00Enrolled HB 199                                                                                                         
01 Removing the annual adjustment to the minimum wage based on the rate of inflation; and                                  
02 providing for an effective date.                                                                                        
03                           _______________                                                                               
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, 2003, an employer shall pay to each                             
07       employee wages at a rate of not less than $7.15 an hour for hours worked in a pay                                 
08       period, whether the work is measured by time, piece, commission, or otherwise.  An                                
09       employer may not apply tips or gratuities bestowed upon employees as a credit toward                              
10       payment of the minimum hourly wage required by this section.  Tip credit as defined                               
11       by the Fair Labor Standards Act of 1938 as amended does not apply to the minimum                                  
12       wage established by this section.  [THE DEPARTMENT SHALL, BY                                                      
13       REGULATION, NOT LATER THAN SEPTEMBER 30 OF EACH CALENDAR                                                          
14       YEAR, ADJUST THE MINIMUM WAGE FOR INFLATION, EFFECTIVE FOR                                                        

01       THE FOLLOWING CALENDAR YEAR.  THE MINIMUM WAGE SHALL BE                                                           
02       EITHER THE MOST RECENT WAGE ADJUSTED FOR 100 PERCENT OF THE                                                       
03       RATE OF INFLATION BASED ON THE CONSUMER PRICE INDEX FOR ALL                                                       
04       URBAN CONSUMERS FOR ANCHORAGE, ALASKA, PREPARED BY THE                                                            
05       UNITED STATES BUREAU OF LABOR STATISTICS OR $1 MORE THAN THE                                                      
06       FEDERAL MINIMUM WAGE, WHICHEVER IS GREATER.  THE                                                                  
07       DEPARTMENT SHALL ROUND THE ADJUSTED MINIMUM WAGE UP TO                                                            
08       THE NEAREST ONE CENT.  THE ADJUSTED WAGE SHALL APPLY TO                                                           
09       WORK PERFORMED BEGINNING ON JANUARY 1 THROUGH DECEMBER 31                                                         
10       OF THE YEAR FOR WHICH IT IS EFFECTIVE.]                                                                           
11    * Sec. 2.  This Act takes effect September 30, 2003.