Minimum wage and paid leave updates
In the February 8th post I outlined the measures the Wage Standards Division was following and talked more in depth about the issues brewing in minimum wage and paid leave. In the 8:30 a.m. House Labor and Public Employment hearing February 14, Chair Johanson stated that he would not considering any minimum wage bills as the final increase to $10.10 in Act 82, 2014, is still pending for 2018. This will be interesting because at a hearing in the Senate Judiciary and Labor Committee at 9:00 a.m. the Committee ultimately passed SB107 SD1 Relating to Minimum Wage increasing the minimum wage to $15 by January 1, 2021, and allowing annual increases according to the Consumer Price Index.. In addition SB107 SD1 suggests an increase in tip credit, although for an unspecified amount.
Another surprising event at the House Labor and Public Employment hearing Feb 14, was Chair Johanson's comments that seemed to profess love for some form of a paid leave bill. I thought I heard him say something like "It's time". The measure that was put through was HB4 Relating to Health, although there were so many amendments made for House Draft 1, that any comments have to be deferred until we actually study it. This is the measure that creates a new chapter entitled "Paid Sick Leave" and requires employers to provide sick leave for the employees own illness, the care of a family member, or if a public agency closes a business due to a health hazard. The Finance Committee will hear HB4 HD1, on Wednesday, the 22nd at 3:00 in room 308. On the Senate side, SB 408, an employee paid trust fund approach to paid leave has not been heard in spite of the impressive list of sponsors.
Public works projects and housing
As mentioned in the 2017 State of the State address by Governor Ige, housing is big priority for Hawaii. Housing for the homeless and affordable housing remain elusive targets and are the subject for HB1179 HD1 and SB1105 related to Housing, By providing limited exceptions to Hawaii's Wages and Hours of Employees on Public Works Law (Chapter 104, HRS) it may operate as a small step that moves the State forward in accomplishing those goals. The measure focuses on housing programs developed with the Hawaii Housing Finance & Development Corporation .
Lie detector tests, family leave, guarantee salary exemptions, and stop-work orders.
The expansion, or clarification, as some see it, to including corrections agencies as exceptions to the prohibition of lie detectors in the workplace has moved through the subject matter committees on both sides, the House Committee on Public Safety and the Senate's Public Safety, Intergovernmental Affairs and Military Affairs. The issue now goes to the Judiciary Committee on the House side and the joint Judiciary Labor and Ways and Means committees on the Senate. (HB 1130, SB 996) (Chapter 378-Part II, HRS).
The expansion of the family leave (Chapter 398. HRS) to include the care of siblings and in the death of a family member. HB213, HD1, will also be heard by the Finance Committee on Wednesday Feb 22, There is no companion on the Senate side. Adding the ability to be protected by the family leave law for reasons related to domestic violence, in addition to the Victims Leave law, is found in HB 678 and SB 516. Both measures received hearings but only the House measure passed out. Waiting to see if the House Finance Committee will pick it up.
An increase to the guaranteed salary threshold for exemption from Hawaii's minimum wage and overtime (Chapter 387, HRS), has been proposed in HB 935, and SB 1117, but hasn't made any progress. Hawaii's Wage and Hour Law has an exemption from minimum wage and overtime for employees that get paid a guaranteed monthly salary of $2,000 a month. It's been a while since this has been modified and with several minimum wage increases, the exemption could apply to employees of employers who are not subject to the Fair Labor Standards Act (meaning generally small companies earning <$500,000 gross, and don't have any interstate commerce).
The concept of stop-work orders is being promoted by the Pacific Resource Partnership, a private non-profit agency representing the Hawaii Regional Council of Carpenters. Measures advocating stop work orders as a penalty for violating the Workers Compensation Law, (Ch. 386, HRS) Temporary Disability Insurance law, (Ch. 392, HRS) or the Payment of Wages and Other Compensation Law. (Chapter 388, HRS). HB208, HD2 for the workers compensation law seems to be moving through the system and all that's left is the finance committee for it to make it's way to the Senate. HB 1207, and HB 409, have been deferred, but SB854 SD1 concerning the payment of wages law is waiting for Ways and Means hearing. In other states like California and Connecticut, stop work orders have been used with safety issues as the focus of enforcement where contractors did not carry any workers compensation insurance.
And that's today, but tomorrow things might change! I'll keep you posted.
Tuesday, February 21, 2017
Wednesday, February 8, 2017
2017 Legislative Session - Part I
New Leadership
The new Chair of the House Committee on Labor and Public Employment (LAB) is Aaron Ling Johanson, Representative from the 31st District that includes Moanalua, Red Hill, Foster Village, Aiea, Fort Shafter, Moanalua Gardens, Aliamanu, and Lower Pearlridge. The Vice Chair is freshman Daniel Holt, Representative from the 29th District including Kalihi, Palama, Iwilei, and Chinatown. The former House labor chair Mark Nakashima and former vice chair Jarrett Keohokalole are now leading the House Committee on Economic Development & Business.
On the Senate side, Gilbert Keith-Agaran, Senator from the 5th District of Wailuku, Waihee, and Kahului Maui, remains as the chair of the Senate Committee on Judiciary and Labor. A new vice chair, Karl Rhoads, from Senate District 13 that includes Dowsett Highlands, Puunui, Nuuanu, Pacific Heights, Pauoa, Punchbowl, Palama, Liliha, Iwilei, Chinatown, and Downtown, replaces Maile Shimabukuro who continues as Chair of the Committee on Hawaiian Affairs.
What are we watching?
The Wage Standards Division follows all the measures that will impact any of the laws in the Hawaii Revised Statutes (HRS) we are responsible for enforcing. This year we are seeing some familiar concepts including minimum wage increases(Chapter 387, HRS), paid leave, expansion of the family leave (Chapter 398. HRS), an increase to the guaranteed salary threshold for exemption from Hawaii's minimum wage and overtime (Chapter 387, HRS), and including corrections agencies with law enforcement agencies who are not prohibited from using lie detector tests in the workplace, (HB 1130, SB 996) (Chapter 378-Part II, HRS). New concepts being followed include stop-work orders for violations of the payment of wages law (Chapter 388, HRS) and measures related to housing that carve out exceptions to Hawaii's prevailing wage law for public works (Chapter 104, HRS).
Minimum Wage
Hawaii is in the penultimate step of Act 82, 2014, with a current minimum wage of $9.25 per hour and the last increase to $10.10 per hour set for January 1, 2018. This year there are nine minimum wage bills in either the House or Senate aimed to make additional increases to the minimum wage that we have our eyes on.
Support for using a consumer price index (CPI) for the minimum wage is evident again as in HB 1433 introduced by Representative Johanson and Chris Lee. Another measure in the House advocating use of the CPI is HB 441, introduced by Representatives Ing, Woodson, Gates, and LoPresti which also repeals the seventy-cent tip credit for regularly tipped individuals. On the Senate side SB107 introduced by Senator Karl Rhoads uses the CPI for computation of the minimum wage and also repeals the seventy-five cent tip credit. See also SB 544 and its companion HB 5.
Measures to increase the minimum wage without the CPI calculation include:
SB 14 advocates minimum wage increases in addition to a living wage assessment to be conducted by the Department of Business, Economic Development and Tourism (DBEDT); and SB 267 increasing minimum wage to $14 per hour by the year 2022, introduced by Senators Espero, Rhoads, Baker, Galuteria, Green, Ihara, Keith-Agaran, Kidani, Ruderman, and Shimabukuro.
The third type of minimum wage bill we are looking at allows the counties to impose their own minimum wage. SB 1165 increases the minimum wage to $15.10 by the year 2023 and also allows counties to impose a higher minimum wage and a lower minimum for teens. And finally HB 442 that proposes allowing the counties to impose their own minimum wage.
Paid Leave
There aren't as many paid leave bills as there have been in the past, (see February 3, 2015 post) with only four that represent just three ideas. Bills with the employer paying for the leave are SB 638 and it's companion HB 4, and HB 1434. HB 1434 has already passed the first committee of its triple referral. HB 1434 requires food service employers with 25 or more employers to pay for 40 hours of leave. The leave can be used for the employee's own illness, or the care of a child, spouse or parent, or for absences related to being a victim of domestic violence or sexual assault, The HD1 version will have an anti-retaliation clause and limit the scope of the definition of food establishment according to comments made at the February 7, 2017 hearing. It is now referred to the House Judiciary committee.
HB 1362 creates paid leave benefits though an employee funded trust fund.
There were three measures aimed at only State employees that provided paid leave, HB 214, is for paid family leave and HB 683 and its companion SB521 provide paid maternity or paternity leave.
Part II will address the other measures not discussed and provide an update on Minimum Wage and Paid Leave. See you at the Capitol.
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