STAND. COM. REP. NO.  184

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 1028

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1028 entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYMENT,"

begs leave to report as follows:

The purpose of this measure is to assist Hawaii's workers.  Specifically, this bill:

(1)  Extends the time an individual's maximum weekly benefit amount will be calculated at 75 percent of the average weekly wage from December 31, 2012, to December 31, 2013;

(2)  Sets, for calendar year 2013, the employer contribution rate at schedule F; and

(3)  Increases the hourly minimum wage of workers to $8 beginning on January 1, 2014; $8.25 beginning on January 1, 2015; and $8.75 beginning on January 1, 2017.

The American Civil Liberties Union of Hawaii; Hawaii Catholic Conference; and a concerned individual supported this measure.  The Hawaii State AFL-CIO supported the intent of this bill.  The ILWU Local 142; Hawai‘i Island Chamber of Commerce; Japanese Chamber of Commerce & Industry of Hawaii; National Federation of Independent Business Hawai‘i; City Mill Company, Ltd.; Gyotaku Japanese Restaurants; and a number of concerned individuals opposed this measure.  The Department of Labor and Industrial Relations; The Chamber of Commerce of Hawaii; Retail Merchants of Hawaii; Island Princess; and a concerned individual provided comments.

     Your Committee recognizes that there were concerns regarding the tip credit and requests that the Committee on Finance examine this issue further, should it decide to hear this measure.

     Your Committee has amended this measure by:

     (1)  Changing the hourly minimum wage:

          (A)  From $8.00 to $7.75 beginning on January 1, 2014; and

          (B)  To $8.75 beginning on January 1, 2016, rather than January 1, 2017; and

     (2)  Making technical, nonsubstantive amendments for the purposes of 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. 1028, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1028, 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,

____________________________

MARK M. NAKASHIMA, Chair