STAND. COM. REP. NO.  176-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2257

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2257 entitled:

"A BILL FOR AN ACT RELATING TO UNEMPLOYMENT INSURANCE BENEFITS,"

begs leave to report as follows:

     The purpose of this bill is to assist unemployed individuals by allowing those partially unemployed individuals who are employed part-time by a secondary employer while attached to a regular employer that is not offering work to retain unemployment insurance benefits even if the employee voluntarily or involuntary separates from the part-time employment.

     The Hawaii Building and Construction Trades Council, AFL-CIO; Hawaii Government Employees' Association; and ILWU Local 142 testified in support of this bill.  The Department of Labor and Industrial Relations testified in opposition to this measure.

     Currently, individuals who are attached to an employer but separated from that employer because of lack of work may receive "partial" unemployment insurance (UI) benefits.  This exempts that individual from work registration and job search requirements because the individual is obligated to be available for work by the employer the worker is attached to and it is expected that work will be available in a timely manner.  In addition, the claimant may voluntarily seek part-time or full-time employment to supplement or supplant the UI benefits that are being received.

     However, should this individual be separated from employment with the secondary employer, the possibility exists that the individual would be disqualified from receiving any UI benefits.  This measure attempts to correct this issue.

     Your Committee has amended this bill by:

     (1)  Stipulating that an individual shall not be disqualified for benefits for any week in which the individual separates from an employer offering part-time employment even if separation is for good cause;

     (2)  Clarifying that to qualify for the appropriate UI benefits, an individual must be attached to a regular employer; and

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

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2257, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2257, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

KARL RHOADS, Chair