03/17/2003 03:15 PM House L&C
| Audio | Topic |
|---|
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 17, 2003
3:15 p.m.
MEMBERS PRESENT
Representative Tom Anderson, Chair
Representative Bob Lynn, Vice Chair
Representative Nancy Dahlstrom
Representative Carl Gatto
Representative Norman Rokeberg
Representative Harry Crawford
Representative David Guttenberg
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 54
"An Act exempting flight crew members of certain air carriers
from overtime pay requirements."
- MOVED SB 54 OUT OF COMMITTEE
HOUSE BILL NO. 111
"An Act extending the termination date of the Regulatory
Commission of Alaska; and providing for an effective date."
- BILL HEARING POSTPONED
PREVIOUS ACTION
BILL: SB 54
SHORT TITLE:OVERTIME PAY FOR AIRLINE EMPLOYEES
SPONSOR(S): SENATOR(S) OLSON
Jrn-Date Jrn-Page Action
01/31/03 0090 (S) READ THE FIRST TIME -
REFERRALS
01/31/03 0090 (S) TRA, L&C
02/18/03 (S) TRA AT 1:30 PM BUTROVICH 205
02/18/03 (S) Moved Out of Committee --
02/19/03 0220 (S) TRA RPT 5DP
02/19/03 0220 (S) DP: COWDERY, OLSON,
THERRIAULT,
02/19/03 0220 (S) WAGONER, LINCOLN
02/19/03 0220 (S) FN1: ZERO(LWF)
02/27/03 (S) L&C AT 1:30 PM BELTZ 211
02/27/03 (S) Moved Out of Committee
02/27/03 (S) MINUTE(L&C)
02/28/03 0294 (S) L&C RPT 5DP
02/28/03 0294 (S) DP: BUNDE, SEEKINS, DAVIS,
FRENCH,
02/28/03 0294 (S) STEVENS G
02/28/03 0294 (S) FN1: ZERO(LWF)
03/05/03 0355 (S) RULES TO CALENDAR 3/5/2003
03/05/03 0355 (S) READ THE SECOND TIME
03/05/03 0356 (S) ADVANCED TO THIRD READING
UNAN CONSENT
03/05/03 0356 (S) READ THE THIRD TIME SB 54
03/05/03 0356 (S) PASSED Y20 N-
03/05/03 0365 (S) TRANSMITTED TO (H)
03/05/03 0365 (S) VERSION: SB 54
03/07/03 0459 (H) READ THE FIRST TIME -
REFERRALS
03/07/03 0459 (H) L&C
03/07/03 0459 (H) REFERRED TO LABOR & COMMERCE
03/17/03 (H) L&C AT 3:15 PM CAPITOL 17
WITNESS REGISTER
SENATOR DONALD OLSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As sponsor, presented SB 54 and explained
how this bill will clarify that professional flight crews are
exempt from state overtime laws.
JIM WILSON, Chair
Legislative Committee
Alaska Air Carriers Association (AACA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 54, commenting
that exemption of flight crews from overtime is standard
nationwide.
TOM VANHOOMISSEN, Flight Deck Member
Era Aviation
Anchorage, Alaska
POSITION STATEMENT: In SB 54, supported the exemption of
professional flight crews, including flight attendants, from
overtime laws; noted that such an exemption gives employees more
flexible schedules and results in safer working conditions.
MARCIA DAVIS, General Counsel
Era Aviation
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on SB
54, explaining why loadmasters, who are not covered by the
Federal Aviation Administration regulations, should not be
included in the flight crew exemption.
PAUL SHOLTON
Northern Air Cargo
Anchorage, Alaska
POSITION STATEMENT: Testified against including loadmasters in
the flight crew exemption of SB 54, saying it would cause
accounting and administrative difficulties.
ACTION NARRATIVE
TAPE 03-22, SIDE A
Number 0001
CHAIR TOM ANDERSON called the House Labor and Commerce Standing
Committee meeting to order at 3:15 p.m. Representatives
Anderson, Lynn, Gatto, and Crawford were present at the call to
order. Representatives Dahlstrom, Rokeberg, and Guttenberg
arrived as the meeting was in progress.
SB 54-OVERTIME PAY FOR AIRLINE EMPLOYEES
Number 0032
CHAIR ANDERSON announced that the only order of business would
be SENATE BILL NO. 54, "An Act exempting flight crew members of
certain air carriers from overtime pay requirements."
Number 0057
SENATOR DONALD OLSON, Alaska State Legislature, sponsor of SB
54, said the bill provides certainty in the interpretation of
the existing federal and state wage and hour statutes as they
pertain to the payment of overtime in the air transportation
industry. Because of their unique working conditions, flight
crews have been considered professionals exempt from the
standard 8-hour workday, 40-hour workweek, and the associated
overtime pay. These conditions are contained in current Alaska
statutes. Along with the maximum flight hours set by the
Federal Aviation Administration (FAA), these exemptions at both
the state and federal level have allowed the industry to
structure flexible schedules for flight crew personnel.
SENATOR OLSON noted, however, that several Alaska court
decisions have raised questions about the interpretation of the
state wage and hour laws and the application of overtime
exemptions for flight crews. Senate Bill 54 explicitly adds
flight crews to the list of occupations in employment situations
that are exempt from Alaska's overtime wage and hour
requirements. The bill cites provisions under the federal
Railway Labor Act that governs air carriers in order to provide
consistency between federal and state applications of this
exemption. He urged the committee to pass SB 54.
Number 0224
JIM WILSON, Chair, Legislative Committee, Alaska Air Carriers
Association (AACA), testified that his group supports passage of
SB 54. He stated that the current practice among the majority
of association members is to accept the interpretation by the
Alaska Department of Labor and Workforce Development, Division
of Labor Standards and Safety, Wage and Hour section, that
flight crews are exempt from overtime rules. This approach to
calculating payroll is an industry standard used in all other
states. During an informal poll of the AACA, members commented
that flight crews from the various Alaska-based companies prefer
their exempt status primarily due to their employers' abilities
to create flexible work schedules.
MR. WILSON added that SB 54 brings stability to Alaska law as
applied to flight crews of air carriers that are governed by the
Railway Labor Act. Passage will ensure that the state's
executive branch interpretation of wage and hour overtime law is
the same as that applied by Alaska courts. The bill applies to
the flight crews of any air carrier in the state engaged in
interstate work, foreign work, or transportation of U.S. Postal
Service mail. The only flight crews unaffected are those who
perform work for air carriers that operate only in-state
charter/air taxi work.
Number 0403
REPRESENTATIVE GATTO asked whether this bill has any limits on
this overtime exemption.
MR. WILSON described several variations on a flight crew's
circumstances: a 10-hour day followed by a six-hour day; very
short days during the winter's brief hours of daylight; very
long hours in the summer, when the person is on duty but only
flying part of that time; and bad weather days when the crew is
sent home early. Mr. Wilson said this exemption from overtime
gives air carriers the flexibility to schedule flight crews. It
allows the crews to know that they are going to get paid for a
full day even though they didn't work the full day. He
explained he was a pilot for many years before opening his own
business [Coastal Helicopters, Inc].
Number 0511
MR. WILSON replied to questions from Representative Gatto about
whether the FAA regulates the exemption of overtime and which
employees are affected. Mr. Wilson said he can only fly a pilot
so many hours a day and have the person on duty so many hours a
day. He explained that applies to all members of the flight
crew. On larger airplanes, the flight crew consists of pilots,
flight attendants, co-pilots, and flight engineers. He
explained that ticket agents and custodians are not considered
flight crew and are not covered by this overtime exemption.
These workers can be scheduled for regular work hours because
they're not getting in an airplane and leaving the base of
operations.
Number 0631
REPRESENTATIVE GUTTENBERG asked how the Railway Labor Act
applies to large airlines.
MR. WILSON replied that most of the employees on large airlines
are covered because they do intrastate travel. Alaska, through
its courts, is the only state that has challenged the current
wage and hour rule. Other states are covered by the Railway
Labor Act.
Number 0678
CHAIR ANDERSON added that intrastate airlines such as Alaska
Airlines and Northwest Airlines are already covered by separate
labor agreements, so this bill does not affect them.
MR. WILSON, responding to a question from Representative
Guttenberg, explained that a baggage handler moving cargo is not
considered flight crew.
Number 0746
REPRESENTATIVE LYNN stated that in the Air Force, loadmasters
flew on cargo planes and played a critical role in loading the
cargo properly, doing the weight and balance calculations, and
keeping the cargo from shifting during flight. He asked whether
the equivalent position of a loadmaster working for cargo
companies would be covered by SB 54.
Number 0895
SENATOR OLSON said that any flight crews with loadmasters work
for carriers that are represented by unions. In the civilian
world, responsibility for load duties rests with the pilot in
command.
Number 0953
REPRESENTATIVE ROKEBERG agreed, saying it's not necessary to
include loadmasters in the bill because the cargo carriers in
the state are usually covered by collective bargaining
agreements.
SENATOR OLSON said the flight crews on larger air carriers
operating under FAR [Federal Aviation Regulations] Part 121 are
usually covered by a collective bargaining agreement. He said
he was not aware of any small carriers that had loadmaster
personnel with specialized training.
Number 1033
TOM VANHOOMISSEN, Flight Deck Member, Era Aviation, concurred
that there's no carrier in Alaska with a loadmaster except for
Lynden Air Cargo, which operates the [Hercules] C-130 [a four-
engine turboprop aircraft].
REPRESENTATIVE ROKEBERG commented that if Saturn Freight Systems
("Saturn") flew into the state hauling cargo, presumably the
crew and the loadmaster would be covered by the Alaska Wage and
Hour Act.
MR. WILSON said most of the aircraft used for air cargo in
Alaska are older and frequently have a third officer who assists
with loading and unloading.
CHAIR ANDERSON suggested that the key is whether the loadmaster
is traveling with the flight crew.
Number 1150
REPRESENTATIVE ROKEBERG said it would be worthwhile to research
this issue. He said Alyeska Pipeline Service Company has a
contract with Saturn to spray retardant materials on oil spills.
He said such planes might have a loadmaster or cargo master on
board.
REPRESENTATIVE LYNN confirmed his understanding that the pilot
in command is responsible for everything on the airplane.
REPRESENTATIVE ROKEBERG asked whether the Alaska Air Carriers
Association has looked at the Alaska Wage and Hour Act and tried
to work with the Department of Labor & Workforce Development to
develop voluntary flexible work hour plans under AS
23.10.060(d)(14)(A) and (B) [Payment for overtime].
Number 1220
MR. WILSON replied he has talked with staff at the Department of
Labor & Workforce Development numerous times, and they've always
said that flight crews fall under the professional category [of
AS 23.10.55 (9), Exemptions]. He said staff told him that the
best way to handle paying flight crews would be through an
exemption, which is the purpose of SB 54.
REPRESENTATIVE ROKEBERG explained that the voluntary flexible
work hour plan is allowed under the Alaska Wage and Hour Act,
and it seemed like it might be applicable in these situations.
In statute, the plans are limited to 10 hours a day, they have
to be pre-approved, and it takes considerable effort to get
those hours approved. He noted for the record that those plans
do not provide the flexibility that the air carriers need to do
their crew scheduling. Even though that provision is in the
law, it's not workable. He said he agrees with the response [by
the Department of Labor & Workforce Development staff that an
exemption in law is the best way to handle the issue].
CHAIR ANDERSON reiterated that the sponsor statement notes that
the court's interpretations of the exemption from overtime are
contradictory. This bill tightens that exemption so it cannot
be successfully challenged in court.
Number 1309
SENATOR OLSON confirmed that clarifying the overtime exemption
is the intent of the bill. He said there is a lingering
question about whether a load person on a big cargo carrier like
Saturn is covered by SB 54.
REPRESENTATIVE ROKEBERG said he's not sure that the question has
been answered. If large air carriers are covered by a
collective bargaining agreement, then the Alaska Wage and Hour
Act does not apply. If the loadmaster on a cargo plane is not
covered by a bargaining agreement, that person would have to be
paid overtime under state law.
SENATOR OLSON said larger carriers, such as Saturn and Southern
Air Transport have collective bargaining agreements that are
governed by the federal Railway Labor Act. But he said there's
still a question about the smaller [Federal Aviation Regulation
Part] 135 [single pilot] air taxi operators that may have
several nonunionized workers. He said that the federal mandate
under the Railway Labor Act applies in that case. Normally,
those pilots are only flying within the state
Number 1463
MARCIA DAVIS, General Counsel, Era Aviation, testified at the
request of Representative Crawford. She said SB 54 addresses
flight crews specifically, because they are professional
employees that have the protection of the FAA safety regulations
that backstop any potential abuse of the employee. These
employees are also governed by the national mediation board on
the federal side. She said including loadmasters with flight
crews mixes apples and oranges. The loadmasters are not
addressed by the FAA safety duty hour limitations, so they don't
have that safety backstop. They also have a different level of
training than pilots, flight engineers, and flight attendants.
She stated that she would be very concerned about loading them
into this bill. She said she also believes the Department of
Labor & Workforce Development would take exception to adding
loadmasters to SB 54. She said that if she represented a group
of loadmasters, she would want to keep them covered by the
Alaska Wage and Hour Act so they would have overtime protection.
Number 1560
MR. VANHOOMISSEN said that as an employee who enjoys exempt
status, he supports including flight attendants in the flight
crew. As a result of FAA regulations, the flight attendants are
no less professional and no less necessary than the crewmembers
in the cockpit. He also said that a flexible work schedule is
an extremely important benefit. Flexible schedules allow the
flight crews to have input into their schedules and some control
over their family lives. He said he thinks such flexibility
contributes to air safety in the long run.
MR. VANHOOMISSEN, responding to a question from Representative
Rokeberg, said none of his flight crews are covered by
collective bargaining agreements.
Number 1638
PAUL SHOLTON, Northern Air Cargo, testified he did not think the
loadmasters should be included in SB 54. He said a jet doesn't
take very long to get to Nome or Barrow, and these guys work on
the ramp in the meantime. He said it would be very confusing to
pay loadmasters differently while on the plane or on the ramp.
He said loadmasters only go on the jets, not on the slower DC-6
aircraft.
REPRESENTATIVE ROKEBERG asked Mr. Sholton whether he supports
SB 54.
MR. SHOLTON said he supports SB 54 because it recognizes flight
crewmembers as professionals and shows consideration for the
level of discretion they use, their expertise, and training.
Number 1757
SENATOR OLSON summarized the intent of SB 54. He said
loadmasters are not covered under the same federal regulations
as the rest of the flight crew as defined in this bill. As
pointed out by Ms. Davis with Era Aviation, the flight crews
have a regulatory backdrop to protect them. He asked the
committee to pass SB 54.
Number 1784
REPRESENTATIVE DAHLSTROM moved to report SB 54 out of committee
with individual recommendations and the accompanying zero fiscal
note. There being no objection, SB 54 was reported from the
House Labor and Commerce Standing Committee
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:40 p.m.
| Document Name | Date/Time | Subjects |
|---|