ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                          May 6, 2024                                                                                           
                           1:32 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Jesse Bjorkman, Chair                                                                                                   
Senator Elvi Gray-Jackson                                                                                                       
Senator Forrest Dunbar                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Click Bishop, Vice Chair                                                                                                
Senator Kelly Merrick                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 88(L&C)                                                                                 
"An Act relating to work quotas for employees at warehouse                                                                      
distribution centers; and providing for an effective date."                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HB 203-PAYMENT OF WAGES; PAYROLL CARD ACCOUNT                                                                                   
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  88                                                                                                                  
SHORT TITLE: WAREHOUSE WORK QUOTAS                                                                                              
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER                                                                                          
                                                                                                                                
02/27/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/27/23       (H)       L&C, JUD                                                                                               
03/29/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/29/23       (H)       Heard & Held                                                                                           
03/29/23       (H)       MINUTE(L&C)                                                                                            
04/10/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/10/23       (H)       <Bill Hearing Canceled>                                                                                
04/12/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/12/23       (H)       Heard & Held                                                                                           
04/12/23       (H)       MINUTE(L&C)                                                                                            
04/14/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/14/23       (H)       Heard & Held                                                                                           
04/14/23       (H)       MINUTE(L&C)                                                                                            
04/17/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/17/23       (H)       Moved CSHB 88(L&C) Out of Committee                                                                    
04/17/23       (H)       MINUTE(L&C)                                                                                            
04/19/23       (H)       L&C RPT CS(L&C) 3DP 4NR                                                                                
04/19/23       (H)       DP: FIELDS, CARRICK, SUMNER                                                                            
04/19/23       (H)       NR: SADDLER, PRAX, WRIGHT, RUFFRIDGE                                                                   
01/29/24       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
01/29/24       (H)       Heard & Held                                                                                           
01/29/24       (H)       MINUTE(JUD)                                                                                            
01/31/24       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
01/31/24       (H)       Moved CSHB 88(L&C) Out of Committee                                                                    
01/31/24       (H)       MINUTE(JUD)                                                                                            
02/02/24       (H)       JUD RPT CS(L&C) 6DP 1NR                                                                                
02/02/24       (H)       DP: C.JOHNSON, GRAY, CARPENTER, SUMNER,                                                                
                         GROH, VANCE                                                                                            
02/02/24       (H)       NR: ALLARD                                                                                             
04/26/24       (H)       TRANSMITTED TO (S)                                                                                     
04/26/24       (H)       VERSION: CSHB 88(L&C)                                                                                  
04/29/24       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/29/24       (S)       L&C                                                                                                    
05/06/24       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 203                                                                                                                  
SHORT TITLE: PAYMENT OF WAGES; PAYROLL CARD ACCOUNT                                                                             
SPONSOR(s): REPRESENTATIVE(s) SUMNER                                                                                            
                                                                                                                                
05/16/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/16/23       (H)       L&C                                                                                                    
01/26/24       (H)       BILL REPRINTED                                                                                         
02/09/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/09/24       (H)       <Bill Hearing Canceled>                                                                                
02/16/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/23/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/23/24       (H)       Scheduled but Not Heard                                                                                
02/28/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/28/24       (H)       -- Invited & Public Testimony --                                                                       
03/01/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/01/24       (H)       Scheduled but Not Heard                                                                                
03/04/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/04/24       (H)       Heard & Held                                                                                           
03/04/24       (H)       MINUTE(L&C)                                                                                            
03/11/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/11/24       (H)       Heard & Held                                                                                           
03/11/24       (H)       MINUTE(L&C)                                                                                            
03/18/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/18/24       (H)       RESIDENTIAL BUILDING CODE                                                                              
03/20/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/20/24       (H)       Moved HB 203 Out of Committee                                                                          
03/20/24       (H)       MINUTE(L&C)                                                                                            
03/21/24       (H)       L&C RPT 4DP 3NR                                                                                        
03/21/24       (H)       DP: RUFFRIDGE, PRAX, SADDLER, SUMNER                                                                   
03/21/24       (H)       NR: FIELDS, CARRICK, WRIGHT                                                                            
05/01/24       (H)       TRANSMITTED TO (S)                                                                                     
05/01/24       (H)       VERSION: HB 203 AM                                                                                     
05/03/24       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/03/24       (S)       L&C                                                                                                    
05/06/24       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RYAN MCKEE, Staff                                                                                                               
Representative George Rauscher                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced HB 88 on behalf of the sponsor.                                                                
                                                                                                                                
PATRICK FITZGERALD, Political Coordinator                                                                                       
Teamsters Local 959                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Gave a presentation on HB 88.                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:38 PM                                                                                                                    
CHAIR  JESSE  BJORKMAN  called  the  Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 1:32 p.m.  Present at the                                                               
call  to  order  were  Senators Gray-Jackson,  Dunbar  and  Chair                                                               
Bjorkman.                                                                                                                       
                                                                                                                                
He announced that  the agenda would consist of HB  88 and that HB                                                               
203 had been removed from the agenda.                                                                                           
                                                                                                                                
                  HB  88-WAREHOUSE WORK QUOTAS                                                                              
                                                                                                                                
1:33:41 PM                                                                                                                    
CHAIR BJORKMAN announced  the consideration of CS  FOR HOUSE BILL                                                               
NO.  88(L&C) "An  Act relating  to work  quotas for  employees at                                                               
warehouse distribution  centers; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
1:34:10 PM                                                                                                                    
RYAN MCKEE,  Staff, Representative George Rauscher,  Alaska State                                                               
Legislature, Juneau,  Alaska, introduced HB  88 on behalf  of the                                                               
sponsor, reading from the following statement:                                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                         House Bill 88                                                                                        
                       Sponsor Statement                                                                                        
                                                                                                                                
     House  Bill  88  Warehouse  Worker  Protection  Act  is                                                                    
     designed  to  provide  transparency for  warehouse  and                                                                    
     logistic workers when  they agree to a  pay scale based                                                                    
     on a quota  or production goal. HB 88  is also designed                                                                    
     to    provide   protections    for   workers    against                                                                    
     counterproductive methods  employers miss the  mark on,                                                                    
     to speed up production and save on costs.                                                                                  
                                                                                                                                
     With  over 90  [percent]  of food  coming from  outside                                                                    
     Alaska,  these workers  are the  lifeline  to keep  the                                                                    
     state operational. Warehouse  and logistic workers face                                                                    
     many  challenges in  the workplace,  HB  88 will  allow                                                                    
     workers to focus on delivering  goods and maintaining a                                                                    
     healthy supply chain while also  ensuring they are able                                                                    
     to  work in  a safe  environment where  employers don't                                                                    
     encourage speed over safety.                                                                                               
                                                                                                                                
1:35:07 PM                                                                                                                    
MR. MCKEE noted two changes in the bill:                                                                                        
                                                                                                                                
   • Section 23.10.700, page 1, line 9: changed work conditions                                                                 
     from 100 to 200 employees.                                                                                                 
                                                                                                                                
   • Section 23.10.725, page 3, line 4: after "center" the words                                                                
     "who is subject to a quota" were added.                                                                                    
                                                                                                                                
1:35:48 PM                                                                                                                    
SENATOR GRAY-JACKSON  repeated a question  that was asked  in the                                                               
House  Judiciary  Standing Committee  on  January  31, 2024.  She                                                               
asked how many warehouses in Alaska would be affected by HB 88.                                                                 
                                                                                                                                
1:36:08 PM                                                                                                                    
MR. MCKEE answered zero.                                                                                                        
                                                                                                                                
1:36:20 PM                                                                                                                    
SENATOR DUNBAR  recalled working  at a cannery  in his  youth. He                                                               
said the crew worked 15-hour days,  seven days a week and he said                                                               
there were a  set number of mandated breaks. He  asked whether HB                                                               
88  provided  for  supplemental   breaks  or  if  the  warehouses                                                               
addressed by the bill were exempt from those mandated breaks.                                                                   
                                                                                                                                
1:37:18 PM                                                                                                                    
MR. MCKEE answered that HB 88  is directed at employers that want                                                               
to increase  production in the  same amount  of work time.  HB 88                                                               
would  establish  parameters to  ensure  employee  safety in  the                                                               
event that employers speed up the pace of production.                                                                           
                                                                                                                                
1:38:27 PM                                                                                                                    
PATRICK FITZGERALD,  Political Coordinator, Teamsters  Local 959,                                                               
Anchorage, Alaska,  said House Bill  88 would add to  the statute                                                               
two protections  for warehouse and logistics  workers and prevent                                                               
predatory  practices in  the future.  First, HB  88 will  provide                                                               
transparency  for  quota-based  pay positions  in  warehouses  by                                                               
allowing  the employee  access to  quota rate  from the  start of                                                               
their employment  and any changes  that are made as  the employee                                                               
progresses.  This will  allow workers  to be  fully aware  of the                                                               
expectations set  by their employers  and how to best  meet those                                                               
goals.                                                                                                                          
                                                                                                                                
MR. FITZGERALD said HB 88  also creates a mechanism for employees                                                               
to request  the work speed data  that their employer is  using to                                                               
track their progress  and speed. Employees having  access to this                                                               
data  will bring  solutions to  a work  environment that  has had                                                               
problems with retention because of quota based operations.                                                                      
                                                                                                                                
MR. FITZGERALD  said HB  88 would  provide protections  that have                                                               
been  proven to  reduce workplace  accidents in  quota-based jobs                                                               
such  as allowing  for time  for restroom  breaks and  reasonable                                                               
workloads to prevent high turnover rate.                                                                                        
                                                                                                                                
MR. FITZGERALD said  the idea of HB 88 is  to protect workers who                                                               
maintain  and operate  warehouses that  store 95  percent of  the                                                               
food  that   comes  into  Alaska,  conducts   logistics  for  all                                                               
construction  materials that  come into  the state  to build  our                                                               
future, and work to ensure those  in rural parts of the state are                                                               
able to  stay connected  to a strong  consistent supply  chain of                                                               
food, medicine  and all  other goods. He  urged the  committee to                                                               
protect the warehouse workers of Alaska and pass HB 88.                                                                         
                                                                                                                                
1:41:06 PM                                                                                                                    
MR. MCKEE expressed appreciation to  the committee for hearing HB                                                               
88.                                                                                                                             
                                                                                                                                
1:41:16 PM                                                                                                                    
CHAIR BJORKMAN held HB 88 in committee.                                                                                         
                                                                                                                                
1:41:57 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Bjorkman adjourned the Senate Labor and Commerce Standing                                                                 
Committee meeting at 1:41 p.m.