Sponsor Statement for House Bill 347

This legislation will bring the State of Alaska in line with Federal statutes by exempting "flat rate" mechanics from State overtime requirements. Mechanics who work on a "flat rate" basis are restricted by their employers, in most cases, from working overtime because of the complications in the interpretation of existing law.

This legislation unravels the knot in existing regulation and frees employers to allow work as the mechanic sees fit. Flat rate mechanics would be allowed to start early or work late to complete projects more efficiently and increase their own earning potential. The long-term benefit is to the consumer through reduced overhead and increased flexibility of the mechanic. Because Alaska requires a daily overtime computation, employers in Alaska are faced with an awkward formula for calculating an ever-changing overtime cost. Seven other states have adopted exemptions for "flat rate" mechanics. They are Connecticut, Maryland, Pennsylvania, Nevada, North Carolina, Rhode Island, and West Virginia. By bringing Alaska statutes on par with the Federal exemption, Alaskan employers will be better able to compete for qualified mechanics in a currently shorthanded industry.

This legislation is supported by both auto dealers and flat rate mechanics, contact Representative Cowdery for letters of support, or more information.