STAND. COM. REP. NO. 569

Honolulu, Hawaii

, 2005

RE: H.B. No. 750

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 750 entitled:

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

begs leave to report as follows:

The purpose of this bill is to protect employees and prospective employees from discrimination by including, as an offense of unlawful discriminatory practice, an employer's use of an individual's credit history as the basis for hiring and termination decisions.

ILWU, Local 142 testified in support of this measure. The Department of Labor and Industrial Relations, Hawaii Civil Rights Commission, Society of Human Resource Management-Hawaii Chapter, The Chamber of Commerce of Hawaii, and Goodsill, Anderson, Quinn & Stifel, testified in opposition to this bill.

Generally, credit histories have no bearing on the ability of an individual to perform on the job. Credit reports also may include misleading or erroneous information on financial situations that may be beyond the control of the individual. Your Committee finds that an employee's or prospective employee's credit history should not be the sole basis for making an employment decision and that use of this information for this purpose should be considered discriminatory.

 

However, your Committee recognizes the concerns that were raised, including whether these provisions are already covered under the Federal Fair Credit Reporting Act. Your Committee also recognizes that some information contained in a credit report may be relevant information for making employment decisions. Your Committee respectfully requests your Committee on Judiciary to look at these issues.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 750 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.

 

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

 

____________________________

KIRK CALDWELL, Chair