Bill Summary – FastDemocracy

State of Alaska
                                                          Fiscal Note
                                                                                               Bill Version:                    SB 153
 2023 Legislative Session
                                                                                               Fiscal Note Number:              1
                                                                                               (S) Publish Date:                5/16/2023
 Identifier:        0771-DOLWD-WH-05-15-23                                      Department:        Department of Labor and Workforce Development
 Title:             OVERTIME PAY EXEMPTION                                      Appropriation: Labor Standards and Safety
 Sponsor:           RLS BY REQUEST OF THE GOVERNOR                              Allocation:        Wage and Hour Administration
 Requester: Governor                                                            OMB Component Number:               345
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                 (Thousands of Dollars)
                                                 Included in
                                    FY2024       Governor's
                                Appropriation      FY2024                                             Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2024        FY 2024       FY 2025                       FY 2026           FY 2027            FY 2028         FY 2029
 Personal Services                       206.5                        206.5                        116.7             116.7              116.7           116.7
 Travel
 Services                                 22.0                         15.5                            9.2                9.2              9.2              9.2
 Commodities
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                         228.5            0.0         222.0                         125.9             125.9             125.9             125.9
 Fund Source (Operating Only)
 1005 GF/Prgm (DGF)                           228.5                              222.0              125.9             125.9             125.9             125.9
 Total                                        228.5                0.0           222.0              125.9             125.9             125.9             125.9
 Positions
 Full-time                                      1.0                                    1.0             1.0                1.0              1.0              1.0
 Part-time
 Temporary                                      1.0                                    1.0
 Change in Revenues
 None
 Total                                          0.0                0.0                 0.0             0.0                0.0              0.0              0.0
 Estimated SUPPLEMENTAL (FY2023) cost:                                    0.0                (separate supplemental appropriation required)
 Estimated CAPITAL (FY2024) cost:                                         0.0                (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                  Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                  12/31/23
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version
 Prepared By:             Tanya Keith, Director                                                                      Phone:         (907)269-4920
 Division:                Labor Standards and Safety                                                                 Date:          05/15/2023 08:30 AM
 Approved By:             Dan DeBartolo, Director                                                                    Date:          05/15/23
 Agency:                  DOLWD Administrative Services Division
Printed 5/16/2023                                                        Page 1 of 2                                                         Control Code: glbbG
                                                                                                                 SB 153 - Fiscal Note 1
                                                 FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                  BILL NO. LL 0177
2023 LEGISLATIVE SESSION
Analysis
   State of Alaska overtime pay requirements begin either after eight working hours in a day or after 40 cumulative hours in a
   work week. Currently, AS 23.10.060(d)(20) allows for employers to get an exemption from the daily overtime requirement
   by getting a voluntary flexible work plan approved by the department. It does not allow for working more than 10 hours a
   day. Effective under AS 01.10.060(d)(20), this legislation would create a daily overtime exemption for certain employers,
   operating facilities licensed under AS 47.32.010(b)(010)(b)(1), which includes ambulatory surgical centers, rural health
   clinics, freestanding birth centers and more. This legislation would provide a special voluntary flexible work hour plan for
   these employers that would allow 12 hour shifts for all employees.
   This legislation would require the creation of a separate regulation package in FY24 to address administration and
   provision of the plan, as well as ongoing informational printing and IT costs.
   In FY24 Wage and Hour would need to develop policies and procedures, create databases, create and publish forms, and
   train staff. In FY24 and FY25, while getting the program up and running the additional administrative work would require
   the temporary hire of a Administrative Assistant 2.
   Wage and Hour will also need an additional Investigator 2 to handle the additional workload this legislation will create.
   These flex plans will require additional research by Wage and Hour staff, taking longer to process. Staff will need to ensure
   that the facility where work is being performed meets the licensing requirements of the legislation. For example a large
   health organization employer could have many facilities, or departments; some may qualify and others will not. This will
   require staff to ensure the employee is working in a facility where 12 hour shifts is allowable before approving the plan.
   Inevitably, the duel flex plan will create confusion, and Wage and Hour staff will have to spend time explaining to
   employers and employees who have submitted plans for 12 hour shifts, why they do not qualify. We estimate 10‐15 of
   these flex plans a week, for a total of 520‐780 additional per year. From that, we estimate total new investigations on the
   low side at 5%, which is 26‐39 investigations a year.
(Revised 08/26/2022 OMB/LFD)                                                                                       Page 2 of 2
0771-DOLWD-WH-05-15-23                                         Page 2 of 2                                               Control Code: glbbG
Statutes affected: 
SB0153A, AM SB 153, introduced 05/16/2023: 23.10.060