provision requiring payment of                                 
10 overtime for hours worked in excess of 40 hours a week; the courts' interpretation has the                              
11 unintended result of requiring employers to pay overtime under the statute's provision                                  
12 requiring payment of overtime for hours worked in excess of 40 hours a week under                                       
13 circumstances in which the employee has not yet worked 40 hours at the employee's regular                               
14 rate of pay;                                                                                                            

01   (2)  AS 23.10.060(b) as it read before the effective date of this Act was not                                         
02 intended to require employers to pay at the overtime rate under the statute's provision                                 
03 requiring payment of overtime for hours worked in excess of 40 hours a week unless and until                            
04 employees had first worked 40 hours at the regular rate of pay; and                                                     
05   (3)  although the legislature believes that AS 23.10.060(b) should not have been                                      
06 interpreted by the courts in a manner inconsistent with this finding, the legislature further finds                     
07 that it is necessary to amend AS 23.10.060(b) in order to eliminate any doubt on this subject.                          
08    * Sec. 2.  AS 23.10.060(b) is repealed and reenacted to read:                                                      
09  (b)  If an employer finds it necessary to employ an employee in excess of eight                                       
10 hours a day, or in excess of 40 hours a week without regard to hours that are worked                                    
11 by an employee that are in excess of eight hours a day, compensation for the overtime                                   
12 at the rate of one and one-half times the regular rate of pay shall be paid.                                            
13    * Sec. 3.  RETROSPECTIVE EFFECT.  This Act is retroactive to May 4, 1959.                                          
14    * Sec. 4.  This Act takes effect immediately under AS 01.10.070(c).