03/24/2016 01:30 PM Senate LABOR & COMMERCE

            SB 203-MEDI-VAC FLIGHT CREW OVERTIME PAY                                                                        
                                                                                                                                
2:07:54 PM                                                                                                                    
CHAIR COSTELLO  announced the consideration of  SB 203. She noted                                                               
this is the first hearing.                                                                                                      
                                                                                                                                
FORREST  WOLFE,  Staff,  Senator   Lesil  McGuire,  Alaska  State                                                               
Legislature Juneau,  Alaska, introduced SB  203 on behalf  of the                                                               
sponsor speaking to the following sponsor statement:                                                                            
                                                                                                                                
     Air  ambulance air  carriers have  become a  common and                                                                    
     essential life line for Alaskans.  The service is vital                                                                    
     to the  well-being of Alaskans  across our  vast state.                                                                    
     To  provide  this  life-saving  service,  flight  crews                                                                    
     regularly  included  medical  providers  to  administer                                                                    
     appropriate  medical care  during the  flight and  in a                                                                    
     flight  emergency  provide  the  same  assistance  that                                                                    
     flight attendants do on passenger service carriers.                                                                        
                                                                                                                                
     Current  law  exempts  air  ambulance  crews  from  the                                                                    
     overtime requirements  in Alaska. This is  in line with                                                                    
     the  federal Railway  Labor Act  which exempts  flights                                                                    
     crews from overtime requirements  because of the nature                                                                    
     of the air business. When  the state law was originally                                                                    
     passed it defined air crews  as pilot, co-pilot, flight                                                                    
     engineer,  and flight  attendants; however  today's air                                                                    
     crews  also include  these  medical  care providers  as                                                                    
     part  of their  regular crew.  Senate Bill  203 updates                                                                    
     current  statute   by  exempting  these   medical  care                                                                    
     providers from overtime  requirements, thus bringing it                                                                    
     in  line  with modern  practice  in  the air  ambulance                                                                    
     business.                                                                                                                  
                                                                                                                                
MR.  WOLFE  advised that  the  bill  states  that it  applies  to                                                               
contracts entered into on or  after the effective date. He listed                                                               
the  individuals  available  to   provide  testimony  and  answer                                                               
questions.                                                                                                                      
                                                                                                                                
CHAIR COSTELLO asked what practical concern the bill alleviates.                                                                
                                                                                                                                
MR. WOLFE  offered his understanding that  most medical personnel                                                               
on these  flight crews  are on a  salary-based payment  scale. SB
 will bring  personnel that are not on  a salary-based payment                                                               
scale in line with other crew members on these planes.                                                                          
                                                                                                                                
2:10:45 PM                                                                                                                    
GREY MITCHELL, Director, Division  of Labor Standards and Safety,                                                               
Department of  Labor and  Workforce Development  (DOLWD), offered                                                               
to  answer questions  related to  SB 203.  Speaking to  the issue                                                               
that was  just raised, he  said current  law is very  clear about                                                               
what  constitutes  members  of  a flight  crew,  and  it  doesn't                                                               
include medical personnel who might  be acting in the capacity of                                                               
a flight  attendant. There has  been some question  about whether                                                               
they would be considered under  the flight attendant category and                                                               
thus exempt  from overtime.  The plain reading  is that  they are                                                               
not  a  flight attendant.  The  bill  adds clarification  to  the                                                               
current statutory  definition of what constitutes  a flight crew,                                                               
which would eliminate  any question about whether or  not crew on                                                               
air ambulances and medivac  operations providing medical services                                                               
are exempt from overtime.                                                                                                       
                                                                                                                                
CHAIR COSTELLO  asked if the  fact that they haven't  been exempt                                                               
translates to higher costs for the consumer.                                                                                    
                                                                                                                                
MR. MITCHELL said he didn't know.                                                                                               
                                                                                                                                
CHAIR COSTELLO asked if these individuals  are on call and on the                                                               
clock waiting for a potential call.                                                                                             
                                                                                                                                
MR. MITCHELL  said he isn't  sure how the industry  handles that,                                                               
but if they  are required to remain  at or close to  the place of                                                               
employment while they're  on call, that time  would be considered                                                               
on  the  clock.  If  they  are  able  to  pursue  their  personal                                                               
interests  while on  call, they  wouldn't be  on the  clock until                                                               
they're called.                                                                                                                 
                                                                                                                                
SENATOR MEYER asked if air ambulance employees support the bill.                                                                
                                                                                                                                
MR. MITCHELL  replied the  division hasn't  had any  contact with                                                               
air ambulance employees and there  isn't a significant history of                                                               
wage claims.  His research  shows that one  company filed  a wage                                                               
claim in 2007 and another claim in 2013.                                                                                        
                                                                                                                                
SENATOR MEYER asked if SB  203 mirrors other states' treatment of                                                               
air ambulance employees.                                                                                                        
                                                                                                                                
MR. MITCHELL said he didn't know.                                                                                               
                                                                                                                                
CHAIR COSTELLO asked Mr. Webb to address the previous questions.                                                                
                                                                                                                                
2:15:03 PM                                                                                                                    
CHRIS WEBB,  Vice President, Air  Medical Resource  Group (AMRG),                                                               
said  his  company  operates  Alaska  Regional  Life  Flight  and                                                               
Guardian Flight in Alaska. They  are interested in SB 203 because                                                               
it  provides needed  clarification. He  related that  flight crew                                                               
members in  all states  are exempt because  of the  Railway Labor                                                               
Act.  However, Alaska's  definition of  a flight  crew puts  into                                                               
question whether or not those serving  as a flight crew on an air                                                               
medical  flight,  including  medical  attendees,  are  considered                                                               
flight crew.                                                                                                                    
                                                                                                                                
He noted  that members  of a  flight crew  are basically  on call                                                               
24/7 during  their 7-  or 14-day shift,  although there  are some                                                               
restrictions to  proximity. In most  cases they are paid  a daily                                                               
rate  whether  they fly  or  not.  He  opined  that it  would  be                                                               
difficult  to create  a pay  structure that  takes overtime  into                                                               
account; what's  more important  is to  make sure  the pay  is in                                                               
line with the industry nationwide.                                                                                              
                                                                                                                                
CHAIR COSTELLO summarized  that flight crews on  a medical flight                                                               
currently  are being  treated as  if  they are  not eligible  for                                                               
overtime. SB 203 puts the current practice into law.                                                                            
                                                                                                                                
MR.  WEBB responded  saying that  when  this issue  came up,  his                                                               
company adjusted  the pay structure  for crews on an  air medical                                                               
flight. His  preference is for the  pay structure to be  the same                                                               
as for all other crew members.                                                                                                  
                                                                                                                                
CHAIR COSTELLO  asked if  this will  result in  less cost  to the                                                               
consumer.                                                                                                                       
                                                                                                                                
MR.  WEBB replied  it  should be  a wash  to  the consumer.  This                                                               
clarification puts the entire crew  on the same pay structure, as                                                               
is the case in other states.                                                                                                    
                                                                                                                                
2:20:17 PM                                                                                                                    
CHAIR COSTELLO  asked Mr.  Mitchell if  the administration  has a                                                               
position on the bill.                                                                                                           
                                                                                                                                
MR. MITCHELL replied the department is neutral on SB 203.                                                                       
                                                                                                                                
CHAIR COSTELLO found no questions or public testimony.                                                                          
                                                                                                                                
2:20:51 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:20:56 PM                                                                                                                    
CHAIR COSTELLO  reconvened the  meeting, closed  public testimony                                                               
on SB 203, and held the bill in committee.