Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 1638 entitled:

begs leave to report as follows:

The purpose of this measure is to provide the Supreme Court or appellate board discretion for awarding costs and reasonable attorney's fees of workers' compensation appeal proceedings if appeal is initiated by an employee and the employee prevails. This measure also sets standards for this discretion.

Testimony in support of this measure was submitted by the Hawaii State AFL-CIO and the ILWU Local 142.

Testimony in opposition to this measure was submitted by the Department of Labor and Industrial Relations.

Your Committee finds that under existing law, if an employer appeals a decision regarding workers' compensation, the costs of the proceedings of the Supreme Court and appellate board of the State, together with reasonable attorneys' fees is assessed against the employer, if the employer loses. However, the financial burden associated with a workers' compensation appeal makes obtaining legal representation extremely difficult for injured employees, thereby providing employers with an unfair advantage in the litigation of claims.

Your Committee believes that placing the authority to grant attorneys' fees and costs associated with a successful appeal by an employee in a workers' compensation case will act to decrease the disparity of power and resources between the employer and employee.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1638 and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Hawaiian Affairs.