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2018 Legislative Wrap-Up

The 2018 legislative session has come to a close and our State Legislature passed a few bills that affect Hawaii’s labor and employment laws.  Some of the areas of law that have been (or will be) impacted include the following:

  • Increased Workers’ Compensation Reimbursement Rates (for firefighters only)
  • Pay Secrecy and Pay Transparency
  • Paid Family Leave (Study Only; Due September 2019)
  • Medical Cannabis Working Groups

The Hawaii Employers Council has published its Legislative Digest following the Governor’s Veto Deadline.  The digest can be viewed here:  2018 Employment Law Bills after Veto Deadline.

In addition, some of the labor and employment bills that died this year include the following:

  • Notice of Work Schedules
  • Paid Sick Leave
  • Medical Marijuana Job Protection
  • Social Media Privacy
  • Mandatory Meal Breaks
  • Minimum Wage Increases
  • Workers’ Compensation Presumptions
 
2018 Legislative Proposals

The 2018 legislative session is well underway.This year, lawmakers introduced dozens of bills that could impact many different areas of labor and employment law.  For instance, some of these proposals could revise Hawaii law on the following topics:

  • Notice of Work Schedules
  • Paid Sick Leave
  • Hiring Practices
  • Employment Discrimination
  • Paid Family and Medical Leave
  • Pay Secrecy and Transparency
  • Social Media Privacy
  • Workplace TRO’s
  • Independent Contractors
  • Wage Discrimination
  • Minimum Wage
  • Workers Compensation
  • Temporary Disability Insurance

Many of these measures have been heard and passed out by their assigned committees, whereas others may end up on the cutting room floor this week.  The Hawaii Employers Council (“HEC”) will be closely monitoring these bills during the 2018 legislative session.

You can view a listing of bills that HEC will be monitoring here:  2018 Employment Bills Introduced.   An updated list of bills will be issued following the First Crossover deadline.

 
2017 Legislative Wrap-Up

The 2017 legislative session has come to a close.  This year, state lawmakers ended up passing out several measures that will amend various employment laws in Hawaii.  Such laws include workers’ compensation, payment of wages, Hawaii Family Leave Law, occupational safety and health penalties, and others.  In addition, the legislature also passed out bills with regards to the Affordable Care Act, medical marijuana, non-profit corporations, and privacy of medical records.

Each legislative session, I prepare a legislative digest on behalf of the Hawaii Employers Council (“HEC”) that provides a list and description of the bills we think could have an impact on employers.  To view a copy of the latest version of the legislative digest following the end of session, please click on the following link:  Employment Bills after Sine Die.

I also presented a 45-minute webinar discussing several of these bills.  The webinar is available for HEC members only and can be viewed here:  2017 Legislative Wrap-Up (Recorded Webinar).

 
Nationwide Injunction Imposed Against New FLSA Rules

It looks like Christmas has come early for employers all around the country.  On November 22, 2016, a federal judge from Texas issued a nationwide preliminary injunction prohibiting the U.S. Department of Labor from enforcing its new rules regarding the executive, administrative, and professional (“EAP”) exemptions under the Fair Labor Standards Act.

Hooray!

hooray

For all those employers who were going to be converted to non-exempt status solely because of the increased salary threshold, those employees can remain exempt.  For those employees who were set to receive a pay increase due to the new FLSA rules, employers will need to make the tough decision on whether they will still increase employees’ salaries.  Some factors to consider are whether the pay increases have already been implemented or announced, the potential impact on morale, and the company’s budget.

To view a copy of the court’s decision, please click on the following link:  FLSA Rules Preliminary Injunction.

 
Two Lawsuits and Several Bills Challenging the DOL’s New FLSA Rules

UPDATE:  OMG!  Contrary to very-widely-held speculation, a federal district court actually did issue a preliminary injunction against the new FLSA rules!  And, the injunction applies nationwide!  Click here for further details:  Nationwide Injunction Imposed Against New FLSA Rules

———–

This has been a busy couple of weeks for the U.S. Department of Labor’s (“DOL”) new FLSA rules.  First, two lawsuits have been filed in a Texas federal court to seek an order preventing the DOL from enforcing its new overtimes rules.  In addition, a House bill - HR 6094 – is making its way through Congress to postpone implementation of the new FLSA rules for six months.  The new rules are currently set to take effect on December 1, 2016, which is just about two months away.

lawsuit

The first lawsuit was filed by 21 states and argues that the DOL overstepped its authority by raising the salary level for the FLSA’s Executive, Administrative and Professional exemptions (“EAP exemptions”).  The lawsuit argues that, instead of raising the salary level, the DOL should have reexamined the duties of the EAP exemptions.  In addition, the 21 states also challenged the automatic increases that are set to increase every three years “without regard for current economic conditions or the effect on public and private resources.”  Finally, the lawsuit posits that new DOL’s rules violate the Tenth Amendment because employment budgetary matters such as the pay requirements of state employees are subject to state sovereignty.

The second lawsuit was filed by a coalition of business groups, including the National Federal of Independent Businesses (“NFIB”) and several Chambers of Commerce.  This lawsuit argues that setting new salary threshold at an exceedingly high level and scheduling automatic increases both violate the Administrative Procedure Act.

(Both lawsuits have been assigned to Judge Amos Mazzant, who was appointed to the bench by President Barack Obama.  So, that’s not exactly great news…)

Finally, there are several bills pending in Congress that seek either (1) a delay of the new rules or (2) a phase-in of the increased salary threshold over several years.  Specifically, HR 6094 and S. 3462 both seek a six-month delay of the effective date of the new rules and HR 5813 and S. 3464 seek to phase-in the increases over several years.

Recently, the U.S. House of Representatives just voted 241-177 in favor of passing HR 6094.  The bill will now go to the U.S. Senate for consideration.  However, President Obama has previously threatened to veto the measure if it is passed and the Office of Management and Budget issued a statement that “strongly opposes” the bill.

Therefore, despite all these legal challenges to the new FLSA rules, employers should plan to implement whatever changes they deem necessary by the December 1, 2016 effective date.