03/29/1994 01:33 PM Senate L&C

 SENATOR KELLY announced  SB 340  (DAMAGES & ATTY FEES FOR UNPAID              
 WAGES) to be up for consideration.                                            
                                                                               
 SENATOR LINCOLN noted that "liquidated damages" was removed from              
 the title, but on page 2 of the CS, line 23, it appears again and             
 asked why.  MR. FINK explained that a draft of the original bill              
 deals with settlements that go beyond liquidated damages to                   
 attorney's fees, specifically, and the drafter said the title                 
 didn't fit.  Because section (e) of the CS goes beyond the scope of           
 simple liquidated damages and attorney's fees, the title can't be             
 that narrow, but the amendment he handed out does tighten it up               
 considerably, he said.                                                        
                                                                               
 PARRY GROVER, Anchorage, said he was an attorney in private                   
 practice and he had mainly represented management in all aspects of           
 employment law.  He said in many respects the Alaska wage and hour            
 act is more stringent than the federal law on which it was based.             
                                                                               
 SB 340 corrects some things that have crept into the Alaska law               
 over the years that really isolate it from the rest of the states             
 and has the effect of making it harsher than employers face in                
 other states.  In section 2, as the law presently stands, only the            
 prevailing plaintiff can recover full attorney's fees.  The result            
 is that if an employer is sued and the case is frivolous, they                
 don't recover their attorney's fees.  Under Alaska Civil Rule 82,             
 the prevailing party recovers at least partial attorney's fees.               
 There is no reason the wage and hour law should not have that same            
 provision, MR. GROVER said.                                                   
                                                                               
 Section 3 (d) brings into Alaska law a limited exception that has             
 been available under federal law for many years and is available in           
 most other states, for employers who can show good faith in trying            
 to follow the law.                                                            
                                                                               
 Mr. Grover said subsection (e) was requested by the Alaska                    
 Department of Labor.  It would restore to the Commissioner the                
 power to settle cases without requiring liquidated damages.                   
                                                                               
 Subsection (f) allows private settlements of these cases.                     
                                                                               
 SENATOR KELLY asked what organized labor thought of this bill.                
                                                                               
 MR. JOYCE, Aide to Representative Mulder, said organized labor has            
 "bought off" on this compromise, but they are not in support of               
 this bill.  It doesn't really affect their constituency.                      
                                                                               
 SENATOR LINCOLN asked if the statute of limitations was addressed             
 in this bill.  MR. JOYCE said it doesn't now.  He said he would               
 have to consult with the Department of Labor and legal staff.                 
                                                                               
 SENATOR KELLY said they would hold SB 340 until they get the House            
 version and see how it addresses that issue.