00                            HOUSE BILL NO. 384                                                                          
01 "An Act increasing the minimum wage; and providing for an effective date."                                              
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 23.10.065(a) is amended to read:                                                                   
04            (a)  Except as provided in (b) and (e) of this section and as otherwise provided                         
05       by law, for hours worked in a pay period, whether the work is measured by time,                                   
06       piece, commission, or otherwise, an employer shall pay to each employee wages at a                                
07       rate that is not less than $8.75 [$7.25] an hour until December 31, 2015 [2009], [AND                     
08       THEREAFTER] not less than $9.75 an hour on and after January 1, 2016, until                                   
09       December 31, 2017, and thereafter adjusted annually for inflation under (d) of                                
10       this section [50 CENTS AN HOUR MORE THAN THE FEDERAL MINIMUM                                                  
11       WAGE]. An employer may not apply tips or gratuities bestowed on employees as a                                    
12       credit toward payment of the minimum hourly wage required by this section. Tip                                    
13       credit as defined by the Fair Labor Standards Act of 1938, as amended, does not apply                             
14       to the minimum wage established by this section.                                                                  
15    * Sec. 2. AS 23.10.065 is amended by adding new subsections to read:                                               

01            (d)  Subject to (e) of this section, the commissioner of labor and workforce                                 
02       development shall calculate the adjustment for inflation under (a) of this section                                
03       annually, on or before September 30, for the following calendar year in an amount that                            
04       is equal to the percentage increase in the Consumer Price Index for all urban                                     
05       consumers for the Anchorage metropolitan area during the previous calendar year as                                
06       determined by the United States Department of Labor, Bureau of Labor Statistics. The                              
07       department shall round the adjusted minimum hourly wage up to the nearest cent.                                   
08            (e)  Notwithstanding (a) of this section, for a year in which the minimum wage                               
09       in the state adjusted for inflation under (d) of this section would be less than $1 above                         
10       the federal minimum wage, the minimum wage in the state is $1 more than the federal                               
11       minimum wage.                                                                                                     
12    * Sec. 3. This Act takes effect January 1, 2015.