Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Higher Education and Labor, to which was referred S.B. No. 464 entitled:

beg leave to report as follows:

The purpose of this measure is to amend chapter 78, Hawaii Revised Statutes, by adding a new section that would require the Board of Regents of the University of Hawaii to pay a penalty to its employees for late payments of wage.

Your Committees received testimony in support of this measure from the University of Hawaii Student Caucus. Your Committees received testimony in opposition from the University of Hawaii.

This measure attempts to encourage the University of Hawaii to pay it’s employees within one pay period following the designated pay day by penalizing the University $100 for each instance of a violation. According to the UH Student Caucus, it is not unusual for newly hired graduate students, regardless of national origin, to go for months without receiving their first pay check. These graduate students are typically hired to conduct research, serve as teaching assistants, as well as assist with other services as hired by the University.

Your Committees received testimony from the University of Hawaii that non-payment of wages typically is the result of incomplete information provided by the graduate student and other circumstances beyond the control of the University.

In recognition of the fact that the University does not deny that graduate students are paid well beyond a reasonable time frame, but claims it is something that is beyond their control, the Committee would like to encourage that a resolution be found and has amended the effective date of this bill to July 1, 2010.

As affirmed by the records of votes of the members of your Committees on Higher Education and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 464, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 464, S.D. 1, and be referred to the Committee on Ways and Means.