Juneau -- The Alaska House of Representatives Tuesday passed House Bill 201, which would clarify a recent court decision ruling that overtime hours are to be calculated differently from the historically accepted method.

Representative Norman Rokeberg (R-Anchorage), Chairman of the House Labor and Commerce Committee, which sponsored HB 201, said that to understand the effects of the Superior Court decision (Hallam v. Holland America), the case of an employee who works 43 hours in a week serves as an example. "If the employee works eleven hours on Monday and eight hours each on Tuesday, Wednesday, Thursday, and Friday, the employee would be eligible for three hours overtime for exceeding eight hours on Monday, plus another three hours overtime for exceeding forty hours per week on Friday," Rokeberg said. "Such a system as the court's interpretation is referred to as 'pyramiding' and is contrary both to the interpretation historically used by the Alaska Department of Labor and to the understanding of Alaska's employers.

"HB 201 clarifies that, under the above example, the employee would only receive pay for the actual three hours of overtime worked," Rokeberg said. "This would clarify the law and its interpretation for all involved, including the courts. Failure to correct the court's interpretation would have significant effects on all Alaska businesses."

Rokeberg noted that the legislation contains retroactive provisions to maintain the statis quo and avoid any confusion until the bill takes effect.

House Bill 201 passed 39-1 and now moves to the Senate.

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
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