Report Title:
Employment Security; Dislocated Workers
Description:
Establishes job security requirements to protect employees when the business for which the employees work is sold or transferred to another employing entity. Effective 7/1/2050. (SD2)
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THE SENATE |
S.B. NO. |
3033 |
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TWENTY-THIRD LEGISLATURE, 2006 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to employment security.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 394B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§394B- Worker retention in the event of a divestiture. (a) In the event of a divestiture of a covered establishment, the successor employer or management entity:
(1) Shall hire all incumbent nonsupervisory and nonconfidential employees, unless otherwise provided in this section;
(2) Shall not require incumbent employees to file employment applications with the successor employer or management entity to be considered for hire;
(3) May conduct pre-hire screening of the incumbent employees not prohibited by law, including but not limited to criminal history record checks executed in accordance with section 378-2.5 and drug screening executed in accordance with chapter 329B; and
(4) May retain less than one hundred per cent of incumbent employees if the new business to be conducted by the successor employer or management entity is substantially dissimilar to the former business; provided that:
(A) If the new business to be conducted by the successor employer or management entity is substantially dissimilar to the former business, or the new business' human resources needs are reduced, resulting in the reduction of employees needed, then the number of employees to be dislocated shall be in direct proportion to the reduction in the total human resources needs of the successor employer's or management entity's business; and
(B) The priority of hiring for the successor employer's or management entity's business shall be based on employee seniority accrued under the former employer's business.
(b) This section shall not be construed to abrogate an employer's right to manage the employer's employees.
(c) An employer or management entity found in violation of this section shall:
(1) Be assessed a penalty of $ ; provided that each day an employer or management entity is found to be in violation of this section shall constitute a separate violation; or
(2) Be required to compensate the dislocated employee for the difference between the employee's salary or wages earned under the employee's former employer and the dislocated employee's unemployment insurance benefits received for the covered period.
Moneys received from penalties assessed under paragraph (1) shall be deposited into the unemployment insurance trust fund.
(d) The director shall adopt rules in accordance with chapter 91 to effectuate this section."
SECTION 2. Section 394B-2, Hawaii Revised Statutes, is amended as follows:
1. By adding a new definition to be appropriately inserted and to read:
""Divestiture" means the transfer of any covered establishment from one employer to another because of the sale, transfer, merger, and other business takeover or transaction of business interests."
2. By amending the definitions of "covered establishment" and "employer" to read:
""Covered establishment" means any industrial, commercial, or other business entity [which] that employs at any time in the preceding twelve-month period[, fifty or more persons.] more than fifty employees.
"Employer" means any [person who,] individual or entity that, directly or indirectly, owns, operates, or has a controlling interest in a covered establishment, excluding the State or any political subdivision thereof."
SECTION 3. Section 394B-9, Hawaii Revised Statutes, is amended to read as follows:
"§394B-9 Notification. An employer in a covered establishment shall provide to each employee and the director written notification of a closing, divestiture, partial closing, or relocation at least sixty days prior to its occurrence."
SECTION 4. Statutory material to be repealed is bracketed
and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.