Treadwell, 062013 AKAGO, AGO JU2013200288

Case DateJune 20, 2013
CourtAlaska
The Honorable Mead Treadwell
AGO JU2013200288
A.G. No. JU2013200288
Alaska Attorney General Opinions
June 20, 2013
         The Honorable Mead Treadwell          Lieutenant Governor          P.O.Box 110015          Juneau, Alaska 99811-0015          Review of Initiative Application for “An Act increasing the Alaska minimum wage to $8.75 per hour effective January 1, 2015, $9.75 per hour effective January 1, 2016, and thereafter adjusted annually for inflation.”          Dear Lieutenant Governor Treadwell:          You asked us to review an application for an initiative entitled "An Act increasing the Alaska minimum wage to $8.75 per hour effective January 1, 2015, $9.75 per hour effective January 1, 2016, and thereafter adjusted annually for inflation" ("13MINW"). Because the application complies with the specific constitutional and statutory provisions governing the initiative process, we recommend that you certify the application.          I. Summary of the Proposed Bill.          A. Brief Summary and Background.          The bill proposed by this initiative would provide for an increase in Alaska's minimum wage. Specifically, the bill would increase Alaska's minimum wage to $8.75 per hour effective January 1, 2015, $9.75 per hour effective January 1, 2016, and thereafter adjusted annually for inflation.          Currently, AS 23.10.065(a) sets Alaska's minimum wage at $7.25 per hour until December 31, 2009, "and thereafter not less than 50 cents an hour more than the federal minimum wage." Accordingly, since 2010, Alaska's minimum wage has been $7.75 per hour. The Fair Minimum Wage Act of 2007[1] amended the Fair Labor Standards Act of 1938 to ultimately increase the federal minimum wage to $7.25 per hour for employment subject to the Federal Fair Labor Standards Act. For states that have statutory minimum wages, those wages range from $5.15 per hour in Wyoming and Georgia (for employment exempt from the federal minimum)[2] to $9.19 per hour in Washington.[3]          B. Sectional Summary.          The bill proposed by this initiative is two pages long, single-spaced, and consists of four sections, which are summarized as follows.
• Section 1. This section is a statement of findings and a declaration. The section declares that an increase in Alaska's minimum wage would help ensure a minimum standard of living for the health and well-being of Alaskans; that Alaskans working full-time at the current minimum wage earn far below the federal poverty level for a family of three; that several states in the Pacific Northwest have a higher minimum wage; and that a fair minimum wage indexed to the cost of living will help low-income workers keep pace with inflation.
• Section 2. This section is a statement of purpose and intent, providing that the bill intends to raise Alaska's minimum wage to $8.75 per hour effective January 1, 2015, $9.75 per hour effective January 1, 2016, and thereafter adjusted annually for inflation.
• Section 3. This section would repeal and reenact AS 23.10.065(a). The section would require every employer to pay each employee a minimum wage of $8.75 per hour effective January 1, 2015, $9.75 per hour effective January 1, 2016, and thereafter adjusted annually for inflation. The section provides a method for calculating that adjustment, and provides that the adjustment would apply to work performed from January 1 through
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