00                             SENATE BILL NO. 187                                                                         
01 "An Act increasing the minimum wage; creating an annual adjustment to the minimum                                       
02 wage based on the rate of inflation; and providing for an effective date."                                              
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 23.10.065(a) is amended to read:                                                                  
05            (a)  Except as provided under (b) of this section and as otherwise provided for                              
06       in law, for work performed on or after January 1, 2009 [2003], an employer shall pay                          
07       to each employee wages at a rate of not less than the wage established in this                                
08       subsection [$7.15 AN HOUR] for hours worked in a pay period, whether the work is                              
09       measured by time, piece, commission, or otherwise. An employer may not apply tips                                 
10       or gratuities bestowed upon employees as a credit toward payment of the minimum                                   
11       hourly wage required by this section. Tip credit as defined by the Fair Labor Standards                           
12       Act of 1938 as amended does not apply to the minimum wage established by this                                     
13       section. The minimum wage under this subsection is the greater of                                             
14                 (1)  $1 more an hour than the federal minimum wage; or                                              
01                 (2)  $8.00 an hour as adjusted under this paragraph; the                                            
02       department shall, by regulation, not later than September 30 of each calendar                                 
03       year, adjust the minimum wage established in this paragraph for inflation                                     
04       effective for the following calendar year; the adjusted wage shall be the most                                
05       recent wage under this paragraph adjusted for 100 percent of the rate of inflation                            
06       based on the Consumer Price Index for all urban consumers for the Anchorage                                   
07       metropolitan area, compiled by the Bureau of Labor Statistics, United States                                  
08       Department of Labor; the department shall round the adjusted minimum wage                                     
09       up to the nearest one cent; the adjusted wage shall apply to work performed                                   
10       beginning on January 1 through December 31 of the year for which it is effective.                             
11    * Sec. 2. This Act takes effect January 1, 2009.