Alaska Employment Law

In the overtime class action against Hageland Aviation Services, the parties settled, subject to the employer’s right to appeal Judge Peter Michalski’s ruling on the constitutionality of a 2005 amendment to the Alaska Wage and Hour Act.  The settlement provides the class with $900,000 in damages, and its attorneys with $700,000 in fees and costs, if the employer loses the appeal.

The 2005 amendment sought to make retroactive an earlier (2003) exemption from overtime for pilots and other flight crews.  Michalski held that the employees had a property interest in receipt of overtime compensation at the end of each pay period, and that the retroactive abolition of that interest violated the Takings Clause.  He also held that the 2005 amendment impaired the employees’ contract rights. 

The appeal has now been fully briefed on the following issues (as stated by Hageland):

1.  Whether a 2005 statute codifying the Alaska Department of Labor’s position on pilot overtime pay, as communicated to the Alaska Air Carriers Association, is constitutional because it is clarifying legislation.

2.  Whether a statute retroactively exempting pilots from overtime pay violates the Takings provision of the Alaska Constitution, Article I, section 18.

3.  Whether a statute retroactively exempting pilots from overtime pay violates the Contract Clause of the Alaska Constitution, Article I, section 15.

Below are links to Judge Michalski’s Order, and the parties’ appellate briefs:

Michalski’s Order

Hageland’s Opening Brief

Harms’ Appellees Brief

Hageland’s Reply Brief

Tom Daniel of Perkins Coie and Peter Maassen of Ingaldson, Maassen & Fitzgerald represent Hageland and its owners.  Tim Petumenos, Max Garner, and Peter Nosek of Birch Horton represent the class members.

The Supreme Court hears oral argument on October 7, 2008.