STAND. COM. REP. NO. 186________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 530
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 530 entitled: 

     "A BILL FOR AN ACT RELATING TO EMPLOYMENT DISCRIMINATION,"

begs leave to report as follows:

     The purpose of this bill is to prohibit employers from
requiring an employee or prospective employee to relinquish their
rights under chapters 368 and 378, Hawaii Revised Statutes (HRS),
as a condition of hiring or continued employment.

     The Hawaii Civil Rights Commission, the Hawaii State
Commission on the Status of Women, the Hawaii Women's Legislative
Coalition, and the Hawaii Women Lawyers supported this measure.

     Your Committee finds that this measure will eliminate
interference with rights under the fair employment practices law,
in the form of mandatory arbitration agreements.  Prohibiting
employers from including such a provision in employment documents
or agreements protects the inherent right of an employee to file
a charge or participate in an investigation, hearing, trial, or
other proceeding under chapter 368, HRS.

     Your Committee further finds that mandatory arbitration
agreements tend to prejudice complainants who cannot afford to
move for arbitration to enforce their substantive rights.
Typically, the moving party is required to advance fees in order
to initiate the arbitration process.  In short, those who cannot
afford arbitration are then precluded from seeking legal relief.

 
 
                                 STAND. COM. REP. NO. 186________
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     Your Committee finally finds that the Ninth Circuit Court of
Appeals recently held that the Civil Rights Act of 1991 precludes
mandatory arbitration as a matter of law, and has deemed that
mandatory arbitration is unconstitutional under the United States
Constitution.

     Upon further consideration, your Committee has amended this
measure by prohibiting employers from requiring an employee to
relinquish their right to file or participate in a "civil action
in court" instead of the less inclusive term "trial."

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 530, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 530, H.D.
1, and be referred to the Committee on Judiciary and Hawaiian
Affairs.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair