Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/14/2022 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB185 | |
| SB41 | |
| SB190 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 185 | TELECONFERENCED | |
| += | SB 41 | TELECONFERENCED | |
| += | SB 190 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 185-ELIMINATE MINIMUM WAGE EXEMPTION
1:32:19 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
185 "An Act relating to exemptions from minimum wage."
1:33:16 PM
SENATOR PETER MICCICHE, speaking as sponsor of SB 185, stated
that this legislation repeals the unfair minimum wage exemption
in AS 23.10.070 that justifies paying a substandard wage for
anyone who has a physical or mental disability or is impaired by
age or injury. The regulations have been changed but the
offensive language remains in statute and essentially creates
two classes of Alaskans: those who deserve a fair wage because
they do not have any impairment and those who do not deserve a
fair wage because they experience a physical or mental
deficiency or are impaired by age, or injury. He related that
when the Governor's Council on Disabilities and Special
Education brought this issue to his attention he was surprised
and offended to see that language in statute. SB 185 removes
that offensive language. He said the bill also added a provision
for a community group to pay less than minimum wage to
individuals who are younger than 18 years old when they work on
short-term special projects.
SENATOR MICCICHE summarized that SB 185 removes offensive
language from statute and recognizes that Alaskans with
disabilities are equal on the job.
1:35:30 PM
At ease
1:36:16 PM
CHAIR COSTELLO reconvened the meeting and asked Ms. Govin to go
through the sectional analysis for SB 185.
1:36:26 PM
MADISON GOVIN, Staff, Senator Peter Micciche, Alaska State
Legislature, Juneau, Alaska, presented the sectional analysis
for SB 185 on behalf of the sponsor.
[Original punctuation provided.]
Section 1-Sec.23.10.070-Page 1, Line 8-9
Inserts a minimum wage exemption for an individual
under 18 years old who is temporarily employed by a 501
(c)(3) non-profit organization.
Section 1-Sec.23.10.070-Page 1, Line 10-11
Deletes the minimum wage exemption for anyone whose
earning capacity is impaired by physical or mental
deficiency, age, or injury.
CHAIR COSTELLO mentioned who was available to answer questions.
1:37:06 PM
SENATOR GRAY-JACKSON thanked the sponsor for bringing the bill
forward. She asked for further explanation of the language that
the bill adds to statute.
1:37:40 PM
TANYA KEITH, Supervisor, Wage and Hour, Division of Labor
Standards and Safety, Department of Labor and Workforce
Development (DOLWD), Anchorage, Alaska, offered her
understanding that the added language would provide an exemption
for a minor who is temporarily employed by a nonprofit
organization.
SENATOR GRAY-JACKSON summarized her understanding that somebody
who is age 18 or younger and employed by a nonprofit can be paid
differently than somebody who is older than age 18 and is
employed by another agency.
MS. KEITH further explained that the exemption would not be
automatic. Rather, the nonprofit would have to request the
exemption from DOLWD and the commissioner would have to approve
the request.
CHAIR COSTELLO said her reading is that the commissioner would
establish in regulation the amount individuals would be paid.
MS. KEITH said that's correct. The regulation attached to the
statute was eliminated years ago, so if the bill were to pass a
regulation would have to be written to address how to apply for
the exemption and how it would be approved. She added that the
regulation would stipulate how low the wage could be.
CHAIR COSTELLO directed attention to the language on page 1,
line 6 that says, "by regulation or order." She observed that
the implication is that a nonprofit could hire somebody 18 years
old or younger and with a commissioner's order know almost
immediately what wage it could pay.
MS. KEITH replied that was her reading as well.
1:41:05 PM
SENATOR MICCICHE provided a hypothetical example to explain his
goal. He described a Boys and Girls Club planter box project in
the City of Kenai that sought to teach young people how to
garden and to demonstrate the financial benefit of hard work. He
noted that there is a way for young people to volunteer to work
on certain projects, but he didn't know whether they could be
compensated with something like a gift card that would be
equivalent to less than minimum wage. He asked Ms. Keith to
comment. He summarized that his goal was to encourage community
groups to demonstrate to young people that hard work results in
some level of compensation, although not technically a minimum
wage job.
1:42:43 PM
MS. KEITH explained that AS 23.10.05(a)(11) provides an
exemption from the Wage and Hour Act for somebody who is younger
than age 18 and is employed for not more than 30 hours a week.
These individuals may be paid as little as the federal minimum
wage.
SENATOR STEVENS expressed concern that the bill could result in
the loss of jobs or fewer jobs being available to individuals
with disabilities. He relayed his knowledge of an instance where
a municipality was able to give a young man who had mental and
physical disabilities a job, but it was not equal to that of a
fireman and the young man was paid less than minimum wage.
1:45:07 PM
SENATOR MICCICHE advised that in February 2018 [DOLWD] repealed
Section 8 ACC 15-120 and it became illegal to hire somebody with
a disability at less than minimum wage. SB 185 updates the
statute to reflect that change. He restated that he finds it
offensive that this is in statute even though it hasn't been
used for over four years. He added that there are ways for an
organization to get assistance to employ individuals with a
disability. Young people deserve to be treated like everyone
else on a minimum wage basis.
SENATOR STEVENS said his concern is about potentially leaving
some individuals behind.
1:47:26 PM
CHAIR COSTELLO reported that the Alaska minimum wage is $10.34
per hour and that it will go up next year. The federal minimum
wages is $7.25 per hour. She asked Ms. Keith to talk about the
law that stipulates that individuals may not be paid less than
the federal minimum wage.
MS. KEITH said [AS 23.10.055 (a)(11)] says that "an individual
under 18 years of age employed on a part-time basis not more
than 30 hours in a week" could be exempt from the Wage and Hour
Act. The law also provides that somebody who works less than 30
hours per week may not be paid less than the prevailing federal
minimum wage.
CHAIR COSTELLO asked if she had information about what jobs are
paying less than minimum wage and what the current job market
looks like, because employers like Fred Meyer in her community
are paying much more than minimum wage and seem to be having
difficulty finding workers.
1:49:33 PM
MS. KEITH agreed that in most cases employers are paying more
than minimum wage because employees won't work for less.
CHAIR COSTELLO asked her to talk about the philosophy behind
paying someone who is younger than age 18 years less than
minimum wage.
MS. KEITH said she's read anecdotally that the rationale for
paying individuals who are 14-18 years of age less than minimum
wage is that they potentially need additional oversight.
CHAIR COSTELLO asked the sponsor if the intention is to help the
nonprofit save money by paying less for the work it wants done.
1:51:09 PM
SENATOR MICCICHE replied that was not his intention. The idea is
to provide an opportunity for young people to see that there is
value in hard work. Some of the organizations want to support
the community and participate but they have very little money to
pay for small, short-term projects.
CHAIR COSTELLO asked Ms. Keith if there are Wage and Hour Act
considerations if a young person wants to volunteer their
services for either a nonprofit or for-profit organization.
MS. KEITH replied there are instances where somebody may
volunteer for a nonprofit but not for a for-profit business.
1:52:57 PM
SENATOR STEVENS said, at some point, he would like to hear from
municipalities.
CHAIR COSTELLO said she'd make sure that happens.
1:53:18 PM
CHAIR COSTELLO turned to invited testimony.
1:53:32 PM
HEIDI LIEB-WILLIAMS, Chair, Governor's Council on Disabilities
and Special Education, Provided invited testimony in support of
SB 185. She stated that she is a national speaker advocate who
experiences multiple disabilities and has also broken barriers.
She submitted the following statement from her heart:
We all have gifts and talents to offer and our work is
just as valuable as what others bring to the table,
and we should be paid fairly for our time and
knowledge. It is demeaning that someone could just
look at a person and judge them on the basis of their
disability, and offer them less than they are worth.
As Alaskans, we are better than that and this repeal
will help us all acknowledge the [Developmental
Disabilities Shared Vision] law becoming reality. How
can you be an adult and say that you can judge others
based on your automatic perception of what someone can
do, rather than teach them how, just like you would
someone else, and have them demonstrate their
capabilities to soar to new heights.
Nobody is going to be left behind, but propelled
forward based on sole ability to treat them with human
dignity with this law being nonexistent. People often
define themselves to have purpose in life by doing
work that serves others in the community by what
they're contributing as the daily job. That matters.
To pay them accordingly for doing things that make a
difference to other Alaskans.
MS. LIEB-WILLIAMS thanked the committee for the opportunity to
testify and expressed optimism that it would do what is right
for a better future in Alaska.
1:56:16 PM
COREY GILMORE, Chair, Community Inclusion, Supports, and
Services Committee, provided invited testimony in support of SB
185. He related that wherever he goes he is judged by the way he
speaks, looks, and moves. In fact, when he goes to a restaurant
his staff has to remind the wait person that he can order for
himself. He said this is irritating to say the least but they
don't know any better. The statute that SB 185 removes was
written by people who also didn't know any better.
MR. GILMORE stated that Developmental Disabilities Shared Vision
says Alaskans who experience disabilities have the right to run
their own lives and to dream big enough to have not just a job
but a career. People who experience disabilities deserve to have
a career if that is what they want. He shared that if he were to
have kids, he would want them to know that he and others have
helped to make Alaska better than it was because they know
better.
1:59:18 PM
RIC NELSON, Chair, Self Advocacy and Leadership Committee,
Governor's Council on Disabilities and Special Education,
Department of Health and Social Services (DHSS), testified by
invitation in support of SB 185.
Mr. Nelson's assistant read the following:
This bill is so important because all people, no
matter their disabilities, 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 this statute reinforces the misconception that
individuals with disabilities are somehow a liability
for an employer. Keeping this statute sends a message
that Alaska is the land of opportunity, only if you
are not disabled.
2:01:42 PM
MYRANDA WALSO, Acting Executive Director, Governor's Council on
Disabilities and Special Education, Department of Health and
Social Services (DHSS), testified by invitation in support of SB
185. She explained that the council works with communities and
other state agencies to ensure that people with intellectual and
developmental disabilities and their families receive the
services they need. These individuals also participate in the
planning and design of the services.
MS. WALSO relayed that the [Fair Labor Standards Act of 1938]
established the federal minimum wage. The Act included the
Subminimum Wage Provision that allowed employers with a certain
certificate to employ individuals with a physical or mental
disability at less than the authorized minimum wage. The basis
for this was the notion that individuals with a disability had
less capacity for productivity. This is discriminatory and
requires disabled workers to be measured by a standard that
nondisabled workers are measured by. Employers in past
generations were able to exploit workers who were deemed lesser.
That outdated notion is out of step today and the statute that
SB 185 seeks to repeal is similarly out of step. It holds to the
same notion that people with disabilities do not have the same
standing in the job market as their nondisabled peers. There is
a new understanding through the Americans with Disabilities Act
(ADA), the Individuals with Disabilities Education Act (IDEA),
and the Workforce Innovation and Opportunity Act (WIOA). Alaska
has enacted the Employment First policy that requires that
individuals with disabilities receive vocational services to
help them become gainfully employed at or above the minimum
wage. As previously mentioned, the regulations enacting
subminimum wages for individuals with disabilities were
repealed, but the statute remains.
MS. WALSO emphasized that it is not acceptable for public
policies to remain in effect when they conflict with the basic
premise that people with disabilities are valuable members of
society and have a right to participate in all aspects of life,
which means gainful employment and the pursuit of economic self-
sufficiency.
2:04:51 PM
CHAIR COSTELLO opened public testimony on SB 185; finding none,
she closed public testimony.
2:05:10 PM
CHAIR COSTELLO held SB 185 in committee for future
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 41 Amendment I.2.pdf |
SL&C 3/14/2022 1:30:00 PM |
SB 41 |
| SB 190 Version I.pdf |
SL&C 3/14/2022 1:30:00 PM |
SB 190 |