02/27/2003 01:35 PM Senate L&C

           SB  54-OVERTIME PAY FOR AIRLINE EMPLOYEES                                                                        
                                                                                                                              
CHAIR BUNDE announced SB 54 to be up for consideration and told                                                                 
members that he is a cosponsor of the legislation.                                                                              
                                                                                                                                
SENATOR OLSON, sponsor, stated:                                                                                                 
                                                                                                                                
     I  introduced   SB  54  to   bring  certainty   to  the                                                                    
     interpretation of existing  federal-state wage and hour                                                                    
     statutes as they pertain to  the payment of overtime in                                                                    
     the  aviation industry.  Because of  the uniqueness  of                                                                    
     their  working  conditions,   flight  crews  have  been                                                                    
     considered  professionals,   but  are  exempt   from  a                                                                    
     standard  eight-hour   workday,  forty-hour   week  and                                                                    
     associated  overtime requirements  as prescribed  under                                                                    
     the Alaska  statutes. In  conjunction with  the maximum                                                                    
     flight  hour  requirements  set forth  by  the  Federal                                                                    
     Aviation Administration,  these exemptions at  both the                                                                    
     state and  federal level have  allowed the  industry to                                                                    
     structure wage  and hour schedules best  suited for the                                                                    
     work requirements of the flight crew personnel.                                                                            
                                                                                                                                
     Several Alaska  court decisions have raised  a question                                                                    
     about  the correct  interpretation  of  state wage  and                                                                    
     hour laws  and the applications of  overtime exemptions                                                                    
     for flight crews. Indeed,  the confusion has stimulated                                                                    
     other court challenges.                                                                                                    
                                                                                                                                
     SB  54 explicitly  adds  flight crews  to  the list  of                                                                    
     occupations and  employment situations that  are exempt                                                                    
     from Alaska's overtime wage  and hour requirements. The                                                                    
     bill cites the provisions  of the Federal Railway Labor                                                                    
     Act  that  governs air  carriers  in  order to  provide                                                                    
     consistency between  state and federal  applications of                                                                    
     this exemption.                                                                                                            
                                                                                                                                
     With that I ask your support for the passage of SB 54.                                                                     
                                                                                                                                
CHAIR  BUNDE said  the safety  regulations governing  flight time                                                               
for  pilots  are  very  strict  so  that  pilots  aren't  working                                                               
incredible amounts of overtime.                                                                                                 
                                                                                                                                
SENATOR  OLSON  informed   members  that  a  pilot   is  able  to                                                               
accumulate   no  more   than  eight   hours.  There   are  severe                                                               
consequences  if that  is breached  - such  as suspension  of the                                                               
pilot's license.                                                                                                                
                                                                                                                                
SENATOR FRENCH asked if anything  about this law would prevent an                                                               
employer  and  employee  from  contracting  around  it,  if  they                                                               
decided  they wanted  to operate  on an  hourly schedule  and pay                                                               
pilots overtime for more than eight-hour days.                                                                                  
                                                                                                                                
SENATOR  OLSON  replied  that   unions  typically  address  those                                                               
concerns.  The problem  is  that  the misinterpretation  concerns                                                               
have not  been with  the 121  carriers, they  have been  with the                                                               
smaller 135 operators.                                                                                                          
                                                                                                                                
SENATOR  SEEKINS  asked if  he  thought  the federal  regulations                                                               
provide a high  degree of safety for people who  are traveling in                                                               
aircraft in Alaska.                                                                                                             
                                                                                                                                
SENATOR  OLSON  replied that  safety  is  a  major issue  in  his                                                               
business  and  some  people  think  the  regulations  are  overly                                                               
protective.                                                                                                                     
                                                                                                                                
SENATOR  SEEKINS  moved  to  pass   SB  54  from  committee  with                                                               
individual recommendations and its zero  fiscal note. A roll call                                                               
was taken and  Senators Davis, French, Gary  Stevens, Seekins and                                                               
Bunde voted in favor and SB 54 moved from committee.