Hawaii House Bill HB854

Hawaii 2023 Regular Session

• Introduced: 1/25/23
• Refer: 1/30/23
• Report Pass: 2/14/23
• Refer: 2/14/23

Caption

Relating To Dislocated Workers.

Impact

Should this bill be enacted, it would significantly influence labor laws in Hawaii, fostering a protective environment for workers facing job displacement due to divestiture. The law would apply to businesses with twenty-five or more employees, effectively covering a substantial segment of the workforce. Furthermore, employers non-compliant with the provisions laid out in the bill may be liable to compensate affected workers for any wage discrepancies experienced relative to their unemployment insurance benefits. This establishes a clear consequence for violating employee rights, aiming to enhance accountability within the private sector.

Summary

House Bill 854 addresses the issue of worker retention in the event of a divestiture of a covered establishment in Hawaii. The bill mandates that successor employers must hire all incumbent, nonsupervisory, and nonconfidential employees when a business is divested, thereby ensuring job security for these workers. It also eliminates the need for incumbent employees to file new employment applications, simplifying the transition process for both the workers and employers. The bill stipulates the recognition of existing collective bargaining agreements if there are sufficient employees in the bargaining unit, thus preserving workers' rights during ownership changes.

Sentiment

The sentiment surrounding HB 854 appears to be supportive among those who favor labor rights and employee protections. Advocates assert that the bill is a step towards ensuring economic stability for workers during transitions that are often tumultuous. However, there might be concerns among some business owners regarding the implications for workforce management flexibility and operational challenges associated with mandatory hiring practices. Therefore, while the general mood is supportive, there exists a level of apprehension regarding business adaptability in the face of these requirements.

Contention

Notable points of contention include the potential restrictions placed on employers’ ability to make hiring decisions based on their business needs. The provision that allows a successor employer to retain less than 100% of incumbent employees if the business is substantially different could be viewed as a loophole, potentially leading to both unintended consequences and exploitation of the bill's provisions. This tension between protecting workers’ rights and preserving employers' management discretion creates a complex debate over the best practices for labor management in Hawaii.