Legislature(1993 - 1994)
05/06/1994 04:58 PM Senate JUD
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* first hearing in first committee of referral
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SENATE JUDICIARY COMMITTEE
May 6, 1994
4:58 p.m.
MEMBERS PRESENT
Senator Robin Taylor, Chairman
Senator Rick Halford, Vice-Chairman
Senator George Jacko
Senator Dave Donley
Senator Suzanne Little
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 459(JUD) am
"An Act relating to settlement and payment of claims for minimum
wage and overtime compensation claims and to liquidated damages and
attorney fees for minimum wage and overtime compensation claims."
PREVIOUS SENATE COMMITTEE ACTION
HB 459 - No previous action to record.
WITNESS REGISTER
C. J. Zane
Anchorage, AK
POSITION STATEMENT: Testified in support of HB 459
Representative Eldon Mulder
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Supports HB 459
ACTION NARRATIVE
TAPE 94-46, SIDE A
Number 001
CHAIRMAN ROBIN TAYLOR called the Judiciary Committee meeting to
order at 4:58 p.m. He then brought CSHB 459(JUD) am (DAMAGES &
ATTY FEES FOR UNPAID WAGES) before the committee and noted there
was a proposed Judiciary SCS for the committee's consideration.
Number 005
SENATOR HALFORD moved the adoption of SCS CSHB 459(JUD). Hearing
no objection, the motion carried.
Number 008
C.J. ZANE, testifying in support of SCS CSHB 459(JUD), explained
that the legislation is a wage and hour reform that does three
major things:
(1) It restores to the Department of Labor the authority to
settle claims for overtime and wage disputes for less than the
automatic doubling of liquidated damages in cases where that
warrants.
(2) It provides for private settlements whereby the
employer/employee can enter into a private settlement so long as
the employer discloses in writing to the employee that they have
the right to take the settlement agreement to an attorney and/or
the Department of Labor. It also gives them seven days to review
that agreement, and after they sign the agreement, it gives them
five days to rescind the agreement.
(3) It provides for a good faith and reasonable belief
defense against the doubling of liquidated damages only.
Mr. Zane noted that the legislation has wide support although the
trial attorneys have not taken a position on it.
Number 028
REPRESENTATIVE ELDON MULDER said that SCS CSHB 459(JUD) is a
consensus piece of legislation and extensive work was done with the
Department of Labor to make sure that protections were built into
the bill for both the employers and employees. He urged the
committee's support for the legislation.
Number 030
SENATOR JACKO asked if the legislation was good for attorneys or
bad for attorneys. SENATOR TAYLOR said under current law the
prevailing plaintiff is the only one that gets full attorneys fees.
This legislation provides that either party who prevails gets full
attorneys fees against the other.
Number 048
SENATOR DONLEY said there has been a lot of concern expressed about
the legislation, and although he thinks it is a good idea, he would
like to find a way to mitigate some of the concerns about it.
Number 062
SENATOR HALFORD suggested that a written opinion that the bill does
not need a resolution for the title change should be obtained
before the bill goes to the Senate floor. KEVIN SULLIVAN,
committee aide, stated he had a verbal opinion that one was not
needed, but that he would request a written one.
Number 070
SENATOR DONLEY moved that on page 2, line 12, after the word
"shows" insert "by clear and convincing evidence that it was in
good faith." SENATOR HALFORD objected. The roll was taken with
the following result: Senators Donley and Little voted "Yea" and
Senators Jacko, Halford and Taylor voted "Nay." The Chairman
stated the amendment failed.
Number 100
SENATOR DONLEY moved that on page 2, line 17 or line 20, add the
sentence "Ignorance of the law does not constitute good faith under
this section." SENATOR JACKO objected. The roll was taken with
the following result: Senators Donley, Little and Taylor voted
"Yea" and Senators Jacko and Halford voted "Nay." The Chairman
stated the amendment was adopted.
SENATOR TAYLOR stated he would entertain a motion to move the bill
from committee.
Number 122
SENATOR HALFORD moved that SCS CSHB 459(JUD) be passed out of
committee with individual recommendations. SENATOR JACKO objected.
The roll was taken with the following result: Senators Halford,
Little, Donley and Taylor voted "Yea" and Senator Jacko voted
"Nay." The Chairman stated the motion carried.
There being no further business to come before the committee, the
meeting was adjourned at 5:08 p.m.
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