2017 Legislative Session - Part I

It's already three weeks into the Hawaii 2017 Legislative Session.  The biggest change for the DLIR is the leadership of the Labor Committees, especially in the House.

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.

Hawaii Minimum Wage Increase in 2017!

$9,25 per hour
The new year brings the 3^rd step of the 4-step increase to minimum wage in Hawaii.  As of January 1, 2017 the minimum wage for 2017 will be $9.25 per hour.  Act 82 from the 2014 Regular Legislative Session increased Hawaii minimum wage in four steps.  The last step will increase the minimum wage to $10.10, as of January 1, 2018.

Tip credit remains the same

 The credit for regularly tipped employees will not change and remains the same as the 2016 tip credit of 75 cents, as long as the tipped employee receives at least $16.25 (minimum wage plus $7.00) per hour in wages and tips combined. This allows the adjusted minimum wage paid by the employer to be $8.50, per hour, as long as the employee is making $7.75 per hour in tips.   See the Wage Standards Division webpage for more details on figuring the tip credit at http://labor.hawaii.gov/wsd/files/2014/06/Tip-Credit-Notice-with-exhibits-June-2014.pdf.

Required posting of notice

The required notice to be posted in the workplace can be found on the Department’s webpage at http://labor.hawaii.gov/wsd/files/2014/06/Minimum-Wage-Poster-June-2014.pdf

The complete Wage and Hour Law, Chapter 387, Hawaii Revised Statutes can be found online at http://www.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0387/HRS_0387-.htm.

and the corresponding Hawaii Administrative Rules Chapter 12-20 at http://labor.hawaii.gov/wsd/files/2013/01/12-20.pdf.

Relation to FLSA

While the federal minimum wage remains at $7.25,  per hour, under the Fair Labor Standards Act (FLSA), all employers in Hawaii are required to pay their employees at least $9.25 per hour in 2017.

Minimum wage statistics

Minimum wage and overtime complaints filed under the Wage and Hour Law, Chapter 387, Hawaii Revised Statutes continue to represent approximately ten percent of complaints filed in the Wage Standards Division.  A fifty percent  decrease in minimum wage and overtime complaints filed showed up in Maui County in 2016, with the number of complaints in Maui County dropping from 2 a month to just one a month.

$53,607.59 to be Transferred to Unclaimed Property

       The Wage Standards Division has just completed their review of unclaimed property in the Wage Claim Fund.  Money in the Wage Claim Fund is collected from employers for back wages due former employees that was assessed as part of an investigation under the authority of one of the laws enforced by the Wage Standards Division.  There are 200 people that could not be located.  A total of $53,607.59 will be transferred to Unclaimed Property.  The range of individual claims is from $8,761.14 to $1.63, with the median amount $57.39 and the average amount owed of  $268.04.  It will take a little time for unclaimed property to put the funds in their system but if you think you know anyone on this list, they can call our office at 808-586-8777, to determine next steps in recovering any amounts that may be due.

ABRAHAM, DETRECK

ACOL, TOSHUA

AGSALOG, DOMINADOR

AH NEE, GLENN D

AHU, BRANDON W.K.

AHU, III, ROBERT K.

AKAMU, LYSINIA K

AKIONA, NATHAN A

ALVAREZ, LUIS

ANCHO, RICARDO

AQUINO, GLENN

AQUINO, MARBEN B

ARAKI, KEONI

AUALA, JONATHAN

BADAYOS, BENEDICT

BALALA, BRANDON H

BALLESTEROS, PAUL A

BAN, CAROL

BARBATI, TINO J

BARNES, JAMES

BECKA, JAMES

BERRY, SANDRA E

BOLOS, ALEXANDER M

BORGES, HARRY

BRILL, MATTHEW T

BRITTO, IAN C

BUCHTA, CURTIS S

BURGHER, GARY D.K.

BUSTAMANTE, ANTONIO

CABCUNGAN, FLORENCIO

CACAL, CECIL

CAMPOLLO, WILLIAM J

CAMPOS, CHRISTOBELL

CANCINO, HILARIO

CARVELLI, FRANK L

CHASE, RANDALL S

CHOI, YOUNG HOON

CHRISTMANN, CHRISTINE

CLAYTON, JERRELL

COOLEY, DONNA M

CORNEL, JASON C

CORREIA, GLORIAGEEN K

CSOMA, LASZLO T

CUBA, NELSON

DANIELSON, ALBERT L

DAVIS, DARREN D.

DE VERA, DAVID

DIAZ, MIGUEL A

DIEP, DUC HUU

DOJAQUEZ, FRANK

DOLORES, ALBERT

DUKE, JANET

DUPRE, DARRYL D

DUVALL, ALEXANDER S.

EDRINGTON, REEVE

FELICIANO, JASON R

FELIPE, JESSIE

FELIX, JR, RINGKO J

FLORES SALAZAR, ISMAEL

FLYNN, ROBERT J

FONTES, JR., RICHARD W.

FREITAS, CHRISTOPHER A

FUJIMOTO, ASHLEY L

GABUAT, ALBERT M

GAEA, SIITIA F.

GAFFORD, ELVIS

GALAPIA, BRANDEN

GALINDO, LEANDRO

GAOTEOTE, GREG

GLASSER-HYMON, JEREMY

GLEASON, KEVIN

GOMEZ, TERRY L

GONDA, EZEKIAL C

GRACE, ROBYN

GROOMES, JAMIE

GUIDRY, JOHN

GUIEB, ALVIN

GURROBAT, TRINA K

GUTUTALA, ARTHUR

HAGLUND, ANNIKA

HALA, JAQUELINE N

HALLBERG, DAVID W

HARKER, DAVID

HASEGAWA, TEDDI

HAYES, TIMOTHY

HEGWOOD, AARON

HEZEKIA, MIKE

HINDBERG, STEVEN A

HIROKAWA, VANCE

HOPKINS, GEORGE A

HORD, TRISTAN

HORIKAMI, ALVIN

HORMAECHEA, F

HUBERT, JR, PRUETT

IGNACIO, RICARDO S

ING, RICHARD

JACOBS, ROBERT S

JAMISON, DEBBIE

JAWHARI, RANDA D.

JENSEN, NATHAN

JOHNSON, JERALD

JOHNSTON, STEPHEN

JOSEPH, NADEEM A

KALILIKANI, EARL

KAMALU, DERARD

KEITH, MICHAEL G

KEPOO, STANFORD

KIM, DERRICK

KIM, SUNG IL

KUIEE, LEROY

LA MASTER, FRANK C

LACNO, DONALD

LAU, JOHN

LAU, WAI LOONG

LIUSA, TAATIATIA

LOPEZ, GILDARDO

LOZANO, WILLIAM R.

LUNA, JR, GILBERT

MACOMBER, EDWIN

MANUEL, FACUNDO

MARCHETTI, JOSEPH E.

MARKO, MICHAEL

MARKS, KARL

MCCLESKEY, JR, WALTER R

MCDONALD, MARY K

MERCADO, DELBERT M.

MONIZ, ASHLEY

MORALES, SAMUEL

MORISHIGE, JON T

NAEATA, VILIAMI U

NARZISI, FRANK A

NETHON, EFRENT

NGONETHONG, VIENGPRAKANH

ONDAYOG, LARRY

OUTLAW, JEROME (DEC'D)

OWENS, STIRLING

PAGUIRIGAN, JAYSEN

PAIVA, ALROY U

PALAMA, STANLEY

PARK, KYUN DONG

PASA, SHANNON

PEREZ, JOSEPH O.

PESTANA, PATRICIA

PINERO, PAUL

PREM, BRIAN

QUINN, CHRISTOPHER

QUITON, ROD

RAFAEL, EFREN R.

RAMSAY, CHAD

RAY, WILLIE J

REINY, III, CHARLES K

REMO, JOHN E

RESURRECCION, RAYMOND

ROBERTS, SCOTT

ROBINSON, LISA

ROGERS, KALEI

ROMIAS, SHANNON

RUGENSTEIN, PATRICK A

RUPP, JOEL

SACRO, JOEL

SAHAGUN, ELEUTERIO

SAMATUA, LEAUSA

SANTOS, MAILE-ANNA

SARTE, PEDRITO

SCHAPER, JOSHUA

SEDENO, JOSEPH J

SERNA, MARCELINO

SEUMALO, VAAI

SHANAHAN, TASHA L

SHELTON, III, JAMES

SHIN, DONG WON

SIAOSI, KENNEDY K

SMITH, MICHAEL

SNELL, STEVE

SPENCER, DUSTIN

SPENCER, KENNEDY

STANTON, JR, CALFREY W

SUEISHI, CHARLES

SUNIGA, PEDRITO

SYLVERSON, RICHARD

TAGAPUEN, JACINTO S

TAIESE, ARETASETA

TAUM, DONALD

TAYLOR, CHRIS

TINGLE, CHARLES D

TIRADO, FRANCIS

TOA, TELISI

TUPOU, AISEA

TYPHOON, GUSTON

TYRELL, JOSEPH S

UNKNOWN, UNKNOWN

UNKNOWN, UNKNOWN

VASQUEZ, GILBERT

WEBER, DENISE

WELLS, DARIN

WILLIAMS, JR, RON

WILLIAMS, JR., TIMOTHY

WILSON, ANDREW

WISE, RACHEL

YIM, MARC K

YIM, MARC K

ZAZUETA, MIGUEL

ZINDA, STEVE A

Utilities and Wages and Hours of Employees on Public Works

     Generally, utilities are not covered workers when attending to their regulated industry activities on public work projects.  It is only when the utility workers go beyond their normal scope of work as part of a public works project that they may be construed as included workers subject to Chapter 104, Hawaii Revised Statutes, Wages and Hours of Employees on Public Works Law.

    In this area, the State generally follows the Federal application of the issue as explained in the Field Operations Manual

        15d09 Public utility installation. (a) Whether or not the employees of a public utility, who perform construction-type work in connection with federal and federal-assisted projects, are covered by the DBRA will depend upon the nature of the contracts involved and the work performed thereunder.
      (b) Where a public utility is furnishing its own materials and is in effect extending its own utility system, such work is not subject to DBRA. The same conclusion would apply where the utility company may contract out such work for extending its utility system. However, where the utility company agrees to undertake a portion of the construction of a covered project such work would be subject to the DBRA labor standards requirements of the construction contract.
     (c) For example, DBRA wage provisions of the U.S. Housing Act do not apply to a contract between a local housing authority and a city water department under which the department installs water mains in streets adjacent to a housing project; connects mains and meters to the project’s plumbing; furnishes water to the project; and operates and maintains such mains and meters without expense to the authority beyond an initial service charge, since the city is engaged essentially in the extension of its water distribution system rather than in the development of the project.
        (d) Also, employees of a telephone company engaged in the installation of ordinary telephone facilities for a government facility under construction are engaged essentially in the extension of the telephone company’s system rather than in government construction and, therefore, are not covered by the DBA. However, removal and relocation of telephone lines at the sole option of the government to eliminate interference of  the lines with construction at the project site is construction work covered by the DBA.         Revision 684 FIELD OPERATIONS HANDBOOK – 03/24/2016

Temporary position available now

 Intake and Certification Branch Chief
     The Wage Standards Division has a temporary 89-day position available for the Intake and Certification Branch Chief.  This person is responsible for receiving all the complaints from the public,  overseeing all child labor certifications (permits), including variances, answering inquiries over the phone and email, making recommendations for special minimum wage certificates, waivers of bi-monthly payments and requests for extended time to issue paycheck after the end of the pay period.

       The education requirement is a four year degree from an accredited college, with at least one bookkeeping/accounting class or comparable experience.
       The work experience element requires three and one half years in labor law related work, ideally with some construction background (that would assist in the prevailing wage classification determinations.)

     I suspect that someone working in human relations of the construction industry that handles wage and hour, payment of wages issues, Hawaii family leave law, and the prevailing wage law (Chapter 104, HRS), would be a good candidate.

Why only 89-days?
    The 89-day period is meant to allow the Division to fill the vacancy while preparing the documentation for the formal offering of the position.  Anyone who is hired for the 89-day position will still have to apply for the permanent offering when it is issued.  The permanent offering will be a civil service position that is subject to all the civil service requirements.

    The 89-day appointment is not subject to the civil service requirements and does not have any benefits attached.  The advantage of working in the 89-day position is that during the formal civil service process the 89-day worker will have a more intimate knowledge of the position that may benefit them in the formal civil service process.

How do I apply?
   Applicants must fill out a non-civil service application, and may submit their resume to me, at pamela.b.martin@hawaii.gov and I will forward it to the personnel office. Note the job title you are applying for is Labor Law Enforcement Specialist IV, Intake and Certification Branch Chief, and the position number is #1628.  Be sure to check "89-day hire" at the top of the page and  include all your relevant experience on the application or an attached sheet.  Sometimes just a resume is insufficient to describe with specificity your knowledge, skills, and abilities. The position is a level SR-22 with  a starting salary of $4,088 a month.

Why is this position open?
     Like many other agencies and private businesses, the Wage Standards Division has been subject to the graying of our Division and our much of our senior staff has retired or been promoted without an adequate number of lower level personnel to fill the gaps.  These opportunities are few and far between because the civil service requires us to first offer senior positions to those already working for the State.  If you are interested in this position,  please submit an application and any other supporting documentation as soon as possible.  Thank  you, we look forward to hearing about your skills.

FLSA New Overtime Regulations Apply in Hawaii?

(See Sept 5, 2017 post for an update on this issue.)
Do the New FLSA Overtime Regulations Apply in Hawaii?
 Yes for employers or employees subject to the Fair Labor Standards Act (FLSA).  Generally, employers with an Annual Dollar Volume (ADV) of at least $500,000 or engage in interstate commerce are subject to FLSA.
 
Probably not for smaller businesses that gross under one-half million dollars and limit their business to Hawaii.

What are the new FLSA overtime regulations/rules?
The regulations have increased the salary thresholds from $455 per week to $913 per week  for eligibility to be exempt from overtime .  Good for employees, more expensive for employers because any executive, administrative, or professional employees that may have been exempt from overtime may not be unless their salary is at least $913 a week.  Those previously exempt with salaries less than $913 week, will now be eligible for overtime for hours worked after 40 hours a week.

When are the  new regulations in effect?
The new rules won't be in effect until Dec. 1, 2016.  So you have six months to figure it all out.

Where can I learn more about it?
The US DOL is having some webinars to help people understand what this means to them.  The webinars are early 7 a.m. Hawaii Standard Time, and they are free.  Register here:
https://www.dol.gov/whd/overtime/final2016/webinars.htm

Working for Hawaii

There was plenty of interest in the dozen positions DLIR was recruiting for.

Our personnel office did a great job putting together the presentation and

the take away information for potential applicants

I participated in the Job Fair at the Capitol last week (That's me with the pony-tail).  WSD is still recruiting for one Labor Law Enforcement Specialist (LLES) position on Oahu, and we expect to have a vacancy in Kauai in early 2017.  I am always impressed with the range of qualified individuals who appear, what I am surprised at is the lack of understanding on how you get hired for a State civil service job in Hawaii.  I have worked in public service  for the people of Hawaii for about 26 years, part of that time as an exempt employee and part as a civil service employee.  It has taken me  a long time to figure out some of the most basic concepts, so I'd like to save potential employees some anguish and share some tips on how the State civil-service process operates in hopes that some very qualified people explore these opportunities  little bit harder.

Civil Service
There are usually lots of vacancies in the State, just go to the Department of Human Resources and Development's (DHRD) job site and you can see the list of all types of jobs.  Today the list showed 265 civil service jobs, the job we're recruiting for is there as of the writing of this blog, and still labeled "new", but was posted April 12.  Usually jobs have a limited open window, generally about 2 weeks.  That means an open job could be posted and removed in 2 weeks, so if you aren't checking regularly, you might miss the job of your dreams.  Our LLES position is also posted on our Department of Labor and Industrial Relations (DLIR) website because it is a position exclusively found at the DLIR, unlike an Office Assistant position which can be found in all departments and agencies so you need to apply at the State DHRD site.

The application, whether on the Department website or the DHRD website can be lengthy and is the main piece of information that first evaluators will determine whether or not you meet the minimum qualifications (MQs) for an interview.  First evaluators are human resource individuals, so may not have the subject matter expertise someone in that particular area may have, so taking the time to fully explain your responsibilities to show you have the Knowledge Skills and Abilities (KSAs), is worth it.  Be sure to specifically correlate your knowledge, skills and abilities with the position KSAs with examples. If you get on the interview list,  someone will contact you to set up a time, you'll be interviewed most likely by a panel of three.  The questions and grading of the practical exam, if there is one, are reviewed by the personnel office and an offer is made to the highest point-getter, assuming a minimum scoring threshold is reached.

Another important thing to understand about civil service jobs is that most of the higher positions are first offered internally to employees already working in the civil service system as opportunities for promotion.  If you really want a career in public service take the lower job, get in the system and then you can progress from the inside through Internal Vacancy Announcements (IVAs). Most positions are in series, like our LLES.  We generally have to hire from the outside at the entry level LLES I and then train individuals through the series to its full potential LLES IV.  Our series training usually takes at least 2 1/2 years to go from a LLES I to LLES IV.  Other positions may have different training periods. 

The pay scales and series descriptions can be found on the DHRD website under Classification and Compensation page.  See Classification Specification and Minimum Qualification Requirements.  Compensation is based on the determined Salary Range (SR), our LLES positions range from SR 16 for LLES I to SR 22 for LLES IV, which currently correlates to $38,772 to $72,648, annually.  These figures do not incorporate benefits which can be found on the DHRD website as well. (Note the retirement program currently takes 8% from an employee paycheck towards their individual retirement, returnable if you leave before you are vested or eligible for retirement.)

Exempt
Positions exempt from civil service usually don't have as rigorous a hiring process, and more closely resembles the private sector.  Exempt positions are also not part of the union but usually mirror many of the benefits that were collectively bargained for by the union and are usually "at-will" employees.  These are the type of positions that you may want to provide your resume to the head of the agency or person recruiting.

Finding open exempt positions is not as easy as the civil service positions, some may be advertised on the DHRD site, although most will have notices on the agency website or be word of mouth.  I was hired in my first State of Hawaii exempt position after cold-calling the legislative reference bureau (LRB) and asking about opportunities. I started working for them shortly thereafter as a part-time temporary job-sharer that lasted five years before I took a full time job with LRB.  So my advice is to make contacts in places you think would be a good fit for you and keep checking in.

A Rewarding Career
Whether you're looking for a first job or a change in career, working for the people of Hawaii can be a rewarding career.  Stay positive and ask for assistance.  The DLIR has a whole Division dedicated to Workforce Development that provides job search help and job training.  Contact them to see if you qualify for their assistance programs.  The 24/7 HireNet is always available free of charge.  Looking forward to meeting the new hires in the elevators!