Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 61 entitled:

begs leave to report as follows:

The purpose of this measure is to allow employers to use "electronic pay stubs" upon written authorization from an employee.

Presently, employers are required to furnish each employee on every payday with a legible printed, typewritten, or handwritten record or pay stub that shows, among other things, the:

(1) Employee's total gross compensation;

(2) Amount and purpose of each payroll deduction;

(3) Total net pay or compensation;

(4) Date of the payment; and

(5) Pay period covered.

Employers are also required to maintain and preserve a "hard" or written copy of these records or its equivalent for a period of at least six years.

Your Committee finds that with advancements in technology, many employees enjoy the conveniences and benefits of direct electronic payroll deposits into an employee's bank account. This method of electronic banking, however, must still be accompanied by a "hard copy" of the employee's pay stub.

This bill will enable employers, upon written authorization from an employee, to provide an electronic pay stub in lieu of the hard copy pay stub that is presently required by law. Employees utilizing the electronic pay stub will still have the option of printing a hard copy of their pay stub should they so desire.

Your Committee has amended the bill by making technical amendments that have no substantive effect.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 61, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 61, S.D. 1.