STAND. COM. REP. NO. 494

Honolulu, Hawaii

RE:    S.B. No. 688

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Labor, to which was referred S.B. No. 688 entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYMENT,"

begs leave to report as follows:

     The purpose of this measure is to establish worker retention requirements upon the divestiture of a covered establishment.

     Testimony in support of the measure was submitted by seven organizations.  Testimony in opposition to the measure was submitted by one state agency and three organizations.  Copies of written testimony are available for review on the Legislature's website.

     Your Committee finds that this measure would address the problem of layoffs of employees due to the sale or ownership change of a business and provides for some stability during the transition.

     Your Committee further finds that this measure provides for employees to be treated as valued stakeholders in a business and promotes the fair and respectful treatment of existing employees during the sale or ownership change of a business.

     Your Committee acknowledges the concern that this measure may impact the value of a business and the ability of owners to operate the business.  However, your Committee believes that this measure also provides sufficient protections to successor employers by allowing successor employers to conduct legal, pre-hire screening to ensure a standard of quality among incumbent employees, to retain fewer than the total number of incumbent employees in certain situations, and to retain the right to manage all employees.

     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 S.B. No. 688 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Labor,

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DWIGHT Y. TAKAMINE, Chair