02/18/2003 01:43 PM Senate TRA

           SB  54-OVERTIME PAY FOR AIRLINE EMPLOYEES                                                                        
                                                                                                                                
SENATOR OLSON presented the following sponsor statement.                                                                        
                                                                                                                                
     I  introduced   SB  54  to   bring  certainty   to  the                                                                    
     interpretation of  existing federal and state  wage and                                                                    
     hour statutes  as they pertain  to payment  of overtime                                                                    
     in  the air  transportation industry.   Because  of the                                                                    
     uniqueness  of their  working conditions,  flight crews                                                                    
     have  been  considered  professionals that  are  exempt                                                                    
     from  the standard  8-hour workday;  40  hour week  and                                                                    
     associated     overtime     pay    requirements     [AS                                                                    
     23.10.055(9)].  In conjunction  with the maximum flight                                                                    
     hours   requirements  set   by  the   Federal  Aviation                                                                    
     Administration  [FAA], these  exemptions,  at both  the                                                                    
     state and  federal level, have allowed  the industry to                                                                    
     structure wage  and hour schedules  best suited  to the                                                                    
     work requirements of their flight crew personnel.                                                                          
                                                                                                                                
     Several Alaska  court decisions have raised  a question                                                                    
     about the  correct application of  state wage  and hour                                                                    
     laws  and  the   application  of  overtime  exemptions.                                                                    
     Indeed,  the  confusion   has  stimulated  other  court                                                                    
     challenges.                                                                                                                
                                                                                                                                
     SB  54 explicitly  adds  flight crews  to  the list  of                                                                    
     occupations and  employment situations that  are exempt                                                                    
     from  Alaska's  overtime  wage and  hour  requirements.                                                                    
     The bill  cites the  provisions of the  federal Railway                                                                    
     Labor  Act  that  governs  air  carriers  in  order  to                                                                    
     provide   consistency   between   federal   and   state                                                                    
     applications of the exemption.                                                                                             
                                                                                                                                
CHAIR  COWDERY  asked  if  these   flight  crews  are  considered                                                               
professional.                                                                                                                   
                                                                                                                                
SENATOR  OLSON  explained flight  crews  at  this point  are  not                                                               
listed as professionals however  their interpretation in the past                                                               
has been  that they are  professionals because of  the uniqueness                                                               
of  their  working  conditions.   The  attorney  general's  long-                                                               
standing  opinion has  been that  they are  professionals. SB  54                                                               
specifically lists  flight crews  as professionals so  there will                                                               
be no question.                                                                                                                 
                                                                                                                                
SENATOR  OLSON  moved  SB  54   from  committee  with  individual                                                               
recommendations.  There being no objection, the motion carried.