CS FOR SENATE BILL NO. 193(L&C)                                                                                                 
"An Act relating to the payment of wages and claims                                                                             
for the payment of wages."                                                                                                      
                                                                                                                                
                                                                                                                                
Senator Wilken made a motion to adopt the Committee                                                                             
Substitute for SB 193, Version 1-LS1263\H.                                                                                      
                                                                                                                                
Co-Chair Parnell objected for explanation purposes.                                                                             
                                                                                                                                
Senator Pearce explained that on page 1, line 10, the word                                                                      
"penalties" was deleted and a new Section 3 (f) was added,                                                                      
which reads: "In an action brought for unpaid overtime                                                                          
under AS 23.10.060 that results in an award of liquidated                                                                       
damages under AS 23.10.110, the provisions of (d) of this                                                                       
section do not apply unless the action was brought by the                                                                       
department under (e) of this section."                                                                                          
                                                                                                                                
JAY SEYMOUR, Attorney, Perkins Coie, testified via                                                                              
teleconference from Anchorage.  He stated that "Version H"                                                                      
as outlined was a first good step in bringing some                                                                              
reasonableness to wage and hour law.  He added that this                                                                        
version takes out the harsh double penalties that can be                                                                        
assessed under current law AS 23.05.40.                                                                                         
                                                                                                                                
Co-Chair Torgerson hearing no objection ADOPTED SB 193,                                                                         
Version 1-LS1263\H.                                                                                                             
                                                                                                                                
Amendment #1: This amendment inserts a new bill section to                                                                      
read as follows:                                                                                                                
                                                                                                                                
 Sec.3.  AS 23.05.140(b) is amended to read:                                                                                    
                                                                                                                                
 (b) If the employment is terminated, [REGARDLESS                                                                               
OF THE CAUSE OF TERMINATION,] all wages, salaries, or                                                                           
other compensation for labor or services become due                                                                             
immediately and shall be paid within the time required                                                                          
by this subsection [THREE WORKING DAYS AFTER THE                                                                                
TERMINATION] at the place where the employee is                                                                                 
usually paid or at a location agreed upon by the                                                                                
employer and employee.  If the employment is                                                                                    
terminated by the employer, regardless of the cause                                                                             
for the termination, payment is due within three                                                                                
working days after the termination.  If the employment                                                                          
is terminated by the employee, payment is due at the                                                                            
next regular pay day that is at least three days after                                                                          
the employer received notice of the employee's                                                                                  
termination of services.                                                                                                        
                                                                                                                                
Sec. 4. AS 23.05.140(d) is amended to read:                                                                                     
                                                                                                                                
(f) If an employer violates (b) of this section                                                                                 
by failing to pay within the time required by that                                                                              
subsection [THREE WORKING DAYS OF TERMINATION], the                                                                             
employer may be required to pay the employee a penalty                                                                          
in the amount of the employee's regular wage, salary,                                                                           
or other compensation from the time of demand to the                                                                            
time of payment, or for 90 working days, whichever is                                                                           
the lesser amount."                                                                                                             
                                                                                                                                
 Page 2, line 26:                                                                                                               
                                                                                                                                
 Delete "within three working days of termination"                                                                              
Insert "within the time required by (b) of this                                                                                 
section"                                                                                                                        
                                                                                                                                
                                                                                                                                
Senator Wilken made a motion to adopt Amendment #1.  He                                                                         
explained that it sets forth that if someone quits a job                                                                        
voluntarily, the payroll is not due until the next                                                                              
scheduled payroll run.                                                                                                          
                                                                                                                                
Senator Adams asked if under current law, an individual                                                                         
would be paid within three working days of termination.  He                                                                     
wondered if this amendment would put an undue hardship on                                                                       
individuals that might be relocating to the lower 48, or to                                                                     
another area statewide.                                                                                                         
                                                                                                                                
Senator Wilken responded that he did not think so and added                                                                     
that these funds would essentially be considered money in                                                                       
the bank, regardless of whether someone terminated his or                                                                       
her employment.                                                                                                                 
                                                                                                                                
Senator Adams OBJECTED to Amendment #1.  A roll call vote                                                                       
was taken.                                                                                                                      
                                                                                                                                
IN FAVOR: Senator Phillips, Senator Leman, Senator Wilken,                                                                      
Senator P. Kelly, Senator Green, Co-Chair Parnell, Co-Chair                                                                     
Torgerson.                                                                                                                      
                                                                                                                                
OPPOSED: Senator Adams.                                                                                                         
                                                                                                                                
The MOTION PASSED: (7-1)                                                                                                        
                                                                                                                                
Chair Parnell made a motion to move the Finance version of                                                                      
SB 193, Version 1-LS1263\H as amended from the Committee                                                                        
with individual recommendations and attached zero fiscal                                                                        
note from Labor and Workforce Development.                                                                                      
                                                                                                                                
Co-Chair Torgerson hearing no objection passed SB 193 FROM                                                                      
THE COMMITTEE.