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Payment of Wages
Quote in Hawaii Business Magazine Article on Paycards

The August 2014 issue of Hawaii Business Magazine contains an article discussing a new law that was passed from the 2014 legislative session which modernizes Hawaii’s payment of wages law by clarifying that employers may pay their employees’ wages by direct deposit or paycards under certain circumstances.   The author of the article, Alex Bitter, and I had a lengthy conversation about the new law, and he ended up quoting me a couple of times for the article.

Under Hawaii’s old law, employers were only permitted to pay wages via “cash” or “check.”  (Technically, the DLIR previously authorized the payment of wages via direct deposit and paycards, but that authorization came from the department’s administrative authority and did not actually amend Hawaii’s law.  Rather, it simply provided the department’s interpretation of Hawaii’s payment of wages law.)

This new law, Act 208, expressly authorizes employers to pay employees via direct deposit or paycards, if certain conditions are met.  For direct deposit, the employer must comply with six different requirements, including obtaining voluntary authorization in writing, using a financial institution that is insured by the FDIC or comparable agency, allowing the employee to cancel the direct deposit at any time, providing a pay statement to the employee, and not requiring the employee to pay any costs or fees for the direct deposit.

For paycards, employers must comply with 12 different requirements, including providing a notice to employees of paycard conditions, accepting responsibility for fees assessed against the employee that are outside the paycard fee schedule, and allowing employees the ability to make at least three free withdrawals on the card (at least one of which permits withdrawal of the full amount of the employee’s net wages).

You can read a copy of the new law here:  Act 208.  You can also read a copy of the Hawaii Business Magazine article here:   New Rules Make Paycards More Costly for Companies.

Finally, here is a picture from the bill signing ceremony where Governor Abercrombie signed Act 208 into law.  (That’s me, just behind and to the right of the Governor…)

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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.

 
2014 Legislative Session: The End is Near(ing)

Let the conference games begin!

Just last week, we passed the Second Crossover deadline, which is the date that the Senate must complete its review of bills submitted by the House of Representatives, and vice versa.  Bills that have survived the Second Crossover deadline are now either (a) sent to conference or (b) sent to the Governor for his review/approval/veto.

At this point in the legislative session, there are still several bills remaining that would have an impact on how employers conduct business here in Hawaii.  Such bills include measures that address:

  • Minimum Wage
  • Payment of Wages
  • Temporary Disability Insurance
  • Workers’ Compensation
  • Healthcare Issues
  • Smoking in the Workplace
  • Criminal Background Checks
  • And others…

As I’ve noted in the “Running Updates” post here, the HEC Legislative Digest following Second Crossover is now available for viewing on the Legislative Updates section of the HEC Website.   In addition, HEC members can also access a Highlights article that discusses several of these key measures in more depth.

Conference hearings will begin this week.  As the Senate and House wrestle over the language of the pending bills, it will be interesting to see what type of concessions are made by either side and what type of legislation is ultimately passed.

 
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!