REPORT TITLE:
Paycheck Protection


DESCRIPTION:
Protects employees from paycheck deductions or withholdings they
do not specifically authorize in writing.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           108
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT
Relating to Paycheck Protection



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 89-4, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§89-4 Payroll deductions.  (a)  Consistent with the
 
 4 provisions set forth in Chapter 388 of the HRS, entitled "Wages
 
 5 and Other Compensation", no employer, or other person or entity
 
 6 responsible for the disbursement of funds for payment of wages or
 
 7 salaries, may withhold or divert a portion of an employee's wages
 
 8 or salaries for contributions to political committees or for use
 
 9 as political contributions except upon the employee's specific
 
10 written request.
 
11      [(a)] (b)  Upon receiving from an exclusive representative a
 
12 written statement specifying the amount of regular dues required
 
13 of its members in the appropriate bargaining unit, which the
 
14 representative certifies will not be used for political purposes,
 
15 the employer shall deduct this amount from the payroll of every
 
16 member employee in the appropriate bargaining unit and remit the
 
17 amount to the exclusive representative.  [Additionally, the
 
18 employer shall deduct an amount equivalent to the regular dues
 
19 from the payroll of every nonmember employee in the appropriate
 
20 bargaining unit, and shall remit the amount to the exclusive 
 

 
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 1 representative; provided that the deduction from the payroll of
 
 2 every nonmember employee shall be made only for an exclusive
 
 3 representative which provides for a procedure for determining the
 
 4 amount of a refund to any employee who demands the return of any
 
 5 part of the deduction which represents the employee's pro rata
 
 6 share of expenditures made by the exclusive representative for
 
 7 activities of a political and ideological nature unrelated to
 
 8 terms and conditions of employment.  If a nonmember employee
 
 9 objects to the amount to be refunded, the nonmember employee may
 
10 petition the board for review thereof within fifteen days after
 
11 notice of the refund has been received.]  No such deductions may
 
12 be made from nonmember employees without their specific written
 
13 request.  If an employee organization is no longer the exclusive
 
14 representative of the appropriate bargaining unit, the deduction
 
15 from the payroll of members and nonmembers shall terminate.
 
16      [(b)] (c)  The employer shall, upon written authorization by
 
17 an employee, executed at any time after the employee's joining an
 
18 employee organization, deduct from the payroll of the employee
 
19 the amount of membership dues, initiation fees, group insurance
 
20 premiums, and other association benefits and shall remit the
 
21 amount to the employee organization designated by the employee.
 

 
 
 
 
 
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 1      [(c)] (d)  The employer shall continue all payroll
 
 2 assignments authorized by an employee prior to July 1, 1970 and
 
 3 all assignments authorized under subsection (b) until
 
 4 notification is submitted by an employee to discontinue the
 
 5 employee's assignments."
 
 6      SECTION 2.  Section 388-6, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§388-6 Withholding of wages.  No employer or other person
 
 9 or entity responsible for the disbursement of funds in payment of
 
10 wages or salaries may withhold, divert, deduct, retain, or
 
11 otherwise require to be paid, any part or portion of any
 
12 compensation earned by any employee except where required by
 
13 federal or state statute or by court process or when such
 
14 withholdings, diversions, deductions or retentions are authorized
 
15 in writing by the employee[,].  These prohibitions extend to any
 
16 withholdings, diversions, deductions, or retentions of salary or
 
17 wages for contributions to political committees or for use as
 
18 political contributions.  This prohibition supercedes any other
 
19 contrary statutory provision.  [provided that the] Under no
 
20 circumstances may the following [may not] be so authorized, or
 
21 required to be borne by the employee:
 

 
 
 
 
 
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                                     S.B. NO.           
                                                        
                                                        

 
 1      (1)  Fines;
 
 2      (2)  Cash shortage in a common money till, cash box, or
 
 3           register used by two or more persons; or cash shortage
 
 4           in a money till, cash box, or register under sole
 
 5           control if the employee is not given an opportunity to
 
 6           account for all moneys received at the start of a shift
 
 7           and all moneys turned in at the end of a shift;
 
 8      (3)  Fines, penalties, or replacement costs for breakage;
 
 9      (4)  Losses due to acceptance by an employee of checks which
 
10           are subsequently dishonored if employee is given
 
11           discretion to accept or reject any check;
 
12      (5)  Losses due to defective or faulty workmanship, lost or
 
13           stolen property, damage to property, default of
 
14           customer credit, or nonpayment for goods or services
 
15           received by customer if such losses are not
 
16           attributable to employee's wilful or intentional
 
17           disregard of employer's interest; or
 
18      (6)  Medical or physical examination or medical report
 
19           expenses which accrue due to services rendered to an
 
20           employee or prospective employee, where such
 
21           examination or report is requested or required by the
 
22           employer or prospective employer or required by any law
 
23           or regulation of federal, state or local governments or
 

 
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 1           agencies thereof."
 
 2      SECTION 3.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 4.  This Act shall take effect upon its approval.
 
 5 
 
 6                           INTRODUCED BY:  _______________________