Blog Archives

Payment of Wages
Let’s Talk About Drugs and Money, But Not in the Same Sentence (Quotes in the PBN)

Just recently, the Pacific Business News published a couple short articles where they included my thoughts about what we can expect during the upcoming legislative session.  The first article talked about possible medical marijuana legislation and the second article discussed Hawaii wage and hour law.

With regards to medical marijuana, I mentioned that we can expect to see bills that propose to expand the rights of medical marijuana patients in two ways.  First, medical marijuana is currently available only to individuals who have a debilitating condition, such as cancer, glaucoma, severe pain, or PTSD.  With the growing social acceptance of medical marijuana, we will likely see legislation opening up marijuana to conditions such as anxiety, stress, insomnia, and arthritis.  Second, we might also see measures that provide job protection for users of medical marijuana – meaning that an employer would be prohibited from firing an employee because the employee uses medical marijuana.

With regards to wage and hour law, we might see an increase in the salary threshold for Hawaii wage and hour exemption, which is currently set at $2,000 per month (in other words, an employee who is guaranteed a salary of $2,000 per month is exempt from Hawaii minimum wage and OT requirements, although they still need to comply with federal law).  Such legislation is especially likely in light of the DOL’s proposed increases to the salary basis for the FLSA’s exemptions.

You can read a copy of the articles here:  Medical Marijuana and Wage and Hour Exemption.

 
Hawaii Minimum Wage Now $8.50 Per Hour

Happy New Years everybody and welcome back to work!  This is just a quick reminder that the Hawaii minimum wage increased by 75 cents on January 1, 2016, which makes the new minimum wage in Hawaii $8.50 per hour.  The tip credit is still just 75 cents per hour (assuming the tipped employee earns at least $7.00 per hour in tipped income and wages).

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In addition, the minimum wage is also scheduled to increase twice more in the next two years.  Beginning January 1, 2017, the minimum wage will be $9.25 per hour and on January 1, 2018 it will increase to $10.10 per hour.

For further discussion on the Hawaii minimum wage or tip credit, you can read a helpful guide issued by the Hawaii Department of Labor and Industrial Relations back in 2014:  DLIR Wage and Hour Notice.

 
Quick Reminder: Minimum Wage Just Went Up To $7.75

Hi everybody, the minimum wage just went up!  Yeah, yeah, I get it…old news…you all already know about minimum wage increase. Well, I realize that it’s been discussed ad nauseum, but just in case there are a handful of people out there who forgot to make the requisite changes with their payroll, here’s a quick reminder that the minimum wage has gone up (and will continue to rise) according to the following schedule:

  • January 1, 2015 – $7.75
  • January 1, 2016 – $8.50
  • January 1, 2017 – $9.25
  • January 1, 2018 – $10.10

In addition to the higher minimum wage, there are a couple other things you should know.  First, the tip credit also increased to $0.50 an hour on January 1, 2015 and will tick up to $0.75 an hour on January 1, 2016, provided that the employee earns at least $7.00 above the minimum wage in tipped income and wages.  What does this mean?  Basically, in 2015, employees must make at least 7.50 an hour in tips to qualify for the $0.50 tip credit, which means that employers just lost the $0.25 tip credit they used to have for employees who earn less than $7.50 an hour in tips.  In other words, for employees in low tipped categories who might make just $5-6 an hour in tips, there is no longer a tip credit.

Second, in July 2014, the state DLIR issued a new Wage and Hour that discussed the new minimum wage amounts.  You can get a copy of the new poster here:  July 2014 Wage and Hour Poster.

You can also view the state’s tip credit and minimum wage guide here:  Minimum Wage and Tip Credits.

 
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.