Report Title:

Public Employment

 

Description:

Prohibits the excessive assignment of overtime for the sole purpose of increasing an employee's average final compensation under §88-21, HRS.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

307

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO public employment.

 

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

SECTION 1. Currently, overtime pay is included in the calculation of "average final compensation" as defined in section 88-21, Hawaii Revised Statutes (HRS). The responsibility to assign overtime is delegated to top level managers and administrators who are required to maintain or expand essential services with fewer employees. The situation has given rise to concern that certain employees in anticipation of retirement deliberately assign to themselves or others excessive overtime solely to boost retirement benefits. Obviously, such a practice by employees is improper and should be prohibited. Overtime compensation improperly received must be deducted from the calculation of retirement benefits by the employees' retirement system.

While more drastic proposals have been offered on this matter, the legislature recognizes that there are constitutional limits that prohibit the impairment or diminution of "accrued benefits" in article XVI, section 2, of the State Constitution. Moreover, it would be arbitrary and capricious to punish all beneficiaries for the misdeeds of only certain individuals.

The purpose of this Act is to prohibit the excessive assignment of overtime for the sole purpose of increasing an employee's average final compensation under section 88-21, HRS.

SECTION 2. Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§88- Abusive use of overtime assignments. (a) No officer or employee shall assign oneself or others excessive overtime for the sole purpose of increasing an employee's average final compensation as defined in section 88-21.

(b) Any violation of this section shall be reported to the employees' retirement system and the improper amount of overtime compensation received shall be deducted from the calculation of the employee's average final compensation."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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