STAND. COM. REP. NO. 2388

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2313
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.B. No. 2313 entitled: 

     "A BILL FOR AN ACT RELATING TO WAGES AND TIPS OF EMPLOYEES,"

begs leave to report as follows:

     The purpose of this measure is to amend the definition of
wages, eliminate the minimum wage tip credit, and prevent tips
and gratuities from being withheld by or credited to the
employer.

     Testimony in favor of the measure was received from ILWU
Local 142 and 505 members of Unity House, Inc.  Testimony in
opposition to the measure was received from the Department of
Labor and Industrial Relations, Chamber of Commerce of Hawaii,
and the Hawaii Hotel Association.

     Your Committee finds that, under current law, there is
inconsistent treatment of tips as they relate to wages.  For
example, an employer is prohibited from withholding wages, but
not tips.  Yet, under certain circumstances, tips are combined
with wages to satisfy the minimum wage requirement.  This measure
attempts to correct this inconsistency.

     Upon further consideration, your Committee amended the
measure by removing all provisions of the bill except the one to
eliminate the minimum wage tip credit.


 
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                                   STAND. COM. REP. NO. 2388
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2313, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2313,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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