LEGISLATIVE UPDATE

2008 legislative wrap-up

Hawaii's 2008 legislative session resulted in no new laws affecting private employers. There are, however, new laws in effect that public employers will want to know about. Here's a summary of the main developments.

No big surprises

A few new acts relate to public employment, such as House Bill (HB) 2441, which covers student workers in school-to-work programs under the state's workers' compensation coverage, and HB 2710, which addresses reemployment of retired state and county employees.

That outcome was satisfying to employers, which, at the start of the session, feared several bills might have negative to disastrous effects on employment in Hawaii. One of those bills would have eliminated the need for secret-ballot union representation elections if a union obtained authorization cards from 30 percent of the workforce. Another included a successor employer bill that would have required purchasers of Hawaii businesses to retain 100 percent of the seller's existing workforce. Both bills were killed early in the session.

Workers' comp bills vetoed

Employers adamantly opposed several workers' compensation bills because they would have complicated treatment and claim handling and increased the cost of providing coverage. Although the legislature passed some of those bills, they were ultimately vetoed by Governor Linda Lingle.

The vetoed bills include HBs 2386 and 2388, which would have required employers to continue paying for medical treatment and temporary total disability benefits after an employee was released to return to work if the employee decided it was too early to return or wanted additional medical treatment. HB 2929 would have required independent medical examinations and permanent impairment rating examinations to be performed by a physician mutually agreed on by the employee and employer. The three vetoed bills have been proposed numerous times in the past few years and are expected to be reintroduced in the future.

Several bills addressing paid family leave are expected to be introduced next year ― thanks to one significant piece of legislation passed this session. Senate Bill 2523, also known as Act 243, extends a legislative committee on family caregiving. The committee has been directed to explore ways to provide wage replacement benefits to employees who need time off from work to care for a family member with a serious health condition. The Act suggests a number of solutions, including a paid family leave program, income tax credits, additional temporary disability insurance benefits, and unemployment benefits.

A glimpse into the future

Next year's legislature should be interesting because bills such as the "paid family leave" bill were introduced a few years ago when Hawaii's economy was enjoying an upswing with very low unemployment. With increasing fuel costs, declining tourism, and more businesses closing, bills like those should find little appeal. We're hopeful that next year's session will bring more favorable laws to employers and, with any luck, reduce the cost of doing business in Hawaii.

Copyright 2008 M. Lee Smith Publishers LLC

The contents of HAWAII EMPLOYMENT LAW LETTER are intended for general information and should not be construed as legal advice or opinion. To request further information or to comment on an article, please contact David Banks with Cades Schutte LLP at 808-521-9265 or dbanks@cades.com. Readers in need of legal advice should retain the services of competent counsel.