01/29/2024 01:00 PM House JUDICIARY

                  HB  88-WAREHOUSE WORK QUOTAS                                                                              
                                                                                                                                
1:39:53 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE  announced that the  next order of business  would be                                                               
HOUSE BILL NO. 88, "An Act  relating to work quotas for employees                                                               
at  warehouse   distribution  centers;   and  providing   for  an                                                               
effective date."  [Before the committee was CSHB 88(L&C).]                                                                      
                                                                                                                                
1:40:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   RAUSCHER,   Alaska  State   Legislature,   prime                                                               
sponsor,  presented   CSHB  88(L&C).    He   shared  the  sponsor                                                               
statement  [included  in the  committee  packet],  which read  as                                                               
follows:                                                                                                                        
                                                                                                                                
     House  Bill  88  Warehouse  Worker  Protection  Act  is                                                                    
     designed  to  provide  transparency for  warehouse  and                                                                    
     logistic workers when  they agree to a  pay scale based                                                                    
     on a quota  or production goal. HB 88  is also designed                                                                    
     to    provide   protections    for   workers    against                                                                    
     counterproductive methods  employers miss the  mark on,                                                                    
     to speed up production and save on costs.                                                                                  
                                                                                                                                
     Alaska  is one  of  the most  bountiful  states in  the                                                                    
     country with  its salmon runs,  wild game,  and natural                                                                    
     resources.  The abundance  of the  state is  a blessing                                                                    
     but there is still a need  for supplies and goods to be                                                                    
     imported,  stored,  and   delivered.  The  workers  who                                                                    
     manage the  logistics of these  imports are  the unsung                                                                    
     heroes of Alaskan food security  and supply chain. With                                                                    
     over  90% of  food  coming from  outside Alaska,  these                                                                    
     workers   are   the   lifeline  to   keep   the   state                                                                    
     operational. Warehouse  and logistic workers  face many                                                                    
     challenges in  the workplace, HB 88  will allow workers                                                                    
     to focus on delivering  goods and maintaining a healthy                                                                    
     supply chain while also ensuring  they are able to work                                                                    
     in a  safe environment where employers  don't encourage                                                                    
     speed over safety.                                                                                                         
                                                                                                                                
1:42:11 PM                                                                                                                    
                                                                                                                                
RYAN MCKEE,  Staff, Representative George Rauscher,  Alaska State                                                               
Legislature,   on  behalf   of  Representative   Rauscher,  prime                                                               
sponsor,  presented  the  sectional  analysis  for  CSHB  88(L&C)                                                               
[included  in  the  committee  packet],  which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Sec 1.  Amends AS 23.10 by adding new sections                                                                             
                                                                                                                                
     Article  9.  Work   Quotas  at  Warehouse  Distribution                                                                    
     centers.                                                                                                                   
                                                                                                                                
          Section 23.10.700. - Specifies what types of                                                                          
          employers the newly added                                                                                             
                                                                                                                                
          sections   AS    23.10.700-23.10.725   apply   to.                                                                    
          Specifically, 100  or more  employees at  a single                                                                    
          warehouse  distribution center,  or 1,000  or more                                                                    
          employees  at one  or more  warehouse distribution                                                                    
          centers in the state.                                                                                                 
                                                                                                                                
          Section  23.10.705. -  Specifies when  an employer                                                                    
          that is subject to  AS 23.10.700   23.10.725 needs                                                                    
          to  provide a  written description  of each  quota                                                                    
          that   applies  to   the   employee.  It   further                                                                    
          describes  what  needs  to  be  included  in  that                                                                    
          written quota description.                                                                                            
                                                                                                                                
          Section 23.10.710.    States what  specifically an                                                                    
          employer is  not allowed to  require in  order for                                                                    
          employees to meet quota expectations.                                                                                 
                                                                                                                                
          Section  23.10.715.    States  that  a current  or                                                                    
          former employee may request,  orally or in writing                                                                    
          a request  for a quota description.  And specifies                                                                    
          what needs to  be included in the  request as well                                                                    
          as a  timeline for  when an employee  will receive                                                                    
          the requested description.                                                                                            
                                                                                                                                
          Section 23.10.720.    States that an  employee may                                                                    
          seek  an  injunction  in  the  superior  court  to                                                                    
          enjoying  an  employer   violating  AS  23.10.700-                                                                    
          23.10.715.                                                                                                            
                                                                                                                                
          Section  23.10.725.     Provides  definitions  for                                                                    
     terms listed in the above language.                                                                                        
                                                                                                                                
     Sec 2.  Sets an effective date of January 1st, 2025.                                                                       
                                                                                                                                
CHAIR VANCE opened invited testimony.                                                                                           
                                                                                                                                
1:44:23 PM                                                                                                                    
                                                                                                                                
PATRICK  FITZGERALD,  Political   Coordinator,  Alaska  Teamsters                                                               
Union,  gave  invited  testimony   during  the  hearing  on  CSHB
(L&C).    He  stated  that   the  bill  would  add  to  statute                                                               
protections for warehouse and logistic  workers to curb predatory                                                               
practices  that  come with  a  quota-based  warehouse job.    The                                                               
legislation  would allow  these  employees to  access their  work                                                               
speed  data, and  to advocate  for themselves  when the  quota is                                                               
changed.  He argued that access  to the data would allow for more                                                               
efficient  production  and  would  bring  solutions  to  problems                                                               
regarding  retention  and   turnover;  transparency;  and  better                                                               
understanding  of operations.   He  urged legislators  to protect                                                               
warehouse workers by passing CSHB 88(L&C).                                                                                      
                                                                                                                                
CHAIR VANCE sought questions from committee members.                                                                            
                                                                                                                                
1:46:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY  questioned the  increase  from  100 to  200                                                               
workers.                                                                                                                        
                                                                                                                                
MR. MCKEE  explained that the  sponsor wanted to focus  on larger                                                               
warehouse groups  and ensure that small  businesses were excluded                                                               
to avoid unintended consequences.                                                                                               
                                                                                                                                
1:47:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALLARD shared an example  of a bank employee whose                                                               
quota was increased.   She asked whether the purpose  of the bill                                                               
was to regulate businesses and  make them implement these changes                                                               
to avoid being sued by workers who oppose quota increases.                                                                      
                                                                                                                                
REPRESENTATIVE  RAUSCHER said  Representative Allard  had phrased                                                               
the bill  in a light that  did not accurately reflect  the bill's                                                               
intent.   He shared a  personal anecdote and opined  that workers                                                               
should  not need  to  "drop [dead]"  in order  to  earn a  salary                                                               
because  quotas   have  been   raised  beyond   the  expectations                                                               
expressed at the time of hire.                                                                                                  
                                                                                                                                
1:51:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALLARD  asked why a representative  from the union                                                               
was testifying unless the goal was to unionize.                                                                                 
                                                                                                                                
REPRESENTATIVE RAUSCHER  contended that  the bill  resonated with                                                               
him because  of his personal  background.  He clarified  that the                                                               
goal was  not to unionize, adding  that, as a legislator,  he was                                                               
trying to do something that would benefit the workers in Alaska.                                                                
                                                                                                                                
MR. FITZGERALD,  in response to Representative  Allard, explained                                                               
that  in a  quota-based  industry, work  speed  data was  already                                                               
being  kept by  employers and  used  to track  the efficiency  of                                                               
employees.  The  bill would simply allow employees  to track that                                                               
data.   He clarified that the  law would apply to  all employees,                                                               
both union and nonunion, in Alaska.                                                                                             
                                                                                                                                
1:54:58 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE cited  the "Right to request a  quota description" on                                                               
page 2  of the  bill and  asked the bill  sponsor to  address the                                                               
impact of the 21-day calendar, [as referenced on lines 23-25].                                                                  
                                                                                                                                
REPRESENTATIVE RAUSCHER  offered to follow up  with the requested                                                               
information.  He reiterated that he  was not pushing a union plan                                                               
with the proposed legislation, just trying to protect workers.                                                                  
                                                                                                                                
1:57:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE C.  JOHNSON shared  his understanding  that should                                                               
the bill pass, it was still  the employer's ability to change the                                                               
quota; however,  it would allow  the employee to know  about that                                                               
change.   For  that  reason, he  surmised that  the  bill was  an                                                               
"employer full  disclosure to  employees act."   In  addition, he                                                               
noted that the fiscal note was incomplete.                                                                                      
                                                                                                                                
CHAIR VANCE announced that CSHB 88(L&C) would be held over.