03/09/2009 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB29 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 29 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 9, 2009
3:18 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Mark Neuman, Vice Chair
Representative Bob Lynn
Representative Robert L. "Bob" Buch
Representative Lindsey Holmes
MEMBERS ABSENT
Representative Mike Chenault
Representative John Coghill
COMMITTEE CALENDAR
HOUSE BILL NO. 29
"An Act increasing the minimum wage; and providing for an
effective date."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 29
SHORT TITLE: ALASKA MINIMUM WAGE
SPONSOR(s): REPRESENTATIVE(s) OLSON
01/20/09 (H) PREFILE RELEASED 1/9/09
01/20/09 (H) READ THE FIRST TIME - REFERRALS
01/20/09 (H) L&C, FIN
02/23/09 (H) L&C AT 3:15 PM BARNES 124
02/23/09 (H) Heard & Held
02/23/09 (H) MINUTE(L&C)
WITNESS REGISTER
JENNIFER SENETTE, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on HB 29, on behalf of the prime
sponsor, Representative Kurt Olson.
BRIAN RAE, Economist
Research and Analysis Section
Division of Administrative Services
Department of Labor & Workforce Development (DLWD)
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 29.
CHRYSTAL SCHOENROCK, Owner
4Lands Bar
Nikiski, Alaska
POSITION STATEMENT: Testified during the discussion of HB 29.
ACTION NARRATIVE
3:18:00 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:18 p.m. Representatives Buch,
Lynn, Neuman, and Olson were present at the call to order.
Representatives Holmes arrived as the meeting was in progress.
3:18:35 PM
HB 29-ALASKA MINIMUM WAGE
CHAIR OLSON announced that the only order of business would be
HOUSE BILL NO. 29, "An Act increasing the minimum wage; and
providing for an effective date."
JENNIFER SENETTE, Staff, Representative Kurt Olson, Alaska State
Legislature, provided a brief refresher on the bill. She stated
that HB 29 would raise the minimum wage in Alaska to $7.15 or
$.50 higher than the federal minimum wage. She offered that the
federal minimum wage is scheduled to be increased in July 2009.
Alaska has historically had a minimum wage that is approximately
$.50 higher than the states in the Lower 48. This bill would
effectively set Alaska's minimum wage at $7.75.
MS. SENETTE pointed out that some confusion seemed to exist at
the last hearing about the number of Alaskans who would be
affected by this bill. She indicated that approximately 9,000
Alaskans would benefit from HB 29, which is not necessarily the
number of people employed at the minimum wage. She offered that
the Department of Labor & Workforce Development can provide some
additional information and details.
3:21:06 PM
CHAIR OLSON announced that a suggested amendment to HB 29 was
submitted to the House Labor and Commerce Standing Committee
within 24 hours of the meeting. He related the committee's
policy is to accept amendments for consideration using a 24-hour
rule. Thus, the amendment will be taken up at the next
committee meeting, he stated.
3:21:49 PM
MS. SENETTE, in response to Representative Neuman, explained
that Alaskans who would be affected by the bill are those who
earn less than $7.75 per hour.
REPRESENTATIVE NEUMAN asked for a breakout of the industries for
the 9,000 employees who earn the minimum wage.
3:23:59 PM
BRIAN RAE, Economist, Research and Analysis Section, Division of
Administrative Services, Department of Labor & Workforce
Development (DLWD), stated that he is also supervisor for the
Occupational Information unit.
REPRESENTATIVE NEUMAN inquired as to the job classifications for
the Alaskans who are paid at the minimum wage level.
MR. RAE answered that in absolute numbers of people affected,
large numbers of people in the accommodation and food services
of the visitor industry, restaurants, tourism related retail
trade sector work at minimum wage. In terms of the percentages
of people affected within an industry, he indicated the
industries would include hotels, restaurants, and manufacturing,
such as the seafood processing industry.
3:24:48 PM
REPRESENTATIVE NEUMAN asked for a breakout of the job
classifications for those Alaskans who are paid at the minimum
wage level.
MR. RAE explained that the estimates are based on U.S. Bureau of
Labor statistics prepared in cooperation with the Department of
Labor & Workforce Development (DLWD). He explained that the
wage survey information figure of 9,000 minimum wage employees
is based on a 2007 survey, which is the most current survey
available. Of those, approximately 3,400 people were employed
in the accommodation and food services industry such as hotels
and restaurants. Another 1,100 employees were involved in the
seasonal retail trade, as well as approximately 1,100 employees
employed in the educational services such as private preschools.
He related that approximately 20 industry groups are tracked in
the public and private sectors.
MR. RAE, in response to Representative Neuman, answered that the
total employment in Alaska is approximately 302,000.
REPRESENTATIVE NEUMAN related that including credit for tips
earned would affect about 3,400 people, or about one tenth of
one percent of the total workforce. He related his
understanding that one concern about excluding people who earn
tips from the bill is that in some industries tips are
significant and employees may earn up to $40,000 per year. He
surmised that due to the downturn in the economy that people
will probably earn fewer tips.
MR. RAE offered that differences exist between the term
"industry" and "occupation". He related that in the hotel and
restaurant industries, not all employees earn tips. He further
related that in examining the occupational groups and those who
may make less than $7.15, that one of the largest groups
includes waiters and waitresses. He estimated that about 1,300
waiters and waitress occupations earn $7.15 or less.
3:28:58 PM
REPRESENTATIVE NEUMAN related that HB 29 may change the minimum
wage for only 1,300 people. He inquired as to the justification
to impose the minimum wage for such a small number of people.
CHAIR OLSON answered that the issue of whether to include
employees who earn tips may be raised, but that he hopes to add
one small amendment when HB 29 has another hearing.
3:30:05 PM
REPRESENTATIVE BUCH asked if Mr. Rae could identify how many are
single family parents earn the minimum wage.
MR. RAE answered no. In further response to Representative
Buch, Mr. Rae explained that he could not identify the number of
households that would be affected by the bill. He explained
that the DLWD survey is completed by employers who only inform
the department the level of salaries that they pay their
employees and not demographic data.
3:31:08 PM
REPRESENTATIVE BUCH asked if he had any demographic data on the
workers who earn minimum wages in Alaska.
MR. RAE answered no.
3:31:20 PM
CHRYSTAL SCHOENROCK, Owner, 4Lands Bar, stated that she is a
member of the state Cabaret, Hotel, Restaurant, and Retailers
Association (CHARR) and is also the secretary of the Kenai
Peninsula Alaska Cabaret, Hotel, Restaurant, and Retailers
Association (CHARR), and the National Federation of Independent
Businesses (NFIB), but that she is representing herself. She
stated that she just read that Alaska's unemployment is rising
and that approximately 5,200 jobs are due for layoffs or have
already been done. She offered that some oil company support
companies in her area such as CH2M Hill, and ConocoPhillips
Alaska, Inc. which means that oilfield jobs are declining and
some are rumored to lay off additional employees in June. She
said that she did not see how she could afford to pay more in
workers' compensation, state unemployment, or federal taxes.
She offered her belief that this is not the time to consider a
wage increase. She noted other factors that affect the numbers
of clients, such as the nearby communities of Kenai and Soldotna
are currently attempting to ban smoking in bars which may affect
her business. She explained that her business has already seen
a ten percent decrease. She related that the oil industry
layoffs will affect the economy. She said, "It's going to hurt,
hurt us bad."
3:34:26 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 29.
CHAIR OLSON announced that HB 29 would be held over for further
consideration.
3:34:57 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:34 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 12 HB29 Leg. Research.pdf |
HL&C 3/9/2009 3:15:00 PM |
HB 29 |
| 11 HB29 Letter of Support - AARP.pdf |
HL&C 3/9/2009 3:15:00 PM |
HB 29 |
| 14 HB29 Letter of Support - AMHB.pdf |
HL&C 3/9/2009 3:15:00 PM |
HB 29 |
| 13 HB29 Formulation Memo.pdf |
HL&C 3/9/2009 3:15:00 PM |
HB 29 |
| Mar 9 Packet Information.pdf |
HL&C 3/9/2009 3:15:00 PM |
HB 29 |