STAND. COM. REP. NO. 867

Honolulu, Hawaii

RE:    S.B. No. 129

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 129, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LABOR,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize employees of large employers to earn paid sick leave.

     Specifically, this measure:

(1)  Requires employers who employ fifty or more employees to allow those employees to earn sick leave at the rate of one hour of paid sick leave for each forty hours worked;

(2)  Authorizes workers to use earned paid sick leave to take time off of work for:

(A)  The worker's medical care;

(B)  The worker's child's or spouse's medical care; or

(C)  Activities and care resulting from family violence or sexual assault.

     Your Committee received written comments in support of this measure from the Democratic Party of Hawaii and Hawaii State AFL-CIO.  Your Committee received written comment in opposition to this measure from Hawaii Food Industry Association, Kauai Chamber of Commerce, Maui Chamber of Commerce, National Federation of Independent Business Hawaii, Society for Human Resource Management Hawaii Chapter, and The Chamber of Commerce of Hawaii.  The Department of Labor and Industrial Relations submitted written comments on this measure.

     Your Committee finds that the finances of low-income families are often affected when the main wage earner is unable to earn income for a few days due to a short-term illness.  While temporary disability insurance protects all wage earners in the State, benefit payments do not start until the eighth day of disability.  Requiring employers to allow workers to earn sick leave that can be applied during qualifying short-term absences will help prevent the loss of income not subject to the benefits of temporary disability insurance.  This measure will also encourage unhealthy workers to stay home and recover, which will help prevent the spread of the flu and other diseases.

     Your Committee has amended this measure by:

(1)  Amending the definition of child to clarify that the qualified legal ward or biological, adopted, foster, or step-child of a service worker is less than eighteen years of age;

(2)  Applying the provisions of this measure to food establishment workers regardless of the number of hours per week worked;

(3)  Removing the exemption for employers that are a business establishment classified in sector 31, 32, or 33 of the North American Industrial Classification System;

(4)  Requiring that sick leave shall be earned only for hours actually worked; and

(5)  Imposing a maximum of eighty hours of earned sick leave that can be carried over for each service worker.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 129, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 129, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair