Alaska Employment Law

The Alaska Supreme Court has affirmed most of the trial court’s decisions in an AWHA class action.  Given that I represent the employee class, I’ll try to keep this entry brief and neutral.

Air Logistics of Alaska, Inc. (AirLog) provides helicopter services to various companies, including Alyeska Pipeline Service Company.  It contracted to pay its remote employees for 10 hours/day, though they “worked” fewer hours.  AirLog did not include various “add-ons” (premiums for special skills, for instance) when it calculated overtime.

David Throop sued for overtime on both AWHA and contract theories.  The trial court certified a class action, and then awarded various relief to the class, not including liquidated damages and actual attorney fees.

On appeal by both parties, the Supreme Court (4-0, opinion by Matthews, with Bryner not participating), held:

1)  All 10 hours per day were compensable, because a) the remote employees’ freedom to engage in personal activities was significantly restricted and b) the parties’ agreement to treat the 10 hours/day at a remote site as compensable was “reasonable”;

2)  Throop’s contract claim for overtime was subject to the 2-year AWHA limitations period because the employment contract didn’t explicitly call for the payment of overtime at one and one-half times the rate of regular pay;

3)  The trial court didn’t err in refusing to award the employees AWHA liquidated damages, because the employer presented its pay plan to DOL, received DOL’s oral approval, consulted with its attorney, was open with its employees, and lacked intent to conceal or mislead the DOL or its employees; and

4)  The trial court didn’t err, in calculating the class’ attorney fees, when it refused to use the 2-step procedure in Mun. of Anchorage v. Gentile, 922 P.2d 248 (Alaska 1996), and refused to award full fees for all Rule 23-related work.

Air Logistics of Alaska, Inc. v. Throop, Op. No. 6211 (Alaska Dec. 14, 2007). 

The employee class is represented by William Schendel and Daniel Winfree (now withdrawn as counsel) of Fairbanks.  AirLog is represented by Gregory Miller of Birch, Horton in Anchorage, and Zane Wilson of Cook Schuhmann in Fairbanks.