Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.C.R. No. 78 entitled:

begs leave to report as follows:

The purpose of this measure is to request that the Department of Labor and Industrial Relations (DLIR) investigate instances where employees were discriminated against on the basis of their illness.

Testimony in support of this measure was submitted by the ILWU Local 142, Hawaii State Teachers Association, Hawaii State IBEW, and Hawaii State AFL-CIO. The Director of DLIR submitted comments.

On March 30, 2004, your Committee heard this concurrent resolution in the form as it was introduced, and received testimony regarding instances where employers had taken adverse actions against employees who had legitimately used available sick leave. These actions had been taken under employment policies, and your Committee finds that these actions undermine the sick leave benefits that employees were relying upon.

Your Committee feels that if employers offer a sick leave benefit, employees should be able to use this benefit without fear of reprisal.

While the investigation proposed in this measure would be helpful in curtailing discriminatory practices, it is noteworthy to mention that another measure, Senate Bill No. 469, House Draft 1 [See, House Standing Committee Report No. 1087-04], was approved and reported by your Committee on this very subject.

Thus, your Committee heard a proposed House Draft 1 on April 2, 2004, reflecting the deletion of current contents and the insertion of new language. As amended, the proposed House Draft 1 requests that the Employer-Union Health Benefits Trust Fund and the Employees' Retirement System (ERS) draft proposed legislation to amend Chapters 87A and 88, Hawaii Revised Statutes, to address the buyback of prior contributory service and ten-year eligibility of State, county or legislative employees who left employment before July 1, 1996, and rejoined employment after June 30, 1996.

Supportive testimony was submitted by the Hawaii Government Employees Association. Comments were submitted by the ERS.

Your Committee finds that there is still uncertainty regarding the eligibility for health benefits of government employees who were employed before July 1, 1996, but experienced a break in service. Your Committee feels that the law should clearly express the Legislature's intent that those employees who experienced such a break in service be eligible for health benefits after ten years of service, and the circumstances under which past service may be bought back.

After careful consideration, your Committee has amended the measure by:

Finally, your Committee notes that Senate Bill No. 2355, House Draft 1, a measure which would clarify that a public employee with credited services prior to July 1, 1996, who transfers employment or experiences a break in service before or after July 1, 1996, shall qualify for the retirement health benefits plan as it existed prior to July 1, 1996, was reported earlier this year [See, House Standing Committee Report No. 956-04], and is currently before your Committee on Finance.

It is your Committee's intent that this concurrent resolution serve as a vehicle to facilitate continued discussions on this issue as Senate Bill No. 2355 moves through the legislative process.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 78, as amended herein, and recommends that it be referred to the Committee on Judiciary in the form attached hereto as H.C.R. No. 78, H.D. 1.