STAND. COM. REP. NO. 739

Honolulu, Hawaii

RE:    S.B. No. 425

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 425, 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 mandate paid sick leave for hourly employees who work for private employers of fifty or more workers.

     Your Committee received written comments in support of this measure from Hawaii State AFL-CIO, ILWU Local 142, the Graduate Student Organization at the University of Hawaii at Manoa, Hawaii Government Employees Association, and two individuals.

Your Committee received written comments in opposition to this measure from the Chamber of Commerce Hawaii, Hawaii Restaurant Association, Hawaii Food Industry Association, Motion Picture Association of America, Big City Diner, Tiki's Grill and Bar, IL Gelato Hawaii, Ruby Tuesday Hawaii and Gyu-Kaku Hawaii, Maui Hotel and Lodging Association, Highway Inn, and Eggs 'n Things.

     The Department of Labor and Industrial Relations and Hawaii Children's Action Network submitted written comments on this measure.

     Your Committee finds that over forty percent of private sector employees cannot take a paid sick day when they are ill or they need to care for an ill child.  Your Committee further finds that requiring large private employers to provide their hourly employees with paid sick leave will encourage sick employees to stay home and recover, which will reduce the spread of disease, increase employee productivity, and help to control healthcare costs.

     Your Committee has amended this measure by:

(1)  Authorizing the parties to a collective bargaining contract to waive the paid sick leave requirements established by this measure if the waiver is clearly and unambiguously stated in a collective bargaining agreement; and

(2)  Making technical nonsubstantive amendments for purposes of style, clarity, and consistency.

     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. 425, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 425, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair