Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 755, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize an employer, upon receipt of written authorization by an employee, to provide the employee with an electronic record that contains the employee's total gross and net compensation, deductions, the date of payment, and the pay period covered, in lieu of a printed, typewritten, or handwritten record.

Testimony in support of this measure was submitted by the Department of Labor and Industrial Relations, the Hawaii State Teachers Association, and Verizon Hawaii.

Your Committee finds that under the current law, an employer is only authorized to provide an employee with a printed, typewritten, or handwritten record of payment. However, with the advancements in technology in the workplace, the law must also evolve to accommodate additional forms of transmitting and receiving information. Therefore, your Committee determines that the utilization of electronic payment stubs will provide employers with a cost-effective alternative for the transmission of wage information to those employees who voluntarily request electronic records.

Accordingly, your Committee has amended this measure by:

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. 755, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 755, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.