Report Title:

Employment; Worker Retention; Worker Retention Trust Fund

 

Description:

Establishes job security requirements to protect employees when the business for which the employees work is sold or transferred to another employing entity.  Adds definition of "divestiture".  Creates worker retention trust fund to receive moneys from penalties and to be used to compensate dislocated workers.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1745

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to employment.

 

 

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

 


     SECTION 1.  Chapter 394B, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§394B-A  Worker retention in the event of a divestiture.  (a)  In the event of a divestiture of a covered establishment, the successor employer:

     (1)  Shall hire all incumbent nonsupervisory and nonconfidential employees, unless otherwise provided in this section;

     (2)  Shall not require incumbent employees to file employment applications with the successor employer to be considered for hire;

     (3)  May conduct pre-hire screening of the incumbent employees not prohibited by law, including but not limited to criminal history record checks executed in accordance with section 378-2.5 and drug screening executed in accordance with chapter 329B;

     (4)  May retain less than one hundred per cent of incumbent employees if the nature of the successor covered establishment is substantially dissimilar to the former covered establishment or the human resource needs of the successor employer are reduced, resulting in the reduction of employees needed; provided that:

         (A)  The number of employees to be dislocated shall be in direct proportion to the reduction in the total human resource needs of the successor employer; and

         (B)  The priority of hiring for the successor employer shall be based on employee seniority accrued under the former employer;

     (b)  This section shall not be construed to abrogate an employer's right to manage the employer's employees.

     (c)  An employer found in violation of this section shall:

     (1)  Be assessed a penalty of $      ; provided that each day an employer is found to be in violation of this section shall constitute a separate violation; or

     (2)  Be required to compensate the dislocated employee for the difference between the employee's salary or wages earned under the employee's former employer and the dislocated employee's unemployment insurance benefits received for the covered period.

Moneys received from penalties assessed under paragraph (1) shall be deposited into the worker retention trust fund under section 394B‑B.

     (d)  The director shall adopt rules in accordance with chapter 91 to carry out the purposes of this section.

     §394B-B  Worker retention trust fund; rules.  There shall be created with the treasury of the State the worker retention trust fund to be administered by the department.  Moneys received from penalties assessed under section 394B‑A shall be deposited into the worker retention trust fund.  Moneys in the trust fund shall be expended by the director to compensate dislocated workers under this chapter.  The director shall adopt rules in accordance with chapter 91 to implement the purposes of this section."

     SECTION 2.  Section 394B-2, Hawaii Revised Statutes, is amended by adding a new definition of "divestiture" to be appropriately inserted and to read:

     ""Divestiture" means the transfer of any covered establishment from one employer to another because of the sale, transfer, merger, and other business takeover or transaction of business interests."

     SECTION 3.  Section 394B-12, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§394B-12[]]  Civil penalties.  [Any] Except as provided in section 394B‑A, any employer who fails to conform to the provisions of this chapter shall be liable to each of the employees affected in an amount equal to the value of all their wages, benefits, and other compensation for the three months preceding the closure, partial closure, or relocation of the covered establishment."

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 5.  In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.


     SECTION 7.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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