Legislature(2023 - 2024)

2023-05-16 House Journal

Full Journal pdf

2023-05-16                     House Journal                      Page 1129
HB 204                                                                                                                        
HOUSE BILL NO. 204 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act exempting certain employees from overtime pay                                                                      
     requirements; and providing for an effective date."                                                                        
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1. Fiscal, Dept. of Labor & Workforce Development                                                                               
                                                                                                                                
The Governor's transmittal letter dated May 15 follows:                                                                         
                                                                                                                                
"Dear Speaker Tilton:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill regarding Alaska's overtime laws                                                         
relating to employees of various facilities licensed under AS 47.32,                                                            
including ambulatory surgical centers. The bill provides an exemption                                                           
from overtime pay requirements for employees of these facilities if                                                             
they choose to enter into a voluntary flexible work plan with their                                                             
employer.                                                                                                                       

2023-05-16                     House Journal                      Page 1130
To improve and extend healthcare access, the availability of medical                                                            
services that do not require hospital admissions has increased                                                                  
nationally and within Alaska; however, non-hospital medical facilities                                                          
are at a disparity for managing the work-life balance of healthcare                                                             
employees when compared with hospitals, where employees are                                                                     
exempted from the daily overtime requirement. The result has been a                                                             
noticeable migration of nurses and other critical healthcare staff to                                                           
hospitals where a more flexible schedule allows the employee greater                                                            
control over their time.                                                                                                        
                                                                                                                                
Alaska law requires overtime pay for eligible employees to begin                                                                
either after eight working hours in a day or after 40 cumulative hours                                                          
in a workweek. Employees may, however, work up to 10 hours a day                                                                
without triggering the overtime requirement if they have a written                                                              
voluntary flexible work plan agreement with their employer that has                                                             
been filed with the Department of Labor and Workforce Development                                                               
and the department has issued a certificate approving the plan. An                                                              
employee working longer than 10 hours a day, or 40 hours in a week,                                                             
is paid at the overtime rate.                                                                                                   
                                                                                                                                
This bill would increase the hours that flexible work plan employees                                                            
of certain facilities may work before triggering overtime pay from 10                                                           
to 12 hours. These facilities include ambulatory surgical centers,                                                              
freestanding birth centers, home health agencies, hospices,                                                                     
intermediate care facilities for individuals with intellectual disabilities,                                                    
residential psychiatric treatment centers, rural health clinics, and                                                            
subacute mental health facilities.                                                                                              
                                                                                                                                
This bill would not affect existing flexible work plan agreements, but                                                          
it would permit employees working at these facilities to negotiate                                                              
plans up to 12 hours per day going forward. Employees of these                                                                  
facilities would still be subject to a total of 40 hours per week for                                                           
overtime pay.                                                                                                                   
                                                                                                                                
This bill will impart flexibility for healthcare workers and provide                                                            
stability for Alaska's healthcare system.                                                                                       
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
                                                                                                                                

2023-05-16                     House Journal                      Page 1131
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"