00                             HOUSE BILL NO. 56                                                                          
01 "An Act relating to minimum wages."                                                                                     
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 23.10.065(a) is amended to read:                                                                  
04            (a)  Except as provided under (b) of this section, an employer shall pay to each                             
05       employee wages at a rate of not less than $6.90 [50 CENTS] an hour [GREATER                                   
06       THAN THE PREVAILING FEDERAL MINIMUM WAGE LAW] for hours worked                                                    
07       in a pay period, whether the work is measured by time, piece, commission, or                                      
08       otherwise.  An employer may not apply tips or gratuities bestowed upon employees as                               
09       a credit toward payment of the minimum hourly wage required by this section.  Tip                                 
10       credit as defined by the Fair Labor Standards Act of 1938 as amended does not apply                               
11       to the minimum wage established by this section.                                                                  
12    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
13 read:                                                                                                                   
14       APPLICABILITY AND TRANSITION.  (a)  AS 23.10.065(a), as amended in sec. 1                                         
15 of this Act, applies to work performed beginning on January 1, 2003, and thereafter.                                    

01       (b)  Notwithstanding the minimum wage amount established in AS 23.10.065(a), as                                   
02 amended in this Act, for work performed beginning on                                                                    
03            (1)  January 1, 2002, through December 31, 2002, the minimum wage amount                                     
04 is $6.40 an hour; and                                                                                                   
05            (2)  the effective date of this Act through December 31, 2001, the minimum                                   
06 wage amount is 50 cents an hour greater than the prevailing Federal Minimum Wage Law.                                   
07       (c)  Notwithstanding AS 23.10.065(b) and (c), beginning on the effective date of this                             
08 Act through December 31, 2002, an employer shall pay to each person employed as a public                                
09 school bus driver wages at a rate of not less than two times the minimum wage established                               
10 under (b) of this section for hours worked in a pay period, whether work is measured by time,                           
11 commission, or otherwise.  An employer may not apply fringe benefits as a credit toward                                 
12 payment of the minimum wage established under this subsection.  An employer who contracts                               
13 with the Department of Education and Early Development, a school district, or a regional                                
14 educational attendance area to provide school bus transportation services is not required to                            
15 adjust school bus driver wages under this subsection except when entering into or renewing                              
16 the contract.                                                                                                           
17       (d)  Beginning on the effective date of this Act through December 31, 2002, references                            
18 in state law to the state minimum wage under AS 23.10.065 shall be considered to refer to the                           
19 state minimum wage under (b) of this section.