00                      CS FOR HOUSE BILL NO. 56(L&C)                                                                     
01 "An Act relating to minimum wages; and providing for an effective date."                                                
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 section                         
04 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 earn far less than the                                  
09 federal poverty level for a family of three;                                                                            
10            (3)  the west coast states of Washington, Oregon, and California already have a                              
11 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:                                                                     
15            (a)  Except as provided under (b) of this section, for work performed on or                              

01       after the effective date of this Act, an employer shall pay to each employee wages at                         
02       a rate of not less than $7.15 [50 CENTS] an hour [GREATER THAN THE                                            
03       PREVAILING FEDERAL MINIMUM WAGE LAW] for hours worked in a pay                                                    
04       period, whether the work is measured by time, piece, commission, or otherwise.  An                                
05       employer may not apply tips or gratuities bestowed upon employees as a credit toward                              
06       payment of the minimum hourly wage required by this section.  Tip credit as defined                               
07       by the Fair Labor Standards Act of 1938 as amended does not apply to the minimum                                  
08       wage established by this section.  The department shall, by regulation, not later                             
09       than September 30 of each calendar year, adjust the minimum wage for inflation,                               
10       effective for the following calendar year.  The minimum wage shall be either the                              
11       most recent wage adjusted for 50 percent of the rate of inflation based on the                                
12       Consumer Price Index for all urban consumers for Anchorage, Alaska, prepared                                  
13       by the United States Bureau of Labor Statistics or $1.00 more than the federal                                
14       minimum wage, whichever is greater.  The department shall round the adjusted                                  
15       minimum wage up to the nearest one cent.  The adjusted wage shall apply to                                    
16       work performed beginning on January 1 through December 31 of the year for                                     
17       which it is effective.                                                                                        
18    * Sec. 3.  This Act takes effect January 1, 2003.