HB 255: "An Act amending the Alaska Wage and Hour Act as it relates to flexible work hour plans, the provision of training wages, and the definitions of certain terms; and repealing the exemption in the Act from the payment of minimum wages for learners."

00 HOUSE BILL NO. 255 01 "An Act amending the Alaska Wage and Hour Act as it relates to flexible work hour 02 plans, the provision of training wages, and the definitions of certain terms; and 03 repealing the exemption in the Act from the payment of minimum wages for learners." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 23.10.055(9) is amended to read: 06 (9) an individual employed in a bona fide executive, administrative, or 07 professional capacity or in the capacity of an outside salesman or a salesman who is 08 employed on a straight commission basis; for purposes of this paragraph, 09 "executive capacity," "administrative capacity," and "professional capacity" 10 have the meanings given in the federal regulations defining those terms as used in 11 sec. 13(a)(1) of the Fair Labor Standards Act of 1938, as amended; 12 * Sec. 2. AS 23.10.060(a) is amended to read: 13 (a) An employer who employs employees engaged in commerce or other 14 business [,] or in the production of goods or materials in the state may not employ an

01 employee for a workweek longer than 40 hours or for more than eight hours a day. 02 This section does not apply to the employment of a person acting in a supervisory 03 capacity. In this subsection, "supervisory capacity" means the primary duties 04 performed by an employee who is employed solely for the purpose of regularly 05 assigning and directing the activities of other employees and is responsible for 06 results of the work performed. 07 * Sec. 3. AS 23.10.060(d) is amended to read: 08 (d) This section does not apply with respect to 09 (1) an employee employed by an employer employing less than four 10 employees in the regular course of business, as "regular course of business" is defined 11 by regulations of the commissioner; 12 (2) an employee employed in handling, packing, storing, pasteurizing, 13 drying, preparing in their raw or natural state, or canning agricultural or horticultural 14 commodities for market, or in making cheese or butter or other dairy products; 15 (3) an employee of an employer engaged in small mining operations 16 where not more than 12 employees are employed if the employee is employed not in 17 excess of 12 hours a day or 56 hours a week during a period or periods of not more 18 than 14 workweeks in the aggregate in a calendar year during the mining season, as 19 the season is defined by the commissioner; 20 (4) an employee engaged in agriculture; 21 (5) an employee employed in connection with the publication of a 22 weekly, semiweekly, or daily newspaper with a circulation of less than 1,000; 23 (6) a switchboard operator employed in a public telephone exchange 24 that has fewer than 750 stations; 25 (7) an employee in an otherwise exempted employment or proprietor 26 in a retail or service establishment engaged in handling telegraphic, telephone, or radio 27 messages for the public under an agency or contract arrangement with a telegraph or 28 communications company where the telegraph message or communications revenue of 29 the agency does not exceed $500 a month; 30 (8) an employee employed as a seaman; 31 (9) an employee employed in planting or tending trees, cruising, or

01 surveying, or bucking, or felling timber, or in preparing or transporting logs or other 02 forestry products to the mill, processing plant, railroad, or other transportation 03 terminal if the number of employees employed by the employer in the forestry or 04 lumbering operations does not exceed 12; 05 (10) an individual employed as an outside buyer of poultry, eggs, 06 cream, or milk in their raw or natural state; 07 (11) casual employees as may be liberally defined by regulations of the 08 commissioner; 09 (12) an employee of a hospital whose employment includes the 10 provision of medical services; 11 (13) work performed by an employee under a flexible work hour plan 12 if the plan is included as part of a collective bargaining agreement; 13 (14) work performed by an employee under a voluntary flexible work 14 hour plan if 15 [(A)] the employee and the employer have signed a written 16 agreement [AND THE WRITTEN AGREEMENT HAS BEEN FILED WITH 17 THE DEPARTMENT; AND 18 (B) THE DEPARTMENT HAS ISSUED A CERTIFICATE 19 APPROVING THE PLAN THAT STATES THE WORK IS FOR 40 HOURS 20 A WEEK AND NOT MORE THAN 10 HOURS A DAY; FOR WORK OVER 21 40 HOURS A WEEK OR 10 HOURS A DAY UNDER A FLEXIBLE WORK 22 HOUR PLAN NOT INCLUDED AS PART OF A COLLECTIVE 23 BARGAINING AGREEMENT, COMPENSATION AT THE RATE OF ONE 24 AND ONE-HALF TIMES THE REGULAR RATE OF PAY SHALL BE 25 PAID FOR THE OVERTIME]; 26 (15) an individual employed as a line haul truck driver for a trip that 27 exceeds 100 road miles one way if the compensation system under which the truck 28 driver is paid includes overtime pay for work in excess of 40 hours a week or for more 29 than eight hours a day and the compensation system requires a rate of pay comparable 30 to the rate of pay required by this section; 31 (16) an individual employed as a community health aide by a local or

01 regional health organization as those terms are defined in AS 18.28.100; 02 (17) work performed by a mechanic primarily engaged in the servicing 03 of automobiles, light trucks, and motor homes if the mechanic 04 (A) is employed as a flat-rate mechanic by a nonmanufacturing 05 establishment primarily engaged in the business of selling or servicing motor 06 vehicles; 07 (B) has signed a written agreement with the employer that 08 specifies the mechanic's flat hourly rate of pay and the automotive manual or 09 manuals on which the flat rate is to be based; 10 (C) is compensated for all hours worked in any capacity for 11 that employer up to and including eight hours a day and 40 hours a week at an 12 hourly rate that is not less than the greater of 13 (i) 75 percent of the flat hourly rate of pay agreed upon 14 by the employer and employee under (B) of this paragraph; or 15 (ii) twice the state minimum wage; and 16 (D) is compensated for all hours worked in any capacity for 17 that employer in excess of eight hours a day or 40 hours a week at one and 18 one-half times the rate described in (C) of this paragraph; 19 (18) work performed by an employee under a voluntary written 20 agreement addressing the trading of work shifts among employees if 21 (A) the employee is employed by an air carrier subject to 22 subchapter II of the Railway Labor Act (45 U.S.C. 181-188), including 23 employment as a customer service representative; 24 (B) the trading agreement is not a flexible work hour plan 25 entered into under (13) or (14) of this subsection; 26 (C) the trading agreement is filed with the employee's 27 employer; and 28 (D) the trading agreement states that the employee is not 29 entitled to receive overtime for any hours worked by the employee when the 30 employee voluntarily works those hours under a shift trading practice under 31 which the employee has the opportunity, in the same or other work weeks, to

01 reduce hours worked by voluntarily offering a shift for trade or reassignment. 02 * Sec. 4. AS 23.10 is amended by adding a new section to read: 03 Sec. 23.10.072. Training wages. (a) Notwithstanding AS 23.10.065, an 04 employer may pay a newly hired employee who is less than 20 years of age a wage 05 that is not less than $5.15 an hour during the first 90 consecutive calendar days after 06 the employee is initially employed by the employer. An employer may not take an 07 action to displace an employee, including partial displacements such as reduction in 08 hours, wages, or employment benefits, for purposes of hiring individuals at the wage 09 authorized in this subsection. 10 (b) The wage authorized by (a) of this section does not apply once the 11 employee has attained 20 years of age. 12 * Sec. 5. AS 23.10.070(3) is repealed.