Report Title:

Public Employment; Furloughs

 

Description:

Protects the rights of public employees by preserving health, retirement, leave, and other benefits if furloughs are implemented in fiscal years 2009 to 2013.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1106

TWENTY-FIFTH LEGISLATURE, 2009

 

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.  The widespread impact of the 2008 global financial crisis has forced the State to confront a projected budget shortfall of unprecedented proportion.  Based on current estimates, and if the State takes no action to reduce expenditures, this deficit is projected to increase to $1,760,000,000 by fiscal year 2010-2011.  In order to reduce the deficit, state agencies have already made deep cuts in their discretionary budgets and are evaluating all options to further reduce their expenditures.

     Employee furloughs could be one means of addressing the budget deficit with the least amount of disruption to public services.  In addition, employee furloughs are a workable and immediate alternative to employee layoffs.  However, as employees will sustain reductions in salary caused by the furloughs, it is important to ensure that the rights, privileges, and benefits accruing to such employees are not altered or otherwise affected by any furlough program.

     Accordingly, it is the purpose of this Act to preserve certain employee rights, privileges, and benefits when an employee is furloughed, and reaffirm the inherent and explicit authority of the governor to institute furloughs.

     SECTION 2.  Definitions.  For the purposes of this Act:

     "Department" means any department, board, commission, or agency, or other body of the state executive branch, including the department of education and the University of Hawaii.

     "Employee" means an employee or officer of a department.

     "Furlough" means the placement of an employee temporarily and involuntarily in a nonpay and nonduty status.

     SECTION 3.  Any furlough of an employee during fiscal years 2008-2009 through 2010-2013 shall not cause or be deemed to cause:

     (1)  A break in the employee's employment;

     (2)  A decrease in the employer's contribution to the Hawaii employer-union health benefits trust fund;

     (3)  A change in the amount of vacation or sick leave earned by the employee;

     (4)  A decrease in the employee's time in service for purposes of the employee's pension, retirement, and deferred compensation plans; and

     (5)  Any change on any right, privilege, or benefit that the employee is entitled to or would have been entitled to by law but for the furlough.

     SECTION 4.  Notwithstanding any other law to the contrary, the governor's inherent and explicit authority to institute furlough is hereby reaffirmed.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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By Request