Legislature(2025 - 2026)BUTROVICH 205

03/26/2025 01:30 PM Senate JUDICIARY

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Audio Topic
01:30:20 PM Start
01:31:05 PM Confirmation Hearing(s) State Board of Parole Board of Governors of the Alaska Bar
02:03:54 PM SB78
02:27:49 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Agenda Change --
Consideration of Governor’s Appointees: Donald
Handeland, Board of Governors of the Alaska Bar
Leitoni Tupou, State Board of Parole
-- Invited & Public Testimony --
*+ SB 78 DISCLOSURE OF WAGE INFORMATION TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
Bills Previously Heard/Scheduled
**Streamed live on AKL.tv**
             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