STAND

STAND. COM. REP. NO. 821

Honolulu, Hawaii

, 2005

RE: H.B. No. 1449

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1449 entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

The purpose of this bill is to amend the workers' compensation formula for computing benefits paid to an injured airline pilot or flight attendant. Specifically, this bill:

(1) Deletes a reference to "part-time" employment in connection with a work week of fewer than 35 hours; and

(2) Clarifies that airline pilots and flight attendants are entitled to weekly workers' compensation benefits based on the average of the actual hours worked per week in the 52-weeks preceding the week in which the injury occurred.

Your Committee received testimony in support of this measure from Hawaiian Airlines and Aloha Airlines. Testimony in opposition of this bill was received from ILWU Local 142 and a concerned individual. The Department of Labor and Industrial Relations commented.

Your Committee finds that airline pilots and flight attendants who work less than 35 hours per week are still considered "full-time" employees under their collective bargaining agreements. For this reason, a recent Hawaii Supreme Court summary disposition order required the workers compensation benefits of these types of employees to be based on a "full-time" minimum work week of 35 hours. Consequently, an injured airline pilot or flight attendant could earn more money while on workers' compensation, than while actually working.

Your Committee finds that this unusual scenario provides a disincentive for this group of airline pilots and flight attendants to promptly return to work. Your Committee believes that this was never the intent of the workers' compensation law.

Your Committee has amended this measure by:

(1) Clarifying that the average weekly wage for employees employed for fewer than 35 hours per week is based on hours worked "per week;"

(2) Deleting references to "full-time" or "part-time" airline workers in connection with the calculation of their workers' compensation benefit;

(3) Providing an effective date of July 1, 2099, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1449, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1449, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

		____________________________ KENNETH HIRAKI, Chair