00HOUSE BILL NO. 370                                                                                                    
01 "An Act relating to a short-term exemption from the minimum wage for newly                                              
02 hired young employees."                                                                                                 
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)  or (d)  of this section, an employer shall pay                                   
06 to each employee wages at a rate of not less than 50 cents an hour greater than the                                     
07 prevailing Federal Minimum Wage Law  for hours worked in a pay period, whether                                          
08 the work is measured by time, piece, commission, or otherwise.  An employer may not                                     
09 apply tips or gratuities bestowed upon employees as a credit toward payment of the                                      
10 minimum hourly wage required by this section.  Tip credit as defined by the Fair                                        
11 Labor Standards Act of 1938 as amended does not apply to the minimum wage                                               
12 established by this section.                                                                                            
13    * Sec. 2.  AS 23.10.065 is amended by adding a new subsection to read:                                             
14  (d)  In place of the wage rate required by (a) of this section, an employer may                                       

01 pay an employee who has not yet reached 20 years of age, during the first 90                                            
02 consecutive calendar days in which the employee is initially employed by the                                            
03 employer, a wage that is not less than 85 percent of the wage rate required by (a) of                                   
04 this section.  An employer may not take any action to displace employees, including                                     
05 reduction in hours worked, wages, or employment benefits, to hire individuals at the                                    
06 wage authorized by this subsection.