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Enrolled HB 182: Amending the Alaska Wage and Hour Act as it relates to the employment of a person acting in a supervisory capacity or in an administrative, executive, or professional capacity; relating to definitions under the Alaska Wage and Hour Act and providing definitions for persons employed in administrative, executive, and professional capacities, for persons working in the capacity of an outside salesman, for persons working in the capacity of a salesman employed on a straight commission basis, and for persons that perform computer-related occupations; directing retrospective application of the provisions of this Act to work performed before the effective date of this Act for purposes of claims filed on or after the effective date of this Act, and disallowing retrospective application for purposes of claims for that work that are filed before the effective date of this Act.

00Enrolled HB 182 01 Amending the Alaska Wage and Hour Act as it relates to the employment of a person acting 02 in a supervisory capacity or in an administrative, executive, or professional capacity; relating 03 to definitions under the Alaska Wage and Hour Act and providing definitions for persons 04 employed in administrative, executive, and professional capacities, for persons working in the 05 capacity of an outside salesman, for persons working in the capacity of a salesman employed 06 on a straight commission basis, and for persons that perform computer-related occupations; 07 directing retrospective application of the provisions of this Act to work performed before the 08 effective date of this Act for purposes of claims filed on or after the effective date of this Act, 09 and disallowing retrospective application for purposes of claims for that work that are filed 10 before the effective date of this Act. 11 _______________

01 * Section 1. AS 23.10.055 is amended to read: 02 Sec. 23.10.055. Exemptions; compensation of executives, administrators, 03 and professionals. The provisions of AS 23.10.050 - 23.10.150 do not apply to 04 (1) an individual employed in agriculture, which includes farming in 05 all its branches and, among other things, includes the cultivation and tillage of the soil, 06 dairying, the production, cultivation, growing, and harvesting of any agricultural or 07 horticultural commodities, the raising of livestock, bees, fur-bearing animals, or 08 poultry, and any practices, including forestry and lumbering operations, performed by 09 a farmer or on a farm as an incident to or in conjunction with the farming operations, 10 including preparation for market, or delivery to storage or to market or to carriers for 11 transportation to market; 12 (2) an individual employed in the catching, trapping, cultivating or 13 farming, netting, or taking of any kind of fish, shellfish, or other aquatic forms of 14 animal and vegetable life; 15 (3) an individual employed in the hand picking of shrimp; 16 (4) an individual employed in domestic service, including a baby- 17 sitter, in or about a private home; 18 (5) an individual employed by the United States or by the state or a 19 political subdivision of the state, except as provided in AS 23.10.065(b), including 20 prisoners not on furlough detained or confined in prison facilities; 21 (6) an individual engaged in the nonprofit activities of a nonprofit 22 religious, charitable, cemetery, or educational organization or other nonprofit 23 organization where the employer-employee relationship does not, in fact, exist, and 24 where services rendered to the organization are on a voluntary basis and are related 25 only to the organization's nonprofit activities; for purposes of this paragraph, 26 "nonprofit activities" means activities for which the nonprofit organization does not 27 incur a liability for unrelated business income tax under 26 U.S.C. 513, as amended; 28 (7) an employee engaged in the delivery of newspapers to the 29 consumer; 30 (8) an individual employed solely as a watchman or caretaker of a 31 plant or property that is not in productive use for a period of four months or more;

01 (9) an individual employed 02 (A) in a bona fide executive, administrative, or professional 03 capacity; 04 (B) [OR] in the capacity of an outside salesman or a salesman 05 who is employed on a straight commission basis; or 06 (C) as a computer systems analyst, computer programmer, 07 software engineer, or other similarly skilled worker; 08 (10) an individual employed in the search for placer or hard rock 09 minerals; 10 (11) an individual under 18 years of age employed on a part-time basis 11 not more than 30 hours in a week; 12 (12) employment by a nonprofit educational or child care facility to 13 serve as a parent of children while the children are in residence at the facility if the 14 employment requires residence at the facility and is compensated on a cash basis 15 exclusive of room and board at an annual rate of not less than 16 (A) $10,000 for an unmarried person; or 17 (B) $15,000 for a married couple; 18 (13) an individual who drives a taxicab, is compensated for taxicab 19 services exclusively by customers of the service, whose written contractual 20 arrangements with owners of taxicab vehicles, taxicab permits, or radio dispatch 21 services are based upon flat contractual rates and not based on a percentage share of 22 the individual's receipts from customers, and whose written contract with owners of 23 taxicab vehicles, taxicab permits, or radio dispatch services specifically provides that 24 the contract places no restrictions on hours worked by the individual or on areas in 25 which the individual may work except to comply with local ordinances; 26 (14) a person who holds a license under AS 08.54 and who is 27 employed by a registered guide or master guide licensed under AS 08.54, for the first 28 60 workdays [WORK DAYS] in which the person is employed by the registered 29 guide or master guide during a calendar year; 30 (15) an individual engaged in activities for a nonprofit religious, 31 charitable, civic, cemetery, recreational, or educational organization where the

01 employer-employee relationship does not, in fact, exist, and where services are 02 rendered to the organization under a work activity requirement of AS 47.27 (Alaska 03 temporary assistance program); 04 (16) an individual who 05 (A) provides emergency medical services only on a voluntary 06 basis; 07 (B) serves with a full-time fire department only on a voluntary 08 basis; or 09 (C) provides ski patrol services on a voluntary basis; or 10 (17) a student participating in a University of Alaska practicum 11 described under AS 14.40.065. 12 * Sec. 2. AS 23.10.055 is amended by adding new subsections to read: 13 (b) Notwithstanding (c) of this section, an individual employed in a bona fide 14 executive, administrative, or professional capacity shall be compensated on a salary or 15 fee basis at a rate of not less than two times the state minimum wage for the first 40 16 hours of employment each week, exclusive of board or lodging that is furnished by the 17 individual's employer. 18 (c) In (a)(9) of this section, 19 (1) "bona fide executive, administrative, or professional capacity" has 20 the meaning and shall be interpreted in accordance with 29 U.S.C. 201 - 219 (Fair 21 Labor Standards Act of 1938), as amended, or the regulations adopted under those 22 sections; 23 (2) "computer systems analyst, computer programmer, software 24 engineer, or other similarly skilled worker" has the meaning and shall be interpreted in 25 accordance with 29 U.S.C. 201 - 219 (Fair Labor Standards Act of 1938), as amended, 26 or the regulations adopted under those sections; 27 (3) "outside salesman" means an employee 28 (A) who is customarily and regularly away from the employer's 29 place of business; and 30 (B) whose primary duty is making sales or contracts for sales, 31 consignments, or shipments, or obtaining orders for services or for use of

01 facilities for which consideration will be paid by the client or customer; 02 (4) "salesman who is employed on a straight commission basis" means 03 an employee 04 (A) who is customarily and regularly employed on the business 05 premises of the employer; 06 (B) who is compensated on a straight commission basis for the 07 purpose of making sales or contracts for sales, consignments, shipments, or 08 obtaining orders for services or the use of facilities for which a consideration 09 will be paid by the client or customer; and 10 (C) whose primary duty is making sales or contracts for sales, 11 consignments, shipments, or obtaining orders for service or the use of facilities 12 for which a consideration will be paid by the client or customer. 13 * Sec. 3. AS 23.10.060(a) is amended to read: 14 (a) An employer who employs employees engaged in commerce or other 15 business, or in the production of goods or materials in the state, may not employ an 16 employee for a workweek longer than 40 hours or for more than eight hours a day. 17 [THIS SECTION DOES NOT APPLY TO THE EMPLOYMENT OF A PERSON 18 ACTING IN A SUPERVISORY CAPACITY.] 19 * Sec. 4. AS 23.10.085(b) is amended to read: 20 (b) The regulations may, without limiting the generality of (a) of this section, 21 define terms used in AS 23.10.050 - 23.10.150, and restrict or prohibit industrial 22 homework or other acts or practices that the director finds appropriate to carry out the 23 purpose of AS 23.10.050 - 23.10.150, or to prevent the circumvention or evasion of 24 AS 23.10.050 - 23.10.150. [IF THE REGULATIONS DEFINING AN INDIVIDUAL 25 EMPLOYED IN A BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR 26 PROFESSIONAL CAPACITY FOR PURPOSES OF AS 23.10.055 REQUIRE THAT 27 THE INDIVIDUAL RECEIVE A MINIMUM SALARY, THE REQUIRED 28 MINIMUM SALARY MUST BE TWO TIMES THE STATE MINIMUM WAGE 29 FOR THE FIRST 40 HOURS OF EMPLOYMENT EACH WEEK.] 30 * Sec. 5. AS 23.10.145 is amended to read: 31 Sec. 23.10.145. Definitions. If not defined in this title or in regulations

01 adopted under this title, terms used in AS 23.10.050 - 23.10.150 shall be defined as 02 they are defined in 29 U.S.C. 201 - 219 ( [THE FEDERAL] Fair Labor Standards Act 03 of 1938), as amended, or the regulations adopted under those sections [IT]. 04 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 APPLICATION AS TO WORK PERFORMED BEFORE THE EFFECTIVE DATE 07 OF THIS ACT. (a) This Act applies retrospectively to work performed before the effective 08 date of this Act for purposes of any claim or proceeding based on AS 23.10.050 - 23.10.150 09 (Alaska Wage and Hour Act) that is filed on or after the effective date of this Act. 10 (b) This Act does not apply to work performed before the effective date of this Act for 11 purposes of any claim or proceeding based on AS 23.10.050 - 23.10.150 that is filed before 12 the effective date of this Act.