Legislature(2025 - 2026)BUTROVICH 205
03/26/2025 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s) State Board of Parole Board of Governors of the Alaska Bar | |
| SB78 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 78 | TELECONFERENCED | |
SB 78-DISCLOSURE OF WAGE INFORMATION
2:03:54 PM
CHAIR CLAMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 78 "An Act relating to
disclosure of information regarding employee compensation by
employers, employees, and applicants for employment."
CHAIR CLAMAN said that this is the first hearing of SB 78 in the
Senate Judiciary Committee. He invited the bill sponsor to put
himself on record and begin.
2:04:28 PM
SENATOR FORREST DUNBAR, District J, Alaska State Legislature,
Juneau, Alaska, introduced himself.
2:04:52 PM
ARIELLE WIGGIN, Staff, Senator Forrest Dunbar, Alaska State
Legislature, Juneau, Alaska, introduced SB 78 on behalf of the
sponsor and presented the sectional analysis. She introduced
SB 78, as paraphrased below:
SB 78 does four key things: it prohibits employers
from asking about an applicant salary history; job
postings must include salary or salary range
disclosures; protects a workers right to discuss
wages; and bars retaliation for doing so. The bill
addresses a well-documented issue called wage
scarring. After mass layoffs or other events that are
uncontrollable in employees' lives, displaced workers
earned significantly less in their first year coming
back from a recession. The 2008 recession, for
example, resulted in displaced earners earning 27
percent less in their first year and 10 percent less
after a decade. Much of this is due to accepting
unstable or lower-quality employment post layoff or
post illness. Removing salary history from the
application cycle helps break the cycle by ensuring
returning workers aren't anchored to lower past wages
outside of their control.
2:05:52 PM
MS. WIGGIN continued the introduction of SB 78:
Coincidentally, yesterday was Equal Pay Day, which was
observed on March 25. Equal Pay Day is a reminder that
in 2024, women earned 85 percent of what their male
counterparts earned, indicating that they are paid
significantly less than men. It took until March 25
for women to catch up to the salaries earned by their
counterparts the previous year. It takes much longer
for those in other demographics who are paid much
less. It may take Alaska Native individuals a full
year to catch up to their previous salaries, as they
earned 53 percent on the dollar in 2024.
Salary transparency is a proven step forward to
closing these gaps. Federal law already protects wage
discussions, but this bill reinforces that protection
in State law and makes compensation expectations clear
from the start. This bill has an incompatibility
measure allowing enforcement through fines, and also
ensures pay is based on current skills, not outdated
or inequitable past wages. It streamlines hiring by
reducing the time spent on interviews that fall apart
over salary discussions.
Alaska's workforce deserves clarity, fairness, and
respect. This bill is a practical next step. Thank you
for your support.
2:07:21 PM
MS. WIGGIN presented the sectional analysis for SB 78:
[Original punctuation provided.]
SECTIONAL ANALYSIS
SB 78: DISCLOSURE OF WAGE INFORMATION
Sec. 1: Amends AS 23.10 Employment Practices and
Working Conditions by adding Article 9. Disclosure of
Employee Compensation and the following sections:
• Sec. 23.10.700. Disclosure of Discussion Wages:
(a) Requires job postings to include a salary or
salary range.
(b) Allows applicants and employees to discuss
current wage, prohibits employers from asking
applicants about their salary history with
another employer
(c) Clarifies that nothing in this section obligates
an employee or applicant to disclose their
compensation, prohibits an employee or applicant
from voluntarily disclosing, or prohibits an
employer from using information that is
voluntarily disclosed under this subsection when
determining the salary of an employee or
applicant.
• Sec. 23.10.705 Posting Summary Required requires an
employer to post information summarizing the bill's
provisions.
• Sec. 23.10.710 Retaliation Prohibited prohibits an
employer from retaliating against an employee for
exercising a right under the bill.
• Sec. 23.10.715 Damages for Retaliation allows an
employee to file a civil claim against an employer
if the employer retaliates.
2:08:36 PM
MS. WIGGIN continued her presentation of the sectional analysis
for SB 78:
• Sec. 23.10.720 Statute of Limitations gives an
employee no more than 3 years after a violation to
file a civil claim.
• Sec. 23.10.725 Penalty creates a fine between $100-
$2000 for violations and directs the Department of
Labor and Workforce Development Commissioner to
determine the amount. An employer may, at the
discretion of the Commissioner, reduce the fine or
correct the violation by conducting an audit.
• Sec. 23.10.735 Regulations adds language directing
the Department of Labor and Workforce Development
Commissioner to implement and interpret this bill
and adopt regulations accordingly.
• Sec. 23.10.790 Definitions exempts independent
contractors from the definition of "employee."
Defines an "employer" as the state, the University
of Alaska, the Alaska Railroad Corporation, a
political subdivision of the state, and a person who
employs one or more employees.
• Sec. 2: Amends the uncodified law of the State of
Alaska by adding a new section specifying that this
Act applies to compensation for services performed
on or after the effective date of this Act.
2:09:35 PM
SENATOR MYERS observed that the definition section mentions the
University of Alaska and the Alaska Railroad Corporation, but
does not mention other state-owned corporations, such as the
Alaska Industrial Development and Export Authority, Alaska
Housing Finance Corporation, and the Alaska Energy Authority. He
asked why the bill does not include other entities.
MS. WIGGIN expressed her understanding that those other
subdivisions are, by default, included in this law because they
are considered employers under the State of Alaska. In contrast,
the University of Alaska is sometimes considered an independent
employer, as is the Alaska Railroad Corporation, because it is
largely governed by federal law. She explained that those two
entities are specifically included in the definitions section
because they are not, by default, subject to this law. She said
she will verify with Legislative Legal Services and respond in
writing.
2:10:31 PM
SENATOR KIEHL stated that the legislation requires an employer
to describe the compensation for a job with either a specific
salary or a range of salaries. He asked what a reasonable goal
is for a "range of salaries" description, wondering whether it
could be as broad as between $35,000 and $185,000.
MS. WIGGIN replied that the bill does not detail this, and the
sponsor would like to consider the question and respond in
writing. She expressed that the hope is the department would
review information from one of the other twenty-two states that
have enacted similar laws and use that to inform the regulations
Alaska creates. She said if the bill sponsor finds it is
necessary to define the range, he would consider the change.
SENATOR KIEHL said that he is interested in how other states
approached the subject of "range of salaries, so that it is
meaningful, but also, not always a requirement that the employer
post the precise salary.
SENATOR KIEHL said SB 78 requires some speech, such as posting
salary and benefit ranges, and also prohibits some speech by
preventing an employer from asking about an applicant's previous
job salaries. He asked whether the sponsor foresees the
potential for First Amendment concerns or challenges from
employers.
2:12:15 PM
SENATOR DUNBAR replied that he did not believe this would
constitute an actionable First Amendment issue. He explained
that other states enacted similar laws, and it is his
understanding that those laws have not been challenged. He
stated that if those laws were challenged, they survived. He
said that established employment law already places limits on
what may be included in job postings, noting that employers
cannot state, for example, that only certain races may apply. He
said the bill fits within existing examples of what is
considered proper or improper to include in a job listing.
SENATOR KIEHL remarked that was a fair response.
2:13:23 PM
SENATOR MYERS referred to page 1, line 14 through page 2,
line 1, which states that an employer may not "ask an applicant
for employment about compensation the applicant may have
received from another employer?". He asked whether this includes
not only compensation received from previous employers, but also
compensation offered by potential employers with whom the
applicant interviewed but did not accept a job offer.
MS. WIGGIN replied that the intent of the legislation pertains
to salaries that were actually received. She said she would
verify her response with Legislative Legal Services.
SENATOR MYERS recalled a personal example, stating that a
coworker and he had both started working at the same company.
The coworker shared that he had interviewed with another
employer for a similar position, but the pay was too low, and
the two ultimately ended up working together at the higher-
paying job. The coworker relayed that information back to the
first employer, explaining why he declined the offer. He said
the other employer later contacted the coworker and reported
that as a result of their conversation, the company increased
its wages.
SENATOR MYERS said he understood that the goal of the
legislation is to empower workers. He said the ability to
compare wages empowers not only individual workers but can also
prompt employers to adjust their wages. He noted that if the
goal of SB 78 is transparency, this raises a concern about the
prohibition. He expressed hesitancy about the restriction and
requested further explanation for the rationale behind blocking
questions about previous salary history.
2:16:55 PM
MS. WIGGIN replied that the intention of SB 78 is to disallow
employers from asking about past wage history and other
artifacts of a person's life, such as periods of illness,
accepting lower-paid work due to childcare needs, performing
childcare, or caring for an ill relative. She said those
circumstances can create a wage record that does not reflect an
applicant's true value. She stated that many studies show
people's wages are artificially affected negatively by factors
outside their control. She noted that recession scarring may
include accepting lower-paying jobs, but the bill's intent is to
prevent workers from being penalized because of the
circumstances of life. She said she could return with several
studies related to this issue.
2:18:06 PM
SENATOR MYERS said he is interested in reviewing some of the
material at some point.
2:18:11 PM
CHAIR CLAMAN noted that the legislation attempts to strike an
interesting balance. He explained that while the bill prohibits
an employer from asking about previous wages, an employee is
free to disclose that information voluntarily. He said the bill
allows an employer to express interest in knowing an applicant's
prior wages, provided the employer does not compel the
disclosure. Many applicants may choose to provide that
information, and there is nothing improper about that. He said
the balance the bill seeks to createallowing an employee to
disclose if they wish while preventing an employer from forcing
the issue during the application processis a subtle
distinction.
2:18:56 PM
SENATOR TOBIN said that she served on the Association of
Fundraising Professionals Women's Impact Initiative prior to
serving with the legislature. The organization advocated for pay
equity for all fundraising professionals within its membership
of forty-nine thousand individuals, predominantly women. She
emphasized that people are paid not for the work they have done,
but for the work they will do. Employers pay for an individual's
potential, not solely for past experience. She said an employer
may be interested in a person's background, but the individual
will be asked to perform tasks beyond the scope of that
background, and it is that potential in which the employer
invests.
SENATOR TOBIN shared a story involving a close friend to
illustrate her point. Her friend took a ten-year hiatus to raise
her children and prepare them for school. When her friend
reentered the workforce, her previous salary as a chief
executive officer of a company was no longer competitive to
present day salaries. She said that if her friend could be
compelled to disclose her past salary and a potential employer
based a new salary on that figure, the result would be
inadequate given her experience and the value she would bring to
any new position. She expressed her belief that the bill
prudently ensures that individuals are protected from the wage
impacts created by the various circumstances life may present.
2:20:35 PM
CHAIR CLAMAN announced invited testimony on SB 78.
2:21:01 PM
MIKE WALSH, Vice President of Public Policy, The Foraker Group,
Anchorage, Alaska, offered the following testimony in support of
SB 78:
The Foraker Group serves as the state's nonprofit
association and capacity builder for Alaska
nonprofits. As the committed voice for Alaska's
nonprofit sector, Foraker appreciates the opportunity
to speak before the Senate Judiciary Committee on
Senator Dunbar's SB 78: Disclosure of Wage
Information. Our interest in this bill relates to the
data that might emerge that helps us in our work
related to gender pay equity. That's a topic we are
generally genuinely dedicated to in our daily work and
for the long haul.
For context, part of our commitment to Alaska's
nonprofit sector is to be a source of research that
can be translated into policy action focused on
improving the lives of Alaskans and the communities
where we live. For more than two decades, Foraker has
been gathering data and sharing information about the
economic impact of nonprofits on Alaska's economy. We
have gathered data on Alaska's nonprofit employment
generally and specifically about Alaska's gender pay
gap. While we recently released the most up-to-date
information on nonprofit employment generally, we're
also on the verge of publicly releasing our latest
data on the persistent existence of that gender pay
gap in Alaska. We understand that SB 78 is focused on
pay transparency as it relates to the larger issue of
workforce development, and not on ending the gender
pay gap specifically. That being said, we know from
our extensive research that one goes hand in hand with
the other. In other words, pay transparency is a
critical tool in addressing gender pay equity.
2:23:09 PM
MR. WALSH continued his invited testimony on SB 78:
In my limited time today, I simply want to reiterate
that The Foraker Group supports SB 78, which will help
with recruiting and retaining Alaska workers across
all sectors of our economy, including the 34,000 jobs
currently in the state's nonprofit workforce. Foraker
has been committed to advancing pay transparency for
more than a decade. We proudly model this commitment
on our free job board, which is heavily utilized
across the state as a trusted source of information on
nonprofit employment opportunities. As part of that
commitment, Foraker requires each organization that
posts on the job board to list the pay range, and we
explain why that's important. Beyond our own internal
efforts, we know there is considerable documented
research showing that pay transparency laws support
all workers in their job searches. We know that
filling vacant positions is time-consuming and
expensive, and maximizing both the employees time and
the job seekers time is in everybody's best interest.
Alaska will not be the first state to incorporate pay
transparency, and we certainly don't want to be the
last to adopt this commonsense solution for our
workforce. Thank you, Senator Dunbar, for introducing
SB 78, and we look forward to sharing more ways we can
all promote a healthy and vibrant Alaska workforce.
Thank you for the opportunity to testify today.
2:25:04 PM
CHAIR CLAMAN opened public testimony on SB 78; finding none, he
closed public testimony.
2:25:29 PM
SENATOR TOBIN cited statistics from the Department of Labor and
Workforce Development publication, Alaska Economic Trends. She
noted that the publication has long tracked the gender pay gap
in Alaska and reported that Alaskan women earned seventy-six
cents for every dollar earned by men in 2019. She emphasized
that this disparity is not explained by differences in
educational attainment, experience, or ability. She said it
reflects a lack of adequate protections and transparency;
factors known to influence whether women receive equitable pay.
SENATOR TOBIN said the approach proposed in SB 78 aligns with
the pay-transparency laws adopted in ten other states. She
stated that such laws are known to help close the gender pay gap
in a significant way. She noted that over a lifetime, women
collectively lose an estimated $1.6 trillion in wage
opportunity, which she said represents money that does not
circulate through the economy, does not support gross domestic
product growth, and does not help communities thrive. She stated
that research shows 76 percent of women support closing the
gender pay gap, with even higher levels of support among Black
women and Alaska Native women. She expressed her belief that
SB 78 is a prudent measure and said she hopes it advances during
the legislative session.
2:27:14 PM
CHAIR CLAMAN held SB 78 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 78 version A.pdf |
SJUD 3/26/2025 1:30:00 PM |
SB 78 |
| SB 78 Sponsor Statement version A.pdf |
SJUD 3/26/2025 1:30:00 PM |
SB 78 |
| SB 78 Sectional Analysis version A.pdf |
SJUD 3/26/2025 1:30:00 PM |
SB 78 |
| Leitoni Tupou Resume- Alaska Board of Parole Board.pdf |
SJUD 3/26/2025 1:30:00 PM |
|
| Donald Handeland Resume- Board of Governors of the Alaska Bar Resume.pdf |
SJUD 3/26/2025 1:30:00 PM |
|
| Letter of Opposition - Leitoni Tupou for the State Board of Patrol 3.12.25.pdf |
SJUD 3/26/2025 1:30:00 PM |