The 2013 Session comes to an end today. According to the Webster's Ninth New Collegiate Dictionary (and Wikipedia), the term adjournment "sine die" comes from the Latin for "without day" meaning the session is adjourned without any future date being designated. This technically leaves the door open to special session but so far there doesn't seem to be any undercurrent that will happen, but you can never tell.
Minimum wage
You'll recall earlier in this blog I was convinced that we'd have a new minimum wage by now. With proposals introduced and passed in both chambers it appeared an increase in minimum wage was due for Hawaii. As always, the devil is in the details. While both the House Draft and Senate Draft versions of Senate Bill 331 contained increases in the minimum wage to at least $7.75 for January 2014, the details about tip credit and whether or not the rate should be tied to the Consumer Price Index could not be worked out. So, unfortunately for the folks earning minimum wage, there won't be an increase in their paycheck unless there is national support for President Obama's proposal to raise the federal minimum wage to $9.00 or the Fair Minimum Wage Act of 2013 (H.R. 1010) that proposes an $8.20, $9.15, to $10.10 minimum wage over three years. H.R. 1010 also ties future increases to the Consumer Price Index and includes a substantial tip credit.
Record Keeping
Senate Bill 332, HD 2 is now Act 70, and makes some modifications to the current record keeping statute in the Wage and Hour Law, Chapter 387, Hawaii Revised Statutes. In addition it also requires employers to include their name and address on the pay statement in addition to the material already required. The requirement to include the rate of pay which was previously only in the Hawaii Administrative Rules is now required statutorily. This measure takes effect on January 1, 2014, so should provide ample opportunity for employers to adjust their record keeping and payroll systems to ensure compliance.
Domestic Service Employees
Hawaii's Wage and Hour Law, Chapter 387, Hawaii Revised Statutes has always exempt individuals in domestic service employed in our about the home of their employer. Senate Bill 535, CD 1 limited that exemption to only those individuals working in the home of their employer either in domestic service on a casual basis, or providing companionship services for the aged or infirm. We have previously considered companionship services to be domestic services so that provision has not changed our treatment except to limit the exemption to those assisting the "aged" or "infirm". The definition of "casual basis" will get further review. If you have questions I urge you to contact me at pamela.b.martin@hawaii.gov.
The biggest wage and hour impact of this measure will be on those individuals in Hawaii who work as live-in domestic service workers and are currently exempt from overtime under the Federal Labor Standards Act (FLSA) and the Hawaii Wage and Hour Law. With the passage of SB 535 CD1, live-in domestic service workers will be subject to the Hawaii minimum wage and overtime laws. This bill is effective upon approval, so employers with domestic workers in and about their home will need to start thinking about compliance now.
This measure also extended important civil rights to domestic service workers who had previously been exempt.
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