00CS FOR HOUSE BILL NO. 201(FIN) am S                                                                                   
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)  the intent of this bill is to override the superior court's decision in Hallam                                   
02 v. Holland America Line, Inc., d/b/a Westours Motor Coaches, Inc., 1JU-96-1734 CI,                                      
03 concerning the calculation of overtime wages; the court in that case misinterpreted the intent                          
04 of AS 23.10.060(b);                                                                                                     
05   (3)  AS 23.10.060(b) as it read before the effective date of this Act was not                                         
06 intended to require employers to pay at the overtime rate under the statute's provision                                 
07 requiring payment of overtime for hours worked in excess of 40 hours a week unless and until                            
08 employees had first worked 40 hours at the regular rate of pay; and                                                     
09   (4)  although the legislature believes that AS 23.10.060(b) should not have been                                      
10 interpreted by the courts in a manner inconsistent with the finding in (3) of this section, the                         
11 legislature further finds that it is necessary to amend AS 23.10.060(b) in order to eliminate                           
12 any doubt on this subject.                                                                                              
13    * Sec. 2.  AS 23.10.060(b) is repealed and reenacted to read:                                                      
14  (b)  If an employer finds it necessary to employ an employee for hours in                                             
15 excess of the limits set in this subsection, overtime compensation for the overtime at                                  
16 the rate of one and one-half times the regular rate of pay shall be paid. An employee                                   
17 is entitled to overtime compensation for hours worked in excess of eight hours a day.                                   
18 An employee is also entitled to overtime compensation for hours worked in excess of                                     
19 40 hours a week; in determining whether an employee has worked more than 40 hours                                       
20 a week, the number of hours worked shall be determined without including hours that                                     
21 are worked in excess of eight hours in a day because the employee has or will be                                        
22 separately awarded overtime compensation based on those hours.                                                          
23    * Sec. 3.  This Act takes effect immediately under AS 01.10.070(c).