00 HOUSE BILL NO. 364                                                                                                    
01 "An Act relating to and increasing the state minimum wage."                                                             
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
03    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new                                 
04 section to read:                                                                                                        
05  FINDINGS.  The legislature finds that                                                                                  
06   (1)  an increase in the state minimum wage will help ensure a minimum                                                 
07 standard of living for the health and well-being of every Alaskan;                                                      
08   (2)  employees working full-time at the minimum wage in effect in February                                            
09 2000, earn far less than the federal poverty level for a family of three;                                               
10   (3)  the west coast states of Washington, Oregon, and California already have                                         
11 a higher minimum wage than the minimum wage in Alaska;                                                                  
12   (4)  a fair minimum wage indexed to the cost-of-living will help low-income                                           
13 workers keep pace with inflation.                                                                                       
14    * Sec. 2.  AS 23.10.065(a) is amended to read:                                                                     
01  (a)  Except as provided under (b) of this section,  for work performed on or                                         
02 after the effective date of this Act and before January 1, 2001,  an  employer shall                                   
03 pay to each employee wages at a rate of  $6.50 an hour  [NOT LESS THAN 50                                             
04 CENTS AN HOUR GREATER THAN THE PREVAILING FEDERAL MINIMUM                                                               
05 WAGE LAW] for hours worked in a pay period, whether the work is measured by                                             
06 time, piece, commission, or otherwise.  An employer may not apply tips or gratuities                                    
07 bestowed upon employees as a credit toward payment of the minimum hourly wage                                           
08 required by this section.  Tip credit as defined by the Fair Labor Standards Act of                                     
09 1938 as amended does not apply to the minimum wage established by this section.                                         
10  For work performed beginning on January 1, 2001, through December 31, 2001,                                           
11 an employer shall pay each employee wages at a rate of $6.75 an hour.  For work                                         
12 performed  after December 31, 2001, an employer shall pay each employee wages                                           
13 at a rate adjusted for inflation as provided in this subsection.  Beginning in 2001,                                    
14 no later than September 30 of the calendar year, the Department of Labor and                                            
15 Workforce Development shall, by regulation, adjust the minimum wage for                                                 
16 inflation, effective for the following calendar year, based on the Consumer Price                                       
17 Index for all urban consumers for Anchorage, Alaska,  prepared by the United                                            
18 States Bureau of Labor Statistics.  The department shall round the adjusted                                             
19 minimum wage up to the nearest one cent.  The adjusted wage shall apply to                                              
20 work performed beginning on January 1 through December 31 of the year for                                               
21 which it is effective.