00                             SENATE BILL NO. 1                                                                          
01 "An Act increasing the minimum hourly wage, and creating an annual adjustment to                                        
02 the 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 the greater of                                      

01                 (1)  $1 more an hour than the federal minimum wage; or                                              
02                 (2)  $8.75 an hour, as adjusted under this paragraph; the                                           
03       department shall, by regulation, not later than September 30 of each calendar                                 
04       year, adjust the minimum hourly wage established in this paragraph for inflation                              
05       effective for the following calendar year; the adjusted minimum hourly wage                                   
06       shall be the most recent wage under this paragraph adjusted for 100 percent of                                
07       the rate of inflation based on the Consumer Price Index for all urban consumers                               
08       for the Anchorage metropolitan area, compiled by the Bureau of Labor Statistics,                              
09       United States Department of Labor; the department shall round the adjusted                                    
10       minimum hourly wage up to the nearest one cent; the adjusted minimum hourly                                   
11       wage shall apply to work performed beginning on January 1 through                                             
12       December 31 of the year for which it is effective.                                                            
13    * Sec. 2. This Act takes effect January 1, 2010.