Legislature(1997 - 1998)
05/05/1998 03:07 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CSHB 347(L&C) - OVERTIME WAGE EXEMPTION FOR MECHANICS CHAIRMAN LEMAN brought CSHB 347(L&C) before the committee as the next order of business. PETER TORKELSON, staff to Representative John Cowdery, said the legislation was drafted in cooperation with the Department of Labor and the Alaska auto dealers. It is essentially a compromise that all parties believe addresses the key concerns, and will allow flat-rate employers to work overtime to finish up a job or to simply allow the flat-rate mechanic more by working extra hours. MR. TORKELSON said employers currently prohibit their flat-rate mechanics from working overtime because of complications in existing regulations. HB 347 clarifies this by establishing a floor and minimum conditions that an employer must meet to pay overtime to a flat-rate employee. ED FLANAGAN, Deputy commissioner, Department of Labor, stated the department had objections to prior versions of the legislation, but they worked extensively with the industry, the sponsor, and other interested parties and were able to come up with a draft that enables them to remove their opposition to the bill. MR. FLANAGAN said the original bill would have protected the employer against a recalculation of the hourly wage. That worked to the benefit of the employee, but it had no floor for times when the work is slow, other than minimum wage. The current version of the bill has at least doubled the minimum wage or three-quarters of the agreed upon flat rate as the minimum rate for all hours worked, whether they are billing or not, would at least be available as a minimum guarantee. It also preserves the concept of overtime after eight hours at that rate and over forty hours. SENATOR KELLY asked if there was any opposition to HB 347. MR. FLANAGAN said the department was not aware of any opposition to the legislation. STEVE ALWINE, representing the Alaska Auto Dealers Association, affirmed that the legislation was a compromise, and based on the input from their employees, the Department of Labor, the AFL/CIO, and the member dealers, they feel it is an excellent compromise. MR. ALWINE said he knew Chairman Leman had a concern about the twice Alaska minimum wage. However, that issue has been reviewed at length and they don't feel that it will be an issue based on the way these mechanics are paid and the abilities that they have. He added it is an option to what already exists in state statute and federal law so it gives the employers and the employees two ways to approach this. There being no further testimony on HB 347, CHAIRMAN LEMAN requested a motion on the legislation. SENATOR MACKIE moved CSHB 347(L&C) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.
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