2017 Legislative Session - Part 2

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.

Hawaii Family Leave Law Update

      An interesting question arose at the Hawaii Employers Council (HEC) Workshop on Family Leave in Hawaii at the end of last month.  The question focused on the calculation of how much paid leave an employee is allowed under the Hawaii Family Leave Law, Chapter 398, Hawaii Revised Statutes.  The law says the employee is allowed up to 10 days of accrued and available paid leave of the 4 weeks they are entitled to. (See 398-4, HRS)  It's easy if an employee works a standard 5 day, 8 hour, 40 hour week schedule.  It would be the two week period or 80 hours.

     The question that arose at the HEC, was "what if an employee works three 12-hour days a week, are they allowed 10 days or 120 hours of paid leave?" The quick answer is no, Wage Standards Division interprets the law to allow 6 days of paid leave, in the example asked.

    Our analysis had to look at the intent of the law. The law entitles employees to a total of 4 weeks leave with an option of 10 working days, or two work weeks, or half of the entitlement, for the employee to use paid accrued or available sick leave. If an employee works 3 days a week, the four week period would be twelve days, and half of that is 6 days. So the number of days (6) times the amount of hours worked each day (12) would mean the employee would be allowed 72 hours of paid accrued and available sick leave. If an employee works a variable schedule, to determine how many days are allowed use an average amount of days worked per week, and allow two weeks worth.


     Expressing it as a calculation it would look like: (Normal number of days worked in a week x Normal number of  hours worked in a day) x 2 = # of hours allowed of paid accrued and available sick leave.

   
 Finally, HB 884, 2012 Regular Legislative Session,  that potentially added "Sibling" to the people an employee could be caring for with a serious health condition, did not pass out of the Senate Ways and Means Committee, so there is no change to the HFLL.