05/06/1999 02:20 PM Senate L&C

            HB 201-OVERTIME COMPENSATION COMPUTATION                                                                            
                                                                                                                                
CHAIRMAN MACKIE announced HB 201 to be up for consideration.                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG, sponsor of HB 201, said the bill was                                                                   
drafted in response to a recent reinterpretation of how overtime is                                                             
computed under the Wage and Hour Act.  Judge Weeks in the First                                                                 
Judicial District determined that an individual can be paid twice                                                               
for overtime hours under a pyramid scheme.  For example, if a                                                                   
person worked 11 hours on a Monday and worked eight hours for the                                                               
balance of the week, the person would be paid for three hours of                                                                
overtime on Monday, and three hours of overtime for the week, for                                                               
a total of six hours of overtime.                                                                                               
                                                                                                                                
COMMISSIONER CASHEN, Department of Labor, said the statute has                                                                  
never been interpreted in that way.  The intent of HB 201 is to                                                                 
specifically overturn the intent language so it does not interpret                                                              
commerce and business activity in the State.  It also has a                                                                     
retrospective effect clause under the two year statute of                                                                       
limitations.  The Administration, organized labor, the Chamber of                                                               
Commerce, and every business organization in the State support this                                                             
bill.                                                                                                                           
                                                                                                                                
MR. DWIGHT PERKINS, Department of Labor, testified that this                                                                    
legislation does not change the way overtime has been calculated                                                                
since pre-statehood; it only clarifies current practice in statute.                                                             
                                                                                                                                
CHAIRMAN MACKIE said he has not read the bill yet and wanted to                                                                 
hold it since Labor and Commerce is the only committee of referral.