STAND. COM. REP. NO. 1383_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1149
                                     S.D. 1
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred S.B. No. 1149, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO ENFORCEMENT OF WAGE LAWS,"

begs leave to report as follows:

     The purpose of this bill is to clarify that attorney's fees
and other costs of the opposing party shall not be assessed
against the Director of Labor and Industrial Relations (Director)
in cases involving the enforcement of these laws, including the
collection of unpaid wages.

     The Department of Labor and Industrial Relations testified
in support of the measure.

     Your Committee finds that under current laws, the Director
is not required to pay the filing fee or other costs incurred in
pursuing the collection of unpaid wages.  This bill serves to
clarify that attorney's fees and costs of the opposing party also
cannot be assessed against the Director in these cases.

     Your Committee has amended this bill by:

     (1)  Deleting its contents and inserting therefor, the
          contents of H.B. No. 1161, H.D. 1, which was heard
          earlier by your Committee, to provide additional
          clarification that the Director is not required to pay
          any fees or costs incurred in pursuing the collection
          of unpaid wages;

 
                                 STAND. COM. REP. NO. 1383_______
                                 Page 2

 

     (2)  Amending section 104-24, Hawaii Revised Statutes (HRS),
          to restructure the penalty provisions so that:

          (a)  They are based on the specific instance of
               violation;

          (b)  A minimum dollar amount is established for the
               fine; and 

          (c)  The fine is assessed for each instance of
               violation;

     and

     (3)  Amending section 104-25, HRS, to clarify that, for a
          first or second violation, in the event of a
          contractor's failure to pay wages found due, failure to
          pay any penalty assessed, or both, penalties will
          include suspension from work on all contracts until all
          such wages and penalties are paid in full;

     (4)  Amending section 104-25, HRS, to clarify that in the
          event of a third violation, penalties will include
          immediate suspension from work on all contracts for a
          period of three years; and

     (4)  Making technical, nonsubstantive amendments for
          purposes of style and clarity.


     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1149, S.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1149, S.D. 1, H.D. 1, and be referred to the Committee on
Judiciary and Hawaiian Affairs.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair