Legislature(2023 - 2024)BARNES 124
01/24/2024 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Workforce Solutions for Alaska | |
| HB146 | |
| HB204 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 179 | TELECONFERENCED | |
| += | HB 146 | TELECONFERENCED | |
| *+ | HB 204 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 159 | TELECONFERENCED | |
HB 204-OVERTIME PAY EXEMPTION
4:21:09 PM
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 204, "An Act exempting certain employees from
overtime pay requirements; and providing for an effective date."
4:21:37 PM
JEREMY APPLEGATE, Program Manager, Wage and Hour, Division of
Labor Standards and Safety, Department of Labor and Workforce
Development (DLWD), summarized the sponsor statement for HB 204
[included in committee packet], which read as follows [original
punctuation provided]:
House Bill 204 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.
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 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.
4:25:17 PM
REPRESENTATIVE SADDLER sought clarification about
employee/employer signed flexible work plans and whether the
employee could work 10-hour shifts four times a week and not be
subject to overtime, but if they worked five, 10-hour shifts a
week, then they would be subject to overtime hours.
MR. APPLEGATE confirmed that anything worked outside the plan
would be paid as overtime.
4:25:46 PM
REPRESENTATIVE FIELDS offered his understanding that under
current law, if a surgery center wanted to pay someone for
three, 12-hour days, the center could do that but would have to
pay overtime.
MR. APPLEGATE confirmed that's correct.
REPRESENTATIVE FIELDS asked whether surgery centers have
provided evidence that they are financially constrained and
cannot pay overtime.
MR. APPLEGATE responded that he is unaware of such concerns but
was told that the change would benefit centers in hiring and
firing employees by offering suitable working hours.
REPRESENTATIVE FIELDS questioned whether the department has
modeled what the reduction in a nurse's pay would be as a result
of not being paid overtime.
MR. APPLEGATE answered that he does not have such numbers but
said that any overtime that would have been worked as part of
the plan would be offset as straight time rather than overtime.
He explained that if the individual worked further and outside
the plan, then overtime would still exist.
4:27:28 PM
REPRESENTATIVE SADDLER referred to the list of employers who are
exempt from overtime. He asked if any finding of an employer's
financial condition was a determining factor as to whether or
not their employees could be exempt from overtime.
MR. APPLEGATE answered no.
4:28:05 PM
REPRESENTATIVE CARRICK inquired as to how much money overtime is
costing facilities currently. She further asked for the average
wage of people working in the professions listed under HB 204.
MR. APPLEGATE responded that he does not have such information
but could direct Representative Carrick to the appropriate
agency with the data.
4:29:07 PM
REPRESENTATIVE PRAX asked if the department has tracked the cost
of going back and forth to work.
MR. APPLEGATE answered that he is unaware of anyone tracking
that data.
4:30:00 PM
CHAIR SUMNER suggested that a 40-hour in four-day plan is
already possible. He asked if companies in the industry already
offer a 10-hour flex plan and pay the additional two hours.
MR. APPLEGATE answered yes, 10-hour plans are used across
various industries. He explained that the bill would add to the
availability and therefore provide for longer workdays. He
stressed that the statutes around flex plans direct the employer
to maintain the schedule that is agreed to in the flex plan; if
employees work beyond the plan, then it has to be due to
circumstances beyond control of the employer. If plan
violations occur 20 percent of the time that the plan is in
place, then it could be invalidated.
4:32:05 PM
REPRESENTATIVE FIELDS inquired as to how many businesses are
using such plans now, and how many employees are affected.
MR. APPLEGATE said he has no data to provide. He said that once
an employer has an approved plan, the plan can apply to any
employees that voluntarily enter it.
4:33:08 PM
REPRESENTATIVE CARRICK asked if Mr. Applegate has a comment from
DLWD about the reason why HB 204 is limited to just the health
industry, when it is known that there is a lot of overtime used
in other professions.
MR. APPLEGATE answered that the health industry has expressed
interest in 12-hour plans; in hospitals, 12 hours is the
standard shift for a nurse.
4:34:42 PM
REPRESENTATIVE SADDLER asked whether the bill would obligate a
surgery center employee to work overtime.
MR. APPLEGATE answered that it is the department's position that
an employee serves at the employers request; if the employee
would like to opt out of working overtime, they are open to do
so, but there may be consequences. He said entry into a flex
plan is voluntary for an employee, as they cannot be compelled
to do so or have it be made as a condition of employment.
REPRESENTATIVE SADDLER asked for confirmation that the proposed
bill would not obligate overtime.
MR. APPLEGATE answered correct.
REPRESENTATIVE SADDLER inquired whether under HB 204, an
employee who voluntarily entered into a flex plan could agree to
work 12 hours.
MR. APPLEGATE answered that's correct.
REPRESENTATIVE SADDLER asked if the bill just would expand the
flexible work plan from 10 to 12 hours.
MR. APPLEGATE answered that's correct.
4:36:05 PM
REPRESENTATIVE PRAX questioned if the flex plan option is
available universally.
MR. APPLEGATE answered yes, but currently just for 10 hours.
REPRESENTATIVE PRAX offered that there are many people who are
working two jobs.
4:37:02 PM
REPRESENTATIVE RUFFRIDGE commented that the committee discussion
is focusing around forcing an employee to work or taking away
overtime. He explained that in the medical industry, the
ability to hire someone is based on a facility's ability to pay
a 12-hour work day; oftentimes for the employer, they may not
hire an individual if the flex plan is only available at 10
hours. He observed that HB 204 may help the ability of
employers to fill vacant positions, and he asked if that is the
purpose of the bill.
MR. APPLEGATE answered that the title "flexible work hour plan"
is accurate, and that such plans would provide flexibility for
employees.
REPRESENTATIVE RUFFRIDGE, regarding why the bill applies only to
certain entities, asked if the reason for the request was due to
the inability to hire people who wished to have a 12-hour work
plan.
MR. APPLEGATE said he does not have an answer.
4:38:58 PM
REPRESENTATIVE FIELDS requested, at a later meeting, the most
recent data on orthopedic reimbursement rates in Alaska.
4:40:23 PM
REPRESENTATIVE PRAX asked whether the bill would take away or
provide something.
MR. APPLEGATE answered that it is providing the ability for
employees to opt in for a more flexible schedule.
4:40:55 PM
REPRESENTATIVE SADDLER asked if the department provides the
legislature information regarding the profitability of
businesses in Alaska
MR. APPLEGATE replied that he doesn't know.
4:41:25 PM
REPRESENTATIVE FIELDS suggested that Mr. Applegate collaborate
with other departments to get more information.
MR. APPLEGATE answered that he can get members in contact with
people who could answer questions.
4:41:50 PM
CHAIR SUMNER said he doesn't know if profitability data is
available. He shared that he would like to see DLWD provide
overtime data for the industries listed within the bill.
4:42:12 PM
CHAIR SUMNER announced that HB 204 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 204 Sponsor Statement Version A.pdf |
HL&C 1/24/2024 3:15:00 PM |
HB 204 |
| HB 204 Sectional Analysis Version A.pdf |
HL&C 1/24/2024 3:15:00 PM |
HB 204 |
| 2024-01-21 HB159 Letter in Support.pdf |
HL&C 1/24/2024 3:15:00 PM |
HB 159 |
| OPPOSING HB 159_ag.pdf |
HL&C 1/24/2024 3:15:00 PM |
HB 159 |
| icor-joint-support-for-licensure-5-9-2023.pdf |
HL&C 1/24/2024 3:15:00 PM |
HB 159 |
| HB159 Support Letter.pdf |
HL&C 1/24/2024 3:15:00 PM |
HB 159 |
| 2024-01-19 HB159 Letter in Support.pdf |
HL&C 1/24/2024 3:15:00 PM |
HB 159 |
| HB 204 Bill Introduction.pptx |
HL&C 1/24/2024 3:15:00 PM |
HB 204 |
| ASMA Support LTR HB204.pdf |
HL&C 1/24/2024 3:15:00 PM |
HB 204 |