Bill Text: HI HB1814 | 2014 | Regular Session | Introduced
Bill Title: Pay Cards; Direct Deposit; Electronic Transfer; Methods of Wage Payment
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-07-08 - Act 208, 7/2/2014 (Gov. Msg. No. 1318). [HB1814 Detail]
Download: Hawaii-2014-HB1814-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1814 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to payment of wages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 388-2, Hawaii Revised Statutes, is amended to read as follows:
"§388-2
Semimonthly payday[.]; method of payment of wages. (a)
Every employer shall pay all wages due to the employer's employees at least
twice during each calendar month, on regular paydays designated in advance by
the employer, in lawful money of the United States [or], with
checks convertible into cash on demand at full face value thereof[;],
or by direct deposit to the employee's account at a financial institution as
provided in subsection (d); provided that when a majority of an employer's
employees or a majority of the employees in a collective bargaining unit
recognized by an employer or established by law elect, in a secret ballot
election under procedures approved by the director of labor and industrial relations,
to be paid once a month on a regularly scheduled basis, the employees shall be
paid on such monthly basis. The elections shall not be held more frequently
than once in every two years and each election shall be valid for a period of
two years.
(b) The earned wages of all employees shall be due and payable within seven days after the end of each pay period.
(c) The director may, upon application showing good and sufficient reasons, permit an employer to:
(1) Establish regular paydays less frequently than semimonthly provided that the employee shall be paid in full at least once each calendar month on a regularly established schedule;
(2) Pay earned wages within fifteen days after the end of each pay period.
(d) An employer may pay wages due to the employer's employees by electronic funds transfer or similar means of direct deposit to the employee's account at a financial institution; provided that:
(1) The employee has voluntarily authorized, in writing, the direct deposit to the account and financial institution of the employee's choice;
(2) The deposits and accounts of the financial institution selected are insured by the Federal Deposit Insurance Corporation or any other comparable federal or state agency;
(3) The employee may cancel the direct deposit at any time with reasonable notice;
(4) The employer shall provide a pay statement as required under section 388-7(4);
(5) No employee shall be required to pay any costs or fees for the direct deposit; and
(6) No employee may be disciplined or otherwise penalized for authorizing or refusing to authorize direct deposit of wages.
(e) An employer shall not pay wages due to the employer's employees by use of a pay card, debit card, automated teller machine card, or similar means of an electronic payment card onto which an employer, or an entity on an employer's behalf, transfers or loads the employee's wages."
SECTION 2. Section 388-5.5, Hawaii Revised Statutes, is amended to read as follows:
"§388-5.5
Payment of wages by check[.] or direct deposit. Whenever an
employee receives the employee's wages from the employee's employer in the form
of a check or by direct deposit for which insufficient amounts are
available in the bank account of the employer, the employer shall be liable for
any bank's special handling fee which the employee may incur by reason of
negotiating the check[.] or the electronic transfer."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Direct Deposit; Wages; Methods of Wage Payment
Description:
Clarifies that employers may pay wages by direct deposit under certain conditions. Prohibits employers from paying wages by pay cards, debit cards, or similar means of electronic payment card. Makes employers responsible for any fees incurred if an employer has insufficient funds for the direct deposit.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
