05/09/2024 05:15 PM Senate LABOR & COMMERCE

         HB 203-PAYMENT OF WAGES; PAYROLL CARD ACCOUNT                                                                      
                                                                                                                                
6:00:45 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration of HOUSE  BILL NO. 203 am "An Act  relating to wage                                                               
payments."                                                                                                                      
                                                                                                                                
CHAIR BJORKMAN noted  that in prior hearing, there  was a request                                                               
for  statistics  regarding  wage  theft. He  asked  Mr.  Bickford                                                               
whether he had statistics to share with the committee.                                                                          
                                                                                                                                
6:01:10 PM                                                                                                                    
CLARK  BICKFORD,  Staff,  Representative  Jesse  Sumner,  Juneau,                                                               
Alaska,  reported that  he was  unable  to provide  hard data  in                                                               
response to  Senator Dunbar's  question [regarding  the potential                                                               
impact of HB 203 on the incidence  of wage theft]. He said he met                                                               
with the payroll  department for the [City and  Borough of Juneau                                                               
(CBJ)] and the  payroll department for the  state legislature. He                                                               
said they reported  less than ten percent of  their employees opt                                                               
for  paper checks,  and  that they  adamantly  push employees  to                                                               
electronic   payment  for   reasons  discussed   yesterday:  that                                                               
electronic   forms  of   payment   are   more  convenient,   more                                                               
environmentally friendly,  and less vulnerable to  theft. He said                                                               
it  was  also  important  to note  that  the  General  Government                                                               
bargaining  unit  (GGU),  which  is  the  largest  union  in  the                                                               
executive  branch  in  Alaska doesn't  give  a  [paper  paycheck]                                                               
option to their employees, for  the same reasons, that electronic                                                               
payment is more convenient and  less likely to [be vulnerable to]                                                               
theft of  wages or lost checks.  He said this is  the same choice                                                               
many  employers make  for their  employees. He  said the  sponsor                                                               
urged  the committee  to return  to the  original version  [of HB
]  that  was passed  out  of  the  House, Labor  and  Commerce                                                               
[committee] before  it was passed out  of the House. He  said Mr.                                                               
Lewis was online with a short, prepared statement on wage theft.                                                                
                                                                                                                                
6:03:07 PM                                                                                                                    
CHAIR BJORKMAN invited  Mr. Lewis to share his  statement on wage                                                               
theft with the committee.                                                                                                       
                                                                                                                                
6:03:17 PM                                                                                                                    
DAN LEWIS,  Vice President of Government  Affairs, Automatic Data                                                               
Processing (ADP),  Roseland, New Jersey, clarified  that ADP does                                                               
not  track  specific  data  on  wage  theft.  He  said  employees                                                               
receiving pay through  pay cards or electronic  means receive the                                                               
same  information as  those with  paper paychecks.  He said  they                                                               
would have  available all the  records to validate  accurate pay.                                                               
He said  that information  would be  housed in  a portal  that is                                                               
electronically available and retained  for the employees, so they                                                               
have easy and  long-term access to the information  on their pay.                                                               
He  emphasized  that  employees have  access  to  that  [payroll]                                                               
information much  more quickly  than they  would through  a paper                                                               
paycheck,  allowing  for  quicker and  earlier  opportunities  to                                                               
identify discrepancies  in their  pay. He suggested  that Senator                                                               
Dunbar's  question my  have reflected  concern that  it would  be                                                               
more likely that unbanked or  underbanked employees would be more                                                               
likely  to receive  pay through  pay cards,  and that  population                                                               
also  may  be at  higher  risk  for  wage  theft. He  said  [that                                                               
population] should be afforded the  protections that he outlined.                                                               
He said  he did  not think  that there would  be greater  risk to                                                               
employees  that  are paid  through  pay  card rather  than  paper                                                               
checks. He said they would  probably be more protected [from wage                                                               
theft by receiving their pay through pay cards].                                                                                
                                                                                                                                
6:05:12 PM                                                                                                                    
SENATOR GRAY-JACKSON expressed appreciation  for the provision in                                                               
HB 203 for employees who were unable to have a bank account.                                                                    
                                                                                                                                
6:05:40 PM                                                                                                                    
CHAIR BJORKMAN opened  public testimony on HB  203; finding none,                                                               
he closed public testimony.                                                                                                     
                                                                                                                                
6:06:01 PM                                                                                                                    
CHAIR BJORKMAN solicited a motion.                                                                                              
                                                                                                                                
6:06:02 PM                                                                                                                    
SENATOR  GRAY-JACKSON   moved  to  adopt  the   Senate  committee                                                               
substitute  (SCS) for  HB  203, work  order  33-LS0857\A, as  the                                                               
working document.                                                                                                               
                                                                                                                                
6:06:16 PM                                                                                                                    
CHAIR BJORKMAN objected for purposes of explanation.                                                                            
                                                                                                                                
6:06:17 PM                                                                                                                    
MR. BICKFORD explained  that HB 203 would give the  choice to the                                                               
employer whether to  offer paper checks. He said  if the employer                                                               
does  not  want  to  [offer paper  paychecks],  they  would  give                                                               
employees an option between direct  deposit or a payroll card. He                                                               
said  the  decision  would  lie  solely  with  the  employer.  He                                                               
referred to  the largest union in  Alaska [GGU] as an  example of                                                               
an employer offering only electronic forms of pay.                                                                              
                                                                                                                                
6:07:01 PM                                                                                                                    
CHAIR BJORKMAN removed his objection.                                                                                           
                                                                                                                                
6:07:13 PM                                                                                                                    
CHAIR BJORKMAN found no further objection  and the SCS for HB 203                                                               
was adopted.                                                                                                                    
                                                                                                                                
6:07:21 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
6:07:25 PM                                                                                                                    
SENATOR GRAY-JACKSON moved  to report SCS HB 203,  work order 33-                                                               
LS0857\A,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
6:07:40 PM                                                                                                                    
CHAIR  BJORKMAN  found  no  objection and  SCS  HB  203(L&C)  was                                                               
reported from the Senate Labor and Commerce Standing Committee.