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2014 Legislative Session: Final Report

On July 8, 2014, we passed the final deadline of the 2014 Legislative Session, the Veto Deadline.  The Veto Deadline is the date by which the Governor must either sign or veto a bill.  Any bill that is not vetoed becomes law “without the governor’s signature.”  This year, the Governor did not veto any of the employment-related bills.

Some of the bills that have became law include those addressing the following areas:

  • Minimum Wage (Act 82) – increases the states minimum wage
  • Private Guards (Act 94) – relaxes CE requirements for private guards
  • TDI (Act 160) – adds “organ donation” as an eligible disability to Hawaii’s TDI law
  • Organ, Bone Marrow or Stem Cell Donation (Act 161) - creates new leave law
  • Direct Deposit or Pay Cards (Act 208) – updates Hawaii payment of wages law
  • WC Drugs (Act 231) – sets price for repackaged, relabeled or combined WC drugs
  • Hawaii Health Connector (Act 233) – changes the operations of the Health Connector

A full list of bills that may be of interest to employers can be viewed on the HEC Legislative Digest, which can be accessed on the Legislative Updates section of the HEC website.  The Legislative Digest is currently available to the public.  In addition, HEC members can also access a Highlights article that discusses several of these new laws in more detail.

 
Governor Signs Minimum Wage Bill

On Friday before Memorial Day Weekend, Governor Abercrombie signed SB 2609 CD1 - the minimum wage bill from the 2014 legislative session - into law.  The state’s minimum wage is currently $7.25.  This bill will increase the minimum wage four times over the next four years as follows:

  • January 1, 2015 – $7.75
  • January 1, 2016 – $8.50
  • January 1, 2017 – $9.25
  • January 1, 2018 – $10.10 (<– Clayton Hee got that extra $0.10 that he wanted.)
In addition, this bill also increases the state’s tip credit (which is currently just 25 cents per hour) to 50 cents on January 1, 2015 and 75 cents on January 1, 2016.  In order to take any tip credit, however, the employee at issue must earn at least $7.00 above the minimum wage in tips and wages.  In effect, an employee must earn $7.50 an hour in tips beginning January 1, 2015 and $7.75 an hour in tips beginning January 1, 2016 for an employer to take a tip credit.  While this increase in the tip credit may be welcome news for some businesses, other employers will lose the tip credit altogether for employees who earn less than $7.50/$7.75 an hour in tips.  In other words, those employers will lose the 25 cent tip credit they currently utilize.

 
2014 Legislative Session: Running Updates

Each year, the Hawaii Employers Council provides its members with updates on labor and employment law bills that are being addressed by the legislature. One of those documents, the Legislative Digest, is actually currently available to the general public, and can be accessed here:  HEC Legislative Updates.

Bills that are still alive as of the Second Lateral deadline address (1) the minimum wage, (2) payment of wages via direct deposit and pay cards, and (3) workers’ compensation drugs, fee schedule and settlements.

For the 2014 Legislative Session, the Legislative Digest is available for the following key deadlines:

  • Bills Introduced (available)
  • First Lateral (available)
  • First Crossover (available)
  • Second Lateral (available)
  • Second Crossover (available)
  • Sine Die  (available)
  • Veto Deadline (available)

As more deadlines pass, I will update this blog entry to indicate when the most recent Legislative Digest is available.

Other updates, such as articles providing a detailed explanation of several of the significant measures and talking points on certain bills, however, are available only to HEC members.

 
2014 Legislative Forecast

The 2014 Legislative Session begins on Wednesday, January 15, 2014 and runs through May 1, 2014.  This year, the legislature will likely address several labor and employment law bills that could have a significant impact on companies doing business in Hawaii.  Some of those bills include those affecting the following areas of law:

  • Minimum Wage
  • Prevailing Wage Violations for Public Works Projects
  • Successor Employers and Employee Retention
  • Paycheck Withholding Requirements
  • Independent Medical Examinations for WC Cases
  • Social Media Privacy
  • Meal Breaks
  • Sick and Safe Leave
  • Organ Donor Leave
  • Family School Leave
  • Discrimination Against Unemployed Individuals
  • GET Increase

I recently conducted a webinar for HEC members discussing each of these bills and what they could mean for employers. During the webinar, I (a) discussed the proposed changes or additions to Hawaii’s laws and (b) shared my thoughts on the impact that each of these proposed bills could have on companies doing business in Hawaii.  (HEC members can contact me for a copy of the handouts.)

In addition, I was also recently interviewed by the Pacific Business News (“PBN”) on some of the bills we anticipate will be heard during the 2014 legislative session, and their write-up ended up being the cover story for today’s edition of the PBN.  In addition to discussing employment law bills, the PBN article also discussed bills related to other issues affecting Hawaii employers.  PBN subscribers can access the article here:  Major Business Issues Facing the State Legislature in 2014.

On a final note:  To anybody who goes to the Capitol during session, if you see me there (and I will be there often), please feel free to say “Hi.”  Oh, and Happy New Year everybody!

 
Flex Schedules and Telecommuting

A couple weeks ago, I was interviewed by Jenna Blakely from the Pacific Business News (“PBN”) on some of the legal issues employers should consider when allowing employees to work “flex time” or work from home.  The article was printed on PBN’s website this afternoon as part of their cover story on how employers and employees are dealing with work/life balance issues.  You can view the article on PBN’s website here:  The Legal Ramifications of Being a Flexible Employer.

Special thanks for Jenna for the interview and article.