Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 1774, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to allow eligible claimants to receive their weekly unemployment insurance benefit amount, unreduced for earnings received from employment.

This measure also authorizes the use of Reed Act funds to offset anticipated increases in unemployment insurance claims.

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 and the Chamber of Commerce of Hawaii.

Your Committee finds that under the current law, individuals who are eligible for unemployment benefits receive a weekly benefit that is reduced by the amount of their weekly earnings in excess of fifty dollars. In Hawaii, many individuals must hold multiple jobs in order to support themselves and their families. However, if these individuals become eligible for unemployment benefits, due to a loss of one of those jobs, but continue to have earnings from other part-time employment, they are penalized for their employment by receiving a reduced weekly benefit.

Additionally, your Committee finds that the law can act to deter individuals who are eligible for unemployment benefits from seeking gainful employment, either on a part-time basis or at a pay rate that equals a weekly amount that is less than the amount of their weekly benefit. Therefore, your Committee determines that these eligible individuals should be allowed to maximize their employment opportunities and be encouraged to resume work to the fullest extent possible by allowing them to receive their weekly benefit amounts irrespective of any wages earned.

Accordingly, your Committee has amended this measure by changing the effective date of the Act from July 1, 2010 to July 1, 2004.

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 H.B. No. 1774, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1774, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.