SENATE JUDICIARY COMMITTEE May 6, 1994 4:58 p.m. MEMBERS PRESENT Senator Robin Taylor, Chairman Senator Rick Halford, Vice-Chairman Senator George Jacko Senator Dave Donley Senator Suzanne Little MEMBERS ABSENT All Members Present COMMITTEE CALENDAR CS FOR HOUSE BILL NO. 459(JUD) am "An Act relating to settlement and payment of claims for minimum wage and overtime compensation claims and to liquidated damages and attorney fees for minimum wage and overtime compensation claims." PREVIOUS SENATE COMMITTEE ACTION HB 459 - No previous action to record. WITNESS REGISTER C. J. Zane Anchorage, AK POSITION STATEMENT: Testified in support of HB 459 Representative Eldon Mulder State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Supports HB 459 ACTION NARRATIVE TAPE 94-46, SIDE A Number 001 CHAIRMAN ROBIN TAYLOR called the Judiciary Committee meeting to order at 4:58 p.m. He then brought CSHB 459(JUD) am (DAMAGES & ATTY FEES FOR UNPAID WAGES) before the committee and noted there was a proposed Judiciary SCS for the committee's consideration. Number 005 SENATOR HALFORD moved the adoption of SCS CSHB 459(JUD). Hearing no objection, the motion carried. Number 008 C.J. ZANE, testifying in support of SCS CSHB 459(JUD), explained that the legislation is a wage and hour reform that does three major things: (1) It restores to the Department of Labor the authority to settle claims for overtime and wage disputes for less than the automatic doubling of liquidated damages in cases where that warrants. (2) It provides for private settlements whereby the employer/employee can enter into a private settlement so long as the employer discloses in writing to the employee that they have the right to take the settlement agreement to an attorney and/or the Department of Labor. It also gives them seven days to review that agreement, and after they sign the agreement, it gives them five days to rescind the agreement. (3) It provides for a good faith and reasonable belief defense against the doubling of liquidated damages only. Mr. Zane noted that the legislation has wide support although the trial attorneys have not taken a position on it. Number 028 REPRESENTATIVE ELDON MULDER said that SCS CSHB 459(JUD) is a consensus piece of legislation and extensive work was done with the Department of Labor to make sure that protections were built into the bill for both the employers and employees. He urged the committee's support for the legislation. Number 030 SENATOR JACKO asked if the legislation was good for attorneys or bad for attorneys. SENATOR TAYLOR said under current law the prevailing plaintiff is the only one that gets full attorneys fees. This legislation provides that either party who prevails gets full attorneys fees against the other. Number 048 SENATOR DONLEY said there has been a lot of concern expressed about the legislation, and although he thinks it is a good idea, he would like to find a way to mitigate some of the concerns about it. Number 062 SENATOR HALFORD suggested that a written opinion that the bill does not need a resolution for the title change should be obtained before the bill goes to the Senate floor. KEVIN SULLIVAN, committee aide, stated he had a verbal opinion that one was not needed, but that he would request a written one. Number 070 SENATOR DONLEY moved that on page 2, line 12, after the word "shows" insert "by clear and convincing evidence that it was in good faith." SENATOR HALFORD objected. The roll was taken with the following result: Senators Donley and Little voted "Yea" and Senators Jacko, Halford and Taylor voted "Nay." The Chairman stated the amendment failed. Number 100 SENATOR DONLEY moved that on page 2, line 17 or line 20, add the sentence "Ignorance of the law does not constitute good faith under this section." SENATOR JACKO objected. The roll was taken with the following result: Senators Donley, Little and Taylor voted "Yea" and Senators Jacko and Halford voted "Nay." The Chairman stated the amendment was adopted. SENATOR TAYLOR stated he would entertain a motion to move the bill from committee. Number 122 SENATOR HALFORD moved that SCS CSHB 459(JUD) be passed out of committee with individual recommendations. SENATOR JACKO objected. The roll was taken with the following result: Senators Halford, Little, Donley and Taylor voted "Yea" and Senator Jacko voted "Nay." The Chairman stated the motion carried. There being no further business to come before the committee, the meeting was adjourned at 5:08 p.m.