Hawaii House Bill HB854

Hawaii 2024 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

The proposed legislation aims to amend Chapter 394B of the Hawaii Revised Statutes, reinforcing the importance of existing labor rights during governance changes. If passed, it will require successor employers to honor collective bargaining agreements as long as there are enough employees to necessitate such recognition. The bill complements existing labor regulations by making explicit provisions for employee retention, thereby enhancing the state's labor protections.

Summary

House Bill 854 addresses the rights of employees in the event of a divestiture of a business, specifically focusing on the retention of dislocated workers. The bill mandates that when a successor employer takes over a covered establishment, they are required to hire all incumbent, nonsupervisory, and nonconfidential employees. This ensures job security for workers during transitions of business ownership, potentially reducing unemployment rates in the state of Hawaii.

Contention

Despite the bill's potential benefits, there may be concerns regarding the flexibility it offers to employers. While the legislation protects a majority of incumbent workers, it allows exceptions in cases where the successor's business model significantly deviates from that of the previous employer. Critics might argue that this could create loopholes that undermine worker protections in environments with rapid industry changes. Additionally, opponents may question the financial implications for businesses adjusting to this new obligation, particularly smaller enterprises.