STAND. COM. REP. NO. 750

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 216

       S.D. 2

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 216, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to redefine "overtime compensation" in the context of public works construction contracts greater than $2,000.

 

     Specifically, this measure:

 

(1)  Establishes the present rate of overtime compensation as the minimum required rate; and

 

(2)  Sets the rate for overtime work as the rate specified in a collective bargaining agreement if the basic hourly rate is based upon a collective bargaining rate.

 

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

 

     Your Committee finds that this measure authorizes the payment of overtime compensation for public works contracts at a higher ratio than "time and a half" if such a rate is contained in an applicable collective bargaining agreement.  The measure will also level the playing field by requiring non-union contractors to pay the same higher rates for overtime as union contractors, who are already paying overtime compensation that is more than the current statutory rate of one and one-half times the prevailing rate.

 

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

 

     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. 216, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 216, S.D. 2.

 

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

 

 

 

________________________________

JILL N. TOKUDA, Chair