HOUSE OF REPRESENTATIVES

H.B. NO.

1183

TWENTY-SEVENTH LEGISLATURE, 2013

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to public workers.

 

 

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

 


     SECTION 1.  Section 78-12, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsections (e) and (f) to read:

     "(e)  If the indebtedness has occurred as a result of salary or wage overpayment, the disbursing officer shall determine the amount of indebtedness and notify the employee in writing of the indebtedness; provided that, to be an actionable cause of action, the determination and notice to the employee shall be made within two years from the date of the salary or wage overpayment, and not after.  If the employee contests the disbursing officer's determination of indebtedness, the employee may request a hearing pursuant to chapter 91.

     Regardless of whether a contested determination of indebtedness under this subsection is pending, the disbursing officer shall commence immediate recovery of the indebtedness as provided in this subsection.  If the indebtedness is less than or equal to $1,000, the disbursing officer shall immediately deduct from the next payment of salary, wages, or compensation due to the employee any amount up to the total amount of the indebtedness.  If the indebtedness is greater than $1,000, the disbursing officer shall deduct:

     (1)  The first $1,000 immediately from the next payment of salary, wages, or compensation due to the employee; and

     (2)  One-quarter of the salary, wages, or compensation from any subsequent periodic payment normally due to the employee until the indebtedness is repaid in full.

     (f)  [Regardless] Except for indebtedness as a result of salary or wage overpayment, regardless of whether a contested determination of indebtedness is pending, the disbursing officer shall commence immediate recovery of the indebtedness as provided in this subsection.  If the indebtedness is [equal to or] less than or equal to $1,000, the disbursing officer shall immediately deduct from any subsequent periodic payment normally due the employee any amount up to the total amount of indebtedness and for indebtedness greater than $1,000, the disbursing officer shall deduct:

     (1)  An amount agreed to by the employee and the appointing authority, but not less than $100 per pay period; or

     (2)  One-quarter of the salary, wages, or compensation due the employee until the indebtedness is repaid in full.

In addition to paragraph (1), an employee and the appointing authority may agree to offset any remaining amount of indebtedness by applying the current value of appropriate leave or compensatory time credits posted in the employee's respective accounts as balances that would otherwise be payable in cash upon separation from service; provided that credits shall not be applied to any extent that would require a refund of any moneys already deducted or repaid or that would require the payment of any moneys to the employee equivalent to a cashing out of leave or compensatory time credits."

     2.  By amending subsection (h) to read:

     "(h)  If an employee is entitled to contest the determination of indebtedness under a collective bargaining grievance procedure, that procedure shall be used in lieu of a hearing under subsection (e).  A collective bargaining agreement may include overpayment recovery procedures; provided that the parties do not agree on any provision that would be inconsistent with subsections [(f)] (e) and (g)."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Public Workers; Overpayment; Garnishment

 

Description:

Amends section 78-12, HRS, to specify the process that disbursing officers shall follow to immediately recover salary or wage overpayment made to public workers.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.