04/08/2014 01:30 PM Senate LABOR & COMMERCE

             HB 276-MOTOR VEHICLE DEALER EMPLOYEES                                                                          
                                                                                                                                
2:04:01 PM                                                                                                                    
CHAIR DUNLEAVY  announced the  consideration of  HB 276.  "An Act                                                               
making  the Alaska  Wage  and Hour  Act  inapplicable to  certain                                                               
employees  of  motor  vehicle  dealers;   and  providing  for  an                                                               
effective date." This was the second hearing.                                                                                   
                                                                                                                                
2:04:43 PM                                                                                                                    
JANE PIERSON, Staff, Representative  Steve Thompson, Alaska State                                                               
Legislature,  Juneau, Alaska,  explained  that  HB 276  clarifies                                                               
that automobile  sales personnel, finance personnel,  and service                                                               
writers are  exempt from  the Alaska Minimum  Wage and  Hour Act.                                                               
These people are  paid on a commission basis and  have never been                                                               
hourly employees.                                                                                                               
                                                                                                                                
2:05:53 PM                                                                                                                    
STEVE  ALLWINE, Alaska  Automobile  Dealers Association,  Juneau,                                                               
Alaska, introduced himself.                                                                                                     
                                                                                                                                
SENATOR MICCICHE asked if there were  instances in the past of an                                                               
employee who didn't  understand that their compensation  was on a                                                               
commission basis.                                                                                                               
                                                                                                                                
MR. ALLWINE said no, but  recent litigation highlighted this as a                                                               
potential   problem.  As   stated  in   the  sponsor   statement,                                                               
clarification  in  statute  appears  to  be  the  most  effective                                                               
solution.                                                                                                                       
                                                                                                                                
CHAIR DUNLEAVY closed public testimony.                                                                                         
                                                                                                                                
2:06:47 PM                                                                                                                    
SENATOR  MICCICHE moved  to  report HB  276  from committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR  DUNLEAVY announced  that without  objection, HB  276 moved                                                               
from the Senate Labor and Commerce Standing Committee.