THE SENATE S.B. NO. 1523 THIRTY-THIRD LEGISLATURE, 2025 S.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO PRIVATE SECTOR COLLECTIVE BARGAINING RIGHTS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
THE SENATE S.B. NO. 1523
THIRTY-THIRD LEGISLATURE, 2025 S.D. 1
STATE OF HAWAII
THE SENATE
S.B. NO.
1523
THIRTY-THIRD LEGISLATURE, 2025
S.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO PRIVATE SECTOR COLLECTIVE BARGAINING RIGHTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that private sector workers are at risk to lose their collective bargaining rights on the federal level due to the political initiative "Project 2025". Although federal law regarding private sector collective bargaining rights generally preempts state law, state law can supersede federal law in certain situations if it provides higher or better protection. The legislature further finds that the State directly benefits from unionization. In 2023, the United States Bureau of Labor Statistics reported that 24.1 per cent of Hawaii's wage and salary workers were union members, the highest union membership rates in the United States. Unionization directly contributes to the State's gross domestic product by creating higher wages and increased consumer spending. In addition to economic benefits for the State, unionization makes work environments safer, improves health and retirement benefits, and reduces income inequality. The purpose of this Act is to protect the rights of private sector workers in the State by expanding the types of employees protected by the Hawaii Employment Relations Act to include independent contractors and all individuals subject to the jurisdiction of the National Labor Relations Act of 1935, not just those over whom the National Labor Relations Board has declined to exercise jurisdiction. SECTION 2. Section 377-1, Hawaii Revised Statutes, is amended by amending the definition of "employee" to read as follows: ""Employee" includes any person[, other than an independent contractor,] working for another for hire in the State, and shall not be limited to the employees of a particular employer unless the context clearly indicates otherwise. "Employee" includes any individual whose work has ceased solely as a consequence of or in connection with any current labor dispute or because of any unfair labor practice on the part of an employer and who has not: (1) Refused or failed to return to work upon the final disposition of a labor dispute or a charge of an unfair labor practice by a tribunal having competent jurisdiction of the same or whose jurisdiction was accepted by the employee or the employee's representative; (2) Been found to be committing or a party to any unfair labor practice hereunder; (3) Obtained regular and substantially equivalent employment elsewhere; or (4) Been absent from the individual's employment for a substantial period of time during which reasonable expectancy of settlement has ceased (except by an employer's unlawful refusal to bargain) and whose place has been filled by another engaged in the regular manner for an indefinite or protracted period and not merely for the duration of a strike or lockout. "Employee" does not include any individual employed in the domestic service of a family or person at the family's or person's home or any individual employed by the individual's parent or spouse, or any person employed in an executive or supervisory capacity, or any individual employed by any employer employing less than two individuals, or any individual subject to the jurisdiction of the federal Railway Labor Act of 1926 [or the National Labor Relations Act], as amended from time to time. "Employee" includes any individual subject to the jurisdiction of the National Labor Relations Act of 1935, as amended from time to time[, but over whom the National Labor Relations Board has declined to exercise jurisdiction or has indicated by its decisions and policies that it will not assume jurisdiction]." SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii labor relations board to serve the expanded population of protected employees pursuant to this Act. The sums appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act. SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 2050.
SECTION 1. The legislature finds that private sector workers are at risk to lose their collective bargaining rights on the federal level due to the political initiative "Project 2025". Although federal law regarding private sector collective bargaining rights generally preempts state law, state law can supersede federal law in certain situations if it provides higher or better protection.
The legislature further finds that the State directly benefits from unionization. In 2023, the United States Bureau of Labor Statistics reported that 24.1 per cent of Hawaii's wage and salary workers were union members, the highest union membership rates in the United States. Unionization directly contributes to the State's gross domestic product by creating higher wages and increased consumer spending. In addition to economic benefits for the State, unionization makes work environments safer, improves health and retirement benefits, and reduces income inequality.
The purpose of this Act is to protect the rights of private sector workers in the State by expanding the types of employees protected by the Hawaii Employment Relations Act to include independent contractors and all individuals subject to the jurisdiction of the National Labor Relations Act of 1935, not just those over whom the National Labor Relations Board has declined to exercise jurisdiction.
SECTION 2. Section 377-1, Hawaii Revised Statutes, is amended by amending the definition of "employee" to read as follows:
""Employee" includes any person[, other than an independent contractor,] working for another for hire in the State, and shall not be limited to the employees of a particular employer unless the context clearly indicates otherwise. "Employee" includes any individual whose work has ceased solely as a consequence of or in connection with any current labor dispute or because of any unfair labor practice on the part of an employer and who has not:
(1) Refused or failed to return to work upon the final disposition of a labor dispute or a charge of an unfair labor practice by a tribunal having competent jurisdiction of the same or whose jurisdiction was accepted by the employee or the employee's representative;
(2) Been found to be committing or a party to any unfair labor practice hereunder;
(3) Obtained regular and substantially equivalent employment elsewhere; or
(4) Been absent from the individual's employment for a substantial period of time during which reasonable expectancy of settlement has ceased (except by an employer's unlawful refusal to bargain) and whose place has been filled by another engaged in the regular manner for an indefinite or protracted period and not merely for the duration of a strike or lockout.
"Employee" does not include any individual employed in the domestic service of a family or person at the family's or person's home or any individual employed by the individual's parent or spouse, or any person employed in an executive or supervisory capacity, or any individual employed by any employer employing less than two individuals, or any individual subject to the jurisdiction of the federal Railway Labor Act of 1926 [or the National Labor Relations Act], as amended from time to time. "Employee" includes any individual subject to the jurisdiction of the National Labor Relations Act of 1935, as amended from time to time[, but over whom the National Labor Relations Board has declined to exercise jurisdiction or has indicated by its decisions and policies that it will not assume jurisdiction]."
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii labor relations board to serve the expanded population of protected employees pursuant to this Act.
The sums appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.
Report Title: DLIR; HLRB; Hawaii Employment Relations Act; Collective Bargaining; Private Sector Workers' Rights; Labor; Unionization; Protections; Appropriations Description: Expands the types of employees protected by the Hawaii Employment Relations Act to include independent contractors and all individuals subject to the jurisdiction of the National Labor Relations Act of 1935. Appropriates funds. Effective 7/1/2050. (SD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
DLIR; HLRB; Hawaii Employment Relations Act; Collective Bargaining; Private Sector Workers' Rights; Labor; Unionization; Protections; Appropriations
Description:
Expands the types of employees protected by the Hawaii Employment Relations Act to include independent contractors and all individuals subject to the jurisdiction of the National Labor Relations Act of 1935. Appropriates funds. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.