Disallows compensation for physical or mental injury resulting from a disciplinary or other personnel action taken in good faith by the employer.

A BILL FOR AN ACT

SECTION 1. Section 386-3, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) If an employee suffers personal injury either by accident arising out of and in the course of the employment or by disease proximately caused by or resulting from the nature of the employment, the employee's employer or the special compensation fund shall pay compensation to the employee or the employee's dependents as provided in this chapter.

[Accident] "Accident arising out of and in the course of the [employment] employment" includes the wilful act of a third person directed against an employee because of the employee's employment."

2. By amending subsection (c) to read:

"(c) [A claim for mental stress resulting solely from disciplinary action taken in good faith by the employer shall not be allowed; provided that if a collective bargaining agreement or other employment agreement specifies a different standard than good faith for disciplinary actions, the standards set in the collective bargaining agreement or other employment agreement shall be applied in lieu of the good faith standard. For purposes of this subsection, the standards set in the collective bargaining agreement or other employment agreement shall be applied in any proceeding before the department, the appellate board, and the appellate courts.] No compensation shall be allowed for an employee's physical or mental injury if it results from a disciplinary action or other personnel action taken in good faith by the employer."

SECTION 2. This Act does not affect the rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.