HOUSE OF REPRESENTATIVES

H.B. NO.

2577

TWENTY-SIXTH LEGISLATURE, 2012

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO WAGES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 388-1, Hawaii Revised Statutes, is amended by amending the definition of "wages" to read as follows:

     ""Wages" means compensation for labor or services rendered by an employee, whether the amount is determined on a time, task, piece, commission, or other basis of calculation.  It shall include the:

     (1)  Vacation or personal time off pay earned in accordance with the terms of any written agreement between an employer and employee or under a written policy of the employer; provided that, if the agreement or policy is not in writing, then in accordance with the practice of the employer as substantiated by corroborating evidence;

     (2)  The reasonable cost, as determined by the director under chapter 387, to the employer of furnishing an employee with board, lodging, or other facilities if such board, lodging, or other facilities are customarily furnished by the employer to the employer's employees but shall not include tips or gratuities of any kind[,]; provided that for the purposes of section 388-6, "wages" shall include tips or gratuities of any kind."

     SECTION 2.  Section 388-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The earned wages of all employees shall be due and payable within seven days after the end of each pay period[.]; provided that vacation or personal time off pay earned may be accrued and need not be paid within each pay period in which the vacation or personal time off is earned."

     SECTION 3.  Section 388-3, Hawaii Revised Statutes, is amended to read as follows:

     "§388-3  Employees who are separated from the payroll before paydays.  (a)  Whenever an employer discharges an employee either with or without cause, the employer shall pay the employee's wages in full at the time of discharge or if the discharge occurs at a time and under conditions which prevent an employer from making immediate payment, then not later than the working day following discharge[.]; provided that vacation and personal time off pay earned shall not be required to be paid:

     (1)  If a written agreement or policy exists between an employer and employee that does not require payment upon separation; or

     (2)  If the agreement or policy is not in writing, the practice of the employer, that is substantiated by corroborating evidence, does not require payment upon separation.

     (b)  Whenever an employee quits or resigns, the employer shall pay the employee's wages in full no later than the next regular payday, as provided under section 388-2, either through the regular pay channels or by mail if requested by the employee, except that if the employee gives at least one pay period's notice of intention to quit, the employer shall pay all wages earned by the employee at the time of quitting[.]; provided that vacation and personal time off pay earned shall not be required to be paid:

     (1)  If a written agreement or policy exists between an employer and employee that does not require payment upon separation; or

     (2)  If the agreement or policy is not in writing, the practice of the employer, that is substantiated by corroborating evidence, does not require payment upon separation.

     (c)  When work of an employee is suspended as a result of a labor dispute, or when an employee for any reason whatsoever is temporarily laid off, the employer shall pay in full to the employee not later than the next regular payday, as designated under section 388-2, either through the regular pay channels or by mail if requested by the employee, wages earned at the time of suspension or layoff[.]; provided that vacation and personal time off pay earned shall not be required to be paid:

     (1)  If a written agreement or policy exists between an employer and employee that does not require payment upon separation; or

     (2)  If the agreement or policy is not in writing, the practice of the employer, that is substantiated by corroborating evidence, does not require payment upon separation."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

 

Report Title:

Wages; Definition; Paid Time Off; Vacation

 

Description:

Clarifies the definition of "wages" in the Payment of Wages and Other Compensation Law, chapter 388, Hawaii Revised Statutes, to include any promised paid time off.  Allows vacation and personal time off to be accrued.  (HB2577 HD1)

 

 

 

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