Legislature(1999 - 2000)
03/06/2000 09:04 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 193(L&C)
"An Act relating to the payment of wages and claims
for the payment of wages."
Senator Wilken made a motion to adopt the Committee
Substitute for SB 193, Version 1-LS1263\H.
Co-Chair Parnell objected for explanation purposes.
Senator Pearce explained that on page 1, line 10, the word
"penalties" was deleted and a new Section 3 (f) was added,
which reads: "In an action brought for unpaid overtime
under AS 23.10.060 that results in an award of liquidated
damages under AS 23.10.110, the provisions of (d) of this
section do not apply unless the action was brought by the
department under (e) of this section."
JAY SEYMOUR, Attorney, Perkins Coie, testified via
teleconference from Anchorage. He stated that "Version H"
as outlined was a first good step in bringing some
reasonableness to wage and hour law. He added that this
version takes out the harsh double penalties that can be
assessed under current law AS 23.05.40.
Co-Chair Torgerson hearing no objection ADOPTED SB 193,
Version 1-LS1263\H.
Amendment #1: This amendment inserts a new bill section to
read as follows:
Sec.3. AS 23.05.140(b) is amended to read:
(b) If the employment is terminated, [REGARDLESS
OF THE CAUSE OF TERMINATION,] all wages, salaries, or
other compensation for labor or services become due
immediately and shall be paid within the time required
by this subsection [THREE WORKING DAYS AFTER THE
TERMINATION] at the place where the employee is
usually paid or at a location agreed upon by the
employer and employee. If the employment is
terminated by the employer, regardless of the cause
for the termination, payment is due within three
working days after the termination. If the employment
is terminated by the employee, payment is due at the
next regular pay day that is at least three days after
the employer received notice of the employee's
termination of services.
Sec. 4. AS 23.05.140(d) is amended to read:
(f) If an employer violates (b) of this section
by failing to pay within the time required by that
subsection [THREE WORKING DAYS OF TERMINATION], the
employer may be required to pay the employee a penalty
in the amount of the employee's regular wage, salary,
or other compensation from the time of demand to the
time of payment, or for 90 working days, whichever is
the lesser amount."
Page 2, line 26:
Delete "within three working days of termination"
Insert "within the time required by (b) of this
section"
Senator Wilken made a motion to adopt Amendment #1. He
explained that it sets forth that if someone quits a job
voluntarily, the payroll is not due until the next
scheduled payroll run.
Senator Adams asked if under current law, an individual
would be paid within three working days of termination. He
wondered if this amendment would put an undue hardship on
individuals that might be relocating to the lower 48, or to
another area statewide.
Senator Wilken responded that he did not think so and added
that these funds would essentially be considered money in
the bank, regardless of whether someone terminated his or
her employment.
Senator Adams OBJECTED to Amendment #1. A roll call vote
was taken.
IN FAVOR: Senator Phillips, Senator Leman, Senator Wilken,
Senator P. Kelly, Senator Green, Co-Chair Parnell, Co-Chair
Torgerson.
OPPOSED: Senator Adams.
The MOTION PASSED: (7-1)
Chair Parnell made a motion to move the Finance version of
SB 193, Version 1-LS1263\H as amended from the Committee
with individual recommendations and attached zero fiscal
note from Labor and Workforce Development.
Co-Chair Torgerson hearing no objection passed SB 193 FROM
THE COMMITTEE.
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