Bill Text: HI SB270 | 2023 | Regular Session | Amended


Bill Title: Relating To Income.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed - Dead) 2023-03-09 - Referred to LGO, FIN , referral sheet 17 [SB270 Detail]

Download: Hawaii-2023-SB270-Amended.html

THE SENATE

S.B. NO.

270

THIRTY-SECOND LEGISLATURE, 2023

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO INCOME.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that the tip credit authorized by section 387-2, Hawaii Revised Statutes, allows employers to pay certain employees at a rate below the state minimum wage by calculating tips as a portion of the employee's wages.  The legislature further finds that the tip credit increase associated with the recent increase in minimum wage pursuant to Act 114, Session Laws of Hawaii 2022, may be misunderstood, and therefore inconsistently and unfairly applied by employers.  Affected employees who earn less than minimum wage are likely to be afraid of raising this issue to and about their employers.

     The purpose of this Act is to clarify the law on tip credit by:

     (1)  Requiring the department of labor and industrial relations to submit an annual report on the enforcement of the wage and hour law in the State to the legislature that includes, at a minimum, the complaints filed, investigatory actions taken, violations found, and penalties collected; and

     (2)  Requiring the director of labor and industrial relations to establish:

          (A)  Investigation standards that protect the identity of an employee who files a complaint with the wage standards division to report any wage and hour violations by their employer; and

          (B)  An education program for employees and employers on federal and state wage and hour laws, including tip credit and prohibitions against employer retaliation.

     SECTION 2.  Section 371-7, Hawaii Revised Statutes, is amended to read as follows:

     "§371-7  Duties and powers of the department; rules, procedure for varying.  In addition to any other duties and powers as may be conferred upon the department of labor and industrial relations by law, the department shall:

     (1)  File with the governor a written report or reports at times, at least once in each year, and in a form as shall be requested by the governor covering the condition and activities of the department;

     (2)  No later than twenty days prior to the convening of each regular session, submit an annual report on the enforcement of the wage and hour law in the State to the legislature.  The report shall contain, at a minimum, the complaints filed, investigatory actions taken, violations found, and penalties collected;

    [(2)] (3)  Make, modify, and repeal reasonable rules of general application for the protection of life, health, and safety of employees in every employment or place of employment; provided that the rules shall not conflict with any rules of the department of health covering the same subject matter; provided further that rules pertaining to any workers' compensation case arising under chapter 386 shall be adopted or amended as specified in section 386-72; and

    [(3)] (4)  Make, modify, and repeal [such] other reasonable rules of general application as may be necessary to carry into effect this chapter.

     The rules of the department and any amendments thereto, when adopted in accordance with chapter 91, shall have the force and effect of law and shall be enforced in the same manner as this chapter.

     If there are practical difficulties or unnecessary hardships in carrying out a rule, the director of labor and industrial relations, after public hearing, may make a variation from the requirement if the spirit of the rule is observed.  Any person affected by the rule, or the person's agent, may petition for variation, stating the grounds therefor.  The director shall fix a day for a hearing on the petition and give reasonable notice thereof to the petitioner.  A properly indexed record of all variations made shall be kept in the office of the department and shall be open to public inspection.

     Any interested person may obtain a ruling as to the validity or applicability of any rule in the manner provided in chapter 91."

     SECTION 3.  Section 387-5, Hawaii Revised Statutes, is amended to read as follows:

     "§387-5  Duty of director; employees, salaries.  (a)  The director of labor and industrial relations shall enforce this chapter. 

     (b)  The director shall establish investigation standards that protect the identity of an employee who files a complaint with the wage standards division to report any violations under this chapter.

     (c)  The director shall establish a program that educates employees and employers on the federal and state wage and hour laws.  The program shall also include information on the application of the tip credit, complaint procedures, prohibition against employer retaliation, and the penalties for violation.

     (d)  The director may appoint [such] assistants and [such] clerical, stenographic, and other help as may be necessary for the proper enforcement of this chapter subject to any civil service act relating to state employees.  The salaries of all of the foregoing appointees and employees shall be as fixed by law."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on January 1, 2050.


 


 

Report Title:

Tip Credit; Department of Labor and Industrial Relation; Wage and Hour Law; Investigative Standards; Education Program; Annual Report

 

Description:

Requires the Department of Labor and Industrial Relations to submit an annual report on the enforcement of the wage and hour law in the State to the Legislature.  Requires the Director of Labor and Industrial Relations to establish:  (1) investigation standards that protect the identity of an employee who files a complaint with the Wage Standards Division to report any wage and hour violations by their employer; and (2) an education program for employees and employers on federal and state wage and hour laws, including tip credit and prohibitions against employer retaliation.  Effective 1/1/2050.  (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

 

feedback