STAND. COM. REP. NO 495

Honolulu, Hawaii

RE:    S.B. No. 216

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committees on Government Operations and Judiciary and Labor, to which was referred S.B. No. 216 entitled:

"A BILL FOR AN ACT RELATING TO WAGES AND HOURS ON PUBLIC WORKS,"

beg leave to report as follows:

     The purpose and intent of this measure is to make overtime compensation one and one-half times the laborer's or mechanic's basic hourly rate plus fringe benefits on government public works construction contracts greater than $2,000; provided that if the Department of Labor and Industrial Relations determines that the prevailing wage is determined by a group represented by collective bargaining, then the overtime compensation and any other premium shall be at the same rates set by the collective bargaining agreement.

     Your Committees received testimony in support of this measure from the Department of Labor and Industrial Relations and Hawaii Construction Alliance.  Your Committees received comments on this measure from the General Contractors Association of Hawaii.

     Your Committees find that unionized contractors currently pay a premium for overtime that is more than one and one-half times the prevailing rate.  This measure will level the playing field by requiring the non-union contractors to pay the same higher rates for overtime as union contractors do for public works projects.

     Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Government Operations and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 216, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 216, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Government Operations and Judiciary and Labor,

____________________________ GILBERT S.C. KEITH-AGARAN, Chair

____________________________ DONOVAN M. DELA CRUZ, Chair