Sponsor Statement for SCHB 68 (L&C)

HB 68 would change the current employee voluntary flexible work hour law. Under current law, an employer must pay an employee one and one half times the regular rate of pay for any hours worked in excess of 40 hours a week or 8 hours a day. However, the law also provides that the Department of Labor may approve a written agreement between an employer and employee, increasing the regular pay hours to 10 per day, provided that no more than 40 per week are worked, when the employee is performing under a voluntary flexible work hour plan.

This bill would permit the Department of Labor to approve a written plan between the employer and employee increasing the regular pay hours to 12 per day and not more than 40 per week.

The purpose of the purposed change is to benefit the surface metal mining industry, mine employees and to provide a favorable climate for those mining companies considering investing in the State.

Mine employees would benefit from the increase to 12 hours in their daily shifts because they would work the same number of hours at increased pay in 14 days as it currently takes 21 days to work. This would allow then more time with their families, greater pay due to increased number of overtime hours each month and higher morale and job satisfaction due to longer periods of off-work time.

The mine companies would benefit from lower absenteeism, increased mineral production and operational continuity. This, in turn, improves the company's competitive position in the global metals market and reduces the mines economic exposure to the fluctuations in metal prices, protecting the projected life-span of the mine.

California, Nevada and Alaska are the only three states with the 8-hour law and overtime compensation laws enforcing the standard. However, California law provides that shifts in excess of 8 hours may be worked by employees if such shifts are provided for in a collective bargaining agreement. In addition to this exemption, California presently passed a law which allows employers and employees to establish a regular work day of up to 12 hours without overtime if the proposed schedule is approved by a 2/3 majority of the employees.

Nevada also has established specific exemptions to its eight hour standard. Like Alaska, Nevada exempts work plans entered into between an employer and its employees which allow a work day of up to 10 hours per day without application of Nevada's overtime laws. Furthermore, Nevada law provides that employees who are not subject to minimum wage requirements or who earn at least 1.5 times the rate on minimum wage are not paid overtime if they work if they work more then eight hours per day. Employee approvals for these work schedules are not required. There are at least eight surface mining operations in Nevada operating 12 hour shifts pursuant to this exemption (both union and non-union).

Thus, Alaska is the only state in the union in which the Fairbanks Gold employees are prevented by law from pursuing the 12-hour work day schedule it has worked out with their employers.

Sponsor Statement for HB 68

HB 68 would change the current employee voluntary flexible work hour law. Under current law, an employer must pay an employee one and one half times the regular rate of pay for any hours worked in excess of 40 hours a week or 8 hours a day. However, the law also provides that the Department of Labor may approve a written agreement between an employer and employee, increasing the regular pay hours to 10 per day, provided that no more than 40 per week are worked, when the employee is performing under a voluntary flexible work hour plan.

This bill would permit the Department of Labor to approve a written plan between the employer and employee increasing the regular pay hours to 12 per day and not more than 40 per week.

The purpose of the purposed change is to benefit the mining industry, mine employees and to provide a favorable climate for those mining companies considering investing in the State.

Mine employees would benefit from the increase to 12 hours in their daily shifts because they would work the same number of hours at increased pay in 14 days as it currently takes 21 days to work. This would allow then more time with their families, greater pay due to increased number of overtime hours each month and higher morale and job satisfaction due to longer periods of off-work time.

The mine companies would benefit from lower absenteeism, increased mineral production and operational continuity. This, in turn, improves the company's competitive position in the global metals market and reduces the mines economic exposure to the fluctuations in metal prices, protecting the projected life-span of the mine.