The bill introduces a new section, AS 39.20.355, which establishes a flexible time credit system for classified employees in the executive branch of the state government who are not eligible for overtime compensation. This flexible time credit allows employees to accrue paid time off for hours worked beyond their standard workweek, credited in quarter-hour increments. However, the credit has no cash value and is forfeited upon the employee's separation from state service. Additionally, it does not accrue for time covered by specific pay premiums or plans that require employees to remain on-site for extended periods.

Furthermore, the bill amends AS 39.25.150 to include a new provision (27) that mandates the establishment of methods and procedures for managing flexible time credit for these employees. The new flexible time credit policy can be further defined by employer policies or collective bargaining agreements, which may include additional terms regarding accrual and usage, as well as dispute resolution methods. The provisions of this bill will apply to contracts entered into on or after its effective date.

Statutes affected:
HB0130A, AM HB 130, introduced 03/10/2025: 39.25.150, 39.25.170, 39.25.195, 39.25.200, 39.25.159