2022-03-22                     House Journal                      Page 2201
HB 403                                                                                                                        
HOUSE BILL NO. 403 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act exempting certain ambulatory surgical center employees                                                             
     from overtime pay requirements; and providing for an effective                                                             
     date."                                                                                                                     
                                                                                                                                
was read the first time and referred to the Labor & Commerce                                                                    
Committee.                                                                                                                      
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Labor & Workforce Development                                                                                
                                                                                                                                
The Governor's transmittal letter dated March 21 follows:                                                                       
                                                                                                                                
"Dear Speaker Stutes:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to State of Alaska                                                              
overtime law and ambulatory surgical centers.                                                                                   

2022-03-22                     House Journal                      Page 2202
Alaska law requires overtime pay for eligible workers to begin after                                                            
eight working hours in a day or forty cumulative hours in a week.                                                               
Certain employers, such as hospitals, have an exemption from the                                                                
eight-hour requirement, allowing critical healthcare workers to be on                                                           
staff to meet the needs of patients.                                                                                            
                                                                                                                                
The use of ambulatory surgical centers has grown nationally as many                                                             
procedures do not require hospital admissions. However, these centers                                                           
are not treated the same as hospitals for purposes of overtime rules                                                            
which creates significant management challenges. The result has been                                                            
a noticeable migration of nurses and other critical health staff to                                                             
hospitals where a more flexible schedule allows the worker a greater                                                            
say in their work scheduling.                                                                                                   
                                                                                                                                
This bill would place ambulatory surgical centers on an equal footing                                                           
with hospitals in relation to overtime rules. Like hospitals, ambulatory                                                        
surgical centers would still be bound by the federal forty-hour weekly                                                          
overtime rule. This change is one step toward greater flexibility for                                                           
healthcare workers and stability for Alaska’s healthcare system.                                                                
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"