Blog Archives

Wage and Hour Law
Session Ends; HEC Legislative Digest Updated After Adjournment Sine Die

The long days and late nights at the Capitol are over, and the 2013 Legislative Session has come to an end.

The Hawaii Employers Council (“HEC”) has an updated Legislative Digest for bills that were passed by the Legislature during the 2013 legislative session.  Fortunately for employers, only a few employment-related bills survived this legislative session.  A quick summary of the fate of employment bills from this year is as follows…

Bills that have already been signed into law by the Governor include:

  • Notice Period for UI Appeals Hearings
  • Pay Records and Pay Stubs

Bills that have been sent to the Governor for his approval (or veto) include:

  • Breastfeeding Break Time
  • Workers’ Compensation (“WC”) Medical Fee Schedule Study
  • Definition of “Small Employer” for Health Insurance

Bills that did not pass this year include:

  • Minimum Wage
  • Successor Employers and Employee Retention
  • Paycheck Withholdings for Restitution Cases
  • Organ Donor Leave
  • Social Media Password Privacy
  • Unemployment Insurance Contribution Rates Changes
  • Paid Sick and Safe Leave
  • Elimination of IMEs for WC Cases
  • Meal Breaks
  • Discrimination against Unemployed Individuals
  • Abusive Workplaces
  • GET Increase

In the next couple months, I will be giving several presentations on the 2013 legislative session, including HEC’s 2013 Legislative Update on June 21, 2013.  I will also be doing in-house presentations for several of HEC’s members and industry roundtable groups.  If you are able to join us at any of those presentations (and would like to find out what “OTBD” means), I hope to see you there.

To view the updated Legislative Digest, as well as an article highlighting several of the bills mentioned above, you can visit HEC’s website here:  HEC Offers Final Bill Summary for 2013 Session.

 
Minimum Wage Bill Dies At 11th Hour and 45th Minute

Wow.  In a surprising turn of events last night, the legislature shelved a bill that would have resulted in several increases to the state’s minimum wage over the next several years.  Thus, the state’s minimum wage will remain at $7.25, at least for another year.

Throughout the entire 2013 legislative session, it was almost a certainty that the legislature was going to pass a bill raising the state’s minimum wage.  At the beginning of session, both the House and Senate introduced several bills that proposed an increase to the state’s minimum wage.  In addition, Governor Abercrombie proposed a minimum wage increase in his State of the State address.  Finally, even President Obama has proposed an increase to the minimum wage (at the federal level.)  Therefore, on the issue of an increase to the minimum wage, it appeared the question was not “if” but rather “when, and by how much?”

Towards the end of the 2013 legislative session, one bill relating to the minimum wage – SB 331 SD2 HD1 – remained.  This bill was introduced by the Senate, amended twice by the Senate, and then amended once by the House.  The latest version of the bill proposed an increase of $0.50 for the next three years (effective January 1, 2014, 2015 and 2016), and then a $0.25 increase on January 2017.  Thus, the proposed minimum wage scale was as follows:

  • January 1, 2014 – $7.75
  • January 1, 2015 – $8.25
  • January 1, 2016 – $8.75
  • January 1, 2017 – $9.00

Unlike former versions of this bill (and some other bills), the latest version of this bill did not tie future increases to the minimum wage with inflation.  The bill also had a blank ($___) amount for the state’s tip credit, which is currently just $0.25.

During conference, the Senate and House Conference Committee members met on SB 331 HD1 five times.  The last meeting occurred last night, Friday, April 26, 2013 at 5:45 pm, just 15 minutes before the legislature’s self-imposed deadline for passing all bills out of conference.  At that final meeting, House Conference Chair Mark Nakashima noted that (a) the proposed minimum wage increase signified a 24% increase from the current minimum wage and (b) the parties had spent 90-95% of their time on discussions over the proper amount of the tip credit, and as a result, were unable to reach a resolution on the amount and timing of the minimum wage increases.

In response, Senate Conference Chair Clayton Hee said it was a “damn shame” that they could not reach agreement on the minimum wage bill.

 
HEC Legislative Digest Updated After First Crossover

The Hawaii Employers Council has an updated Legislative Digest, following First Crossover.  Some of the bills that are still alive address the following areas of law:

  • Successor Employers and Employee Retention
  • Social Media Privacy for Employees and Job Applicants
  • Breastfeeding for Employees
  • Paid Leave for Organ, Bone Marrow, or Stem Cell Donation
  • Minimum Wage Increases
  • Workers’ Compensation Medical Fee Schedule Increases

If you would like to view the Legislative Digest, you can view a copy here:  HEC Legislative Digest.

 
HEC Legislative Digest Now Available

Each state Legislative session, the Hawaii Employers Council prepares a Legislative Digest summarizing bills that may be of interest to Hawaii employers.  This year, the bills covered include those in the following categories:

  • Employment Practices and Employment Rights
  • Hawaii Family Leave Law
  • Wage and Hour – Minimum Wage
  • Wage and Hour – Miscellaneous
  • Unemployment Insurance
  • Workers’ Compensation
  • Health and Insurance
  • Public Employees
  • Public Contracts
  • Government Agencies
  • General Excise Tax; Tax Credits
  • Miscellaneous

If you would like to view the Legislative Digest, you can view a copy here:  HEC Legislative Digest.

 
Federal Judge Strikes Down Hawaii’s “Sick Leave Law”

On New Years Eve, U.S. District Court Judge Susan Oki Mollway issued an order ruling that Hawaii’s “sick leave law” – as passed during the 2011 state legislative session – was unlawful.

As background, in 2011, the State of Hawaii passed the “sick leave discrimination” law, which would prevent unionized employers with 100 or more employees from discriminating against an employee for using accrued and available sick leave.  Specifically, Act 118 from 2011 amended Section 378-32  to provide as follows:

(b)  It shall be unlawful for an employer or a labor organization to bar or discharge from employment, withhold pay from, or demote an employee because the employee uses accrued and available sick leave; provided that:

(1)  After an employee uses three or more consecutive days of sick leave, an employer or labor organization may require the employee to provide written verification from a physician indicating that the employee was ill when the sick leave was used;

(2)  This subsection shall apply only to employers who:

(A)  Have a collective bargaining agreement with their employees; and

(B)  Employ one hundred or more employees;

and

(3)  Nothing in this subsection shall be construed to supersede any provision of any collective bargaining agreement or employment benefits program or plan that provides greater employee benefits or rights.”

In a lawsuit entitled Hawaii Pacific Health, et. al. v Dwight Takamine, DLIR, several Hawaii employers sued the Hawaii Director of Labor to challenge the validity of this new law.  Their attorneys argued that that it this new state law (1) was preempted by Federal law and (2) violated the equal protection rights of unionized employers.  Judge Mollway agreed with both arguments, and struck down the law.

Specifically, the judge noted that the sick leave discrimination law was attempting to regulate conduct that should be “left to the control of economic forces.”  In other words, this was the type of issue that should be left to collective bargaining between a union and employer.  Additionally, the court also ruled that the law treated unionized employers less favorably than non-unionized employers.  Therefore, the law violated the equal protection rights of unionized employers.

The court set a hearing for April 15, 2013 to determine whether she would invalidate the entire law, or just the portion that referred to unionized employers.  (She also indicated an inclination, however, to strike down the entire law.)

You can read Judge Mollways decision here:  HPH v. Takamine.  You can view the original bill that led to the sick leave discrimination law here:  Sick Leave Bill.