Legislature(2021 - 2022)GRUENBERG 120
02/28/2022 01:00 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB372 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 372 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 372-ELIMINATE MINIMUM WAGE EXEMPTION
1:05:26 PM
CHAIR CLAMAN announced that the only order of business would be
HOUSE BILL NO. 372, "An Act relating to exemptions from minimum
wage."
1:05:52 PM
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, as prime
sponsor, presented HB 372. He pointed out that HB 372 would
eliminate a section of law which has not been used since 2018.
He stated that in 2018 regulations which allowed employers to
hire a worker with a physical or mental disability and pay this
person subminimum wage had been repealed. He argued that the
existence of the provision would provide for future regulations
allowing a subminimum wage for workers with disabilities. He
noted that work plays an important role in life, contributing to
economic and social wellbeing, and many individuals with
disabilities are actively employed and productive throughout
Alaska. He maintained that paying a subminimum wage based on a
disability is a discriminatory policy, and workers should never
be paid less based on a perceived disability rather than
demonstrated abilities. He maintained that the minimum wage is
the "floor rather than the ceiling" for fair compensation.
1:09:00 PM
MYRANDA WALSO, Acting Executive Director, Governor's Council on
Disabilities and Special Education, Department of Health and
Social Services (DHSS) provided invited testimony on HB 372.
She read excerpts from a document entitled, "HB 372 Supporting
Document - GCDSE Letter 2.23.2022.pdf," [included in the
committee packet]. She stated that the Governor's Council on
Disabilities and Special Education (GCDSE) is an organization
which works with community and state agencies, ensuring those
with intellectual and developmental disabilities and their
families receive services and supports, as well as participate
in the planning and design of these services. She noted that,
since the federal minimum wage was established in 1938, a
special reduced compensation rate was allowed for those with
disabilities known as the "subminimum wage." She explained that
the provision allows employers holding a 14(c) certificate from
the United States Department of Labor to pay those with
disabilities less than the federal or state minimum wage in
place, using productivity rates as the sole factor in evaluating
the performance of those with disabilities. She characterized
the practice as discriminatory, creating a class of workers who
are deemed less solely based on a disability; therefore, paid
less compared to a standard of nondisabled coworkers. She
referenced the letter, which read as follows [original
punctuation provided]:
Can you imagine this being an acceptable standard to
evaluate an individual because of their race? What if
someone was required to meet a productivity quota in
order to be paid the minimum wage only if they had a
certain color skin? Or what if a woman could be paid
less solely because she was pregnant or nursing? What
if all individuals over the age of 65 had to prove
they deserved to earn minimum wage at their job, but
younger individuals did not? All of these scenarios
are just as discriminatory and just as archaic as this
provision in Alaska law to hold to the notion that an
individual with a disability does not have the same
standing in the job market, regardless of the quality
of their work or their talents, gifts, abilities, and
skills.
In Alaska, the Employment First Act requires
vocational services be provided to help people with
disabilities become gainfully employed at or above the
minimum wage.
In 2018, the regulations enacting subminimum wages for
those with disabilities was repealed by the State
Department of Labor and Workforce Development. We
strongly support the repeal of the statutory provision
which would allow such a regulation to be reintroduced
in the future. It is not acceptable for public
policies to remain in effect which conflict with the
basic premise that all those with disabilities are
valuable members of society and have the same rights
as everyone else to fully participate in all aspects
of life, including gainful employment and the pursuit
of economic self-sufficiency. We urge the legislature
to move forward with repealing this provision and
ensuring the laws of Alaska reflect our values.
1:11:58 PM
HEIDI LIEB-WILLIAMS, Chair, Governor's Council on Disabilities
and Special Education, Department of Health and Social Services,
provided invited testimony on HB 372. She shared that she has
lived with disabilities and has been designated as an Honoree of
the Women's Federation for World Pease for the United States.
She stated that, speaking as a disabled person, she and others
experiencing disabilities have gifts and talents of value to
offer in employment, and judging a person based on a disability
and offering the person [less than minimum wage] is demeaning.
She argued that repealing the provision in the law would
acknowledge the skills and talents individuals with disabilities
bring to employment. She urged the passage of HB 372.
1:14:25 PM
COREY GILMORE, Chair, Committee Inclusion, Supports and Services
Committee, Governor's Council on Disabilities and Special
Education, Department of Health and Social Services, provided
invited testimony on HB 372. He noted that in 2018, GCDSE
passed the Developmental Disability Shared Vision, which served
to change the way people with disabilities receive services, and
one of these services is helping to secure gainful employment.
He related his personal experience of being judged by people
based on the way he moves and talks. He shared that some
individuals avoid talking directly to him in mixed company. He
stated that he attended college and has many life pursuits. He
characterized a job offer with a subminimum wage as subhuman and
an insult to his intelligence. He urged the passage of HB 372.
1:17:28 PM
RIC NELSON, Chair, Self-Advocacy and Leadership Committee,
Governor's Council on Disabilities and Special Education,
Department of Health and Social Services, provided invited
testimony on HB 372, with the aid of an interpreter. He offered
biographical information. His interpreter read an excerpt from
the committee packet item entitled, "HB 372 Supporting Document
- GCDSE Member Statements 2.23.2022.pdf," which read as follows
[original punctuation provided]:
This bill is so important because all people no matter
their disability should get paid at least minimum wage
to do the same job as their able-bodied peers. Having
a law that singles someone out as not deserving the
same pay solely because of their disability is
dehumanizing. As a person with a disability who has
worked hard to have a successful career and earned a
master's degree, I find that this statute reinforces
the misconception that individuals with disabilities
are somehow a liability for an employer. Keeping this
statute sends the message that Alaska is a land of
opportunity only if you are not disabled.
1:19:32 PM
REPRESENTATIVE EASTMAN asked whether there existed data
reflecting positive or negative impacts following the repeal of
the regulations in 2018.
REPRESENTATIVE TUCK stated that he is unaware of any supporting
data and explained that GCDSE has brought forward the issue of
the law still in existence.
REPRESENTATIVE EASTMAN asked where a source of data may exist to
demonstrate positive impacts resulting from the repeal of the
regulation, including data from other states which have taken
similar action.
1:21:37 PM
MIKE MASON, Staff, Representative Chris Tuck, Alaska State
Legislature, offered to conduct research, including researching
data from other states.
CHAIR CLAMAN asked the Department of Labor and Workforce
Development to offer its perspective on the repeal of the
regulation and any entity which may have requested subminimum
wage exemptions.
1:22:20 PM
TANYA KEITH, Program Manager, Wage and Hour, Labor Standards and
Safety, Department of Labor and Workforce Development (DOLWD),
answered that the department has no record of requests for the
exemption.
CHAIR CLAMAN asked Ms. Keith to confirm whether the statute had
ever been applied to an employer exemption.
MS. KEITH answered that records retained for the prior six to
ten years revealed no example of an exemption having been
granted.
CHAIR CLAMAN asked whether a business entity would be required
to apply to DOLWD for such an exemption.
MS. KEITH confirmed this as correct.
1:23:33 PM
REPRESENTATIVE DRUMMOND questioned whether there is statutory
reference to the term "subhuman."
MR. MASON answered that the term "subhuman" has no reference in
the state's statutes; however, the term has been alluded to in
other state's statutes. He noted that he had not seen the exact
phrasing of "subhuman" in state law.
REPRESENTATIVE EASTMAN noted other exemptions in the state's
statute, and he questioned this process which may be sought by
an employer.
REPRESENTATIVE TUCK offered the example of a 40-hour workweek in
which employees may request 4, 10-hour workdays. He explained
that employees request such exemptions, and the request would be
subject to the approval of the commissioner.
MS. KEITH stated that many exemptions exist, and some require
approval from DOLWD, such as a flexible work plan. She noted
other exemptions, such as the job of hand-picking shrimp. She
stated that this exemption is automatic and does not require a
request for approval from DOLWD.
MS. KEITH, in response to a question from Representative
Eastman, said that the [subminimum wage] exemption has always
been subject to approval by the commissioner. In response to a
follow-up question, she stated that automatic exemptions are not
tracked or reported.
1:28:49 PM
REPRESENTATIVE SNYDER expressed support for removing the
language from the statute. She referred to Section 1 of the
bill and questioned the proposed legislation's effect on workers
under the age of 18, who are temporarily employed by nonprofit
organizations.
REPRESENTATIVE TUCK answered that the criteria of age would be
allowed for an exemption to minimum wage, subject to approval by
the commissioner. He explained that this would apply to
individuals in school-to-work programs or apprenticeship
programs. He noted that the King Tech High School offers on-
the-job training for less than minimum wage.
REPRESENTATIVE SNYDER, per the proposed legislation, referred to
the words, "nonprofit" and "learner" on line 8 and line 15,
respectively. She questioned whether "learner" was being
emphasized and asked for additional explanation of the
"nonprofit" qualification for exemption [to minimum wage.]
REPRESENTATIVE TUCK offered examples of the Alaska Works
Partnership, Incorporated and the Alaska [Technical] Center in
Kotzebue. He explained that at these facilities students may
seek training and education. He stated that the Alaska Works
Partnership facilitates employment of students with the goal of
future employment at the facility.
1:32:39 PM
CHAIR CLAMAN opened public testimony on HB 372.
1:33:11 PM
PATRICK REINHART, Director, Alaska Mobility Coalition, testified
in support of HB 372. He offered a brief biographical history.
He expressed the opinion that HB 372 would strike an unwanted
and unnecessary provision from existing statute. He stated that
programs have previously existed, for which the exemption may
have been appropriate, but those programs are no longer in
existence.
1:34:44 PM
CHAIR CLAMAN ascertained that there was no one else who wished
to testify and closed public testimony on HB 372.
1:35:12 PM
REPRESENTATIVE EASTMAN questioned the proposed legislation's
exemption to minimum wage for nonprofit organizations.
REPRESENTATIVE TUCK answered that the intent would be to provide
training and education opportunities. He pointed out that this
is not for business entities to profit by paying employees less.
1:36:06 PM
REPRESENTATIVE KURKA stated that, as a business owner, he was
required to train new employees. He offered that many
businesses have a training process for employees. He requested
comments on this statement.
REPRESENTATIVE TUCK answered that the only exemption the
proposed bill would provide is for indentureships and
apprenticeships, which are not the typical training associated
with new employee training. He emphasized that the proposed
bill would underscore the right for those with disabilities to
be paid at least minimum wage.
REPRESENTATIVE EASTMAN, referring to exemptions for shrimp
handlers, asked for additional information on exemptions subject
to approval by the commissioner.
REPRESENTATIVE TUCK answered that the previous line of
questioning pertained to those who may be subject to approval by
the commissioner. He noted that HB 372 would be specific to the
payment of compensation below minimum wage. He noted that other
exemptions would not be affected by the passage of HB 372.
MR. MASON requested that Ms. Keith weigh in on the exemptions
which may exist.
CHAIR CLAMAN responded that none of the exemptions being
discussed appear in AS 23.10.070.
MR. MASON offered to follow up to the committee with additional
information on exemptions.
1:40:27 PM
CHAIR CLAMAN announced that HB 372 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 372 v. A 2.22.2022.PDF |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Sponsor Statement v. A 2.28.2022.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Sectional Analysis v. A 2.28.2022.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Supporting Document - GCDSE 2022 Talking Points 2.28.2022.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Supporting Document - GCDSE Subminimum Wage Policy Paper 2.28.2022.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Supporting Document - Think Work Paper January 2017 2.28.2022.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Supporting Document - AS 23.10.070 and Conflicts 2.28.2022.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Supporting Document - Regulations Repealed Press Release 2.16.2018.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Supporting Document - GCDSE Letter 2.23.2022.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Supporting Document - GCDSE Member Statements 2.23.2022.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |
| HB 372 Fiscal Note DOLWD-WH 2.25.2022.pdf |
HJUD 2/28/2022 1:00:00 PM HJUD 3/2/2022 1:00:00 PM HL&C 3/4/2022 9:00:00 AM |
HB 372 |