STAND. COM. REP. NO. 352

Honolulu, Hawaii

RE: S.B. No. 1287

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 1287 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPARENCY,"

begs leave to report as follows:

The purpose and intent of this measure is to require food, beverage, and service establishments that accept tips and employ tipped employees to post signs that include certain language explaining their tip allocation practices and the contract information for the Wage Standards Division of the Department of Labor and Industrial Relations and the Wage and Hours Division of the United States Department of Labor.

Your Committee received comments on this measure from the Department of Labor and Industrial Relations and Department of the Attorney General.

Your Committee finds that tip theft is a credible threat to the livelihood of many workers in the State. Tipped employees typically rely on tips for a significant portion of their income, but tips are one of the simplest forms of wage to steal due to the opaque nature of their distribution. This measure protects tipped employees and their earnings by requiring the posting of signage explaining the tip allocation process to customers and employees and listing the contact information to report violations.

Your Committee notes the concern raised by the Department of the Attorney General that this measure establishes new prohibitions without prohibiting retroactive application.

Accordingly, your Committee has amended this measure by:

(1) Inserting a savings clause to prohibit retroactive application;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1287, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1287, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

________________________________

HENRY J.C. AQUINO, Chair