00                             HOUSE BILL NO. 42                                                                          
01 "An Act increasing the minimum wage; creating an annual adjustment to the minimum                                       
02 wage based on the rate of inflation; and providing for an effective date."                                              
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) of this section and as otherwise provided for                              
06       in law, for work performed on or after July 1, 2007 [JANUARY 1, 2003], an                                     
07       employer shall pay to each employee wages at a rate of not less than the wage                                 
08       established in this subsection [$7.15 AN HOUR] for hours worked in a pay period,                              
09       whether the work is measured by time, piece, commission, or otherwise. An employer                                
10       may not apply tips or gratuities bestowed upon employees as a credit toward payment                               
11       of the minimum hourly wage required by this section. Tip credit as defined by the Fair                            
12       Labor Standards Act of 1938 as amended does not apply to the minimum wage                                         
13       established by this section. The minimum wage under this subsection is the greater                            
14       of                                                                                                            

01                 (1)  $1 more an hour than the federal minimum wage; or                                              
02                 (2)  $8.00 an hour as adjusted under this paragraph; the                                            
03       department shall, by regulation, not later than September 30 of each calendar                                 
04       year, adjust the minimum wage established in this paragraph for inflation                                     
05       effective for the following calendar year; the adjusted wage shall be the most                                
06       recent wage under this paragraph adjusted for 100 percent of the rate of inflation                            
07       based on the Consumer Price Index for all urban consumers for the Anchorage                                   
08       metropolitan area, compiled by the Bureau of Labor Statistics, United States                                  
09       Department of Labor; the department shall round the adjusted minimum wage                                     
10       up to the nearest one cent; the adjusted wage shall apply to work performed                                   
11       beginning on January 1 through December 31 of the year for which it is effective.                             
12    * Sec. 2. This Act takes effect July 1, 2007.