THE SENATE S.B. NO. 327 THIRTY-THIRD LEGISLATURE, 2025 S.D. 2 STATE OF HAWAII A BILL FOR AN ACT RELATING TO INTERNSHIPS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
THE SENATE S.B. NO. 327
THIRTY-THIRD LEGISLATURE, 2025 S.D. 2
STATE OF HAWAII
THE SENATE
S.B. NO.
327
THIRTY-THIRD LEGISLATURE, 2025
S.D. 2
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO INTERNSHIPS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I SECTION 1. The legislature finds that expanding state‑funded internships to include private-sector positions will benefit the State by promoting economic growth, fostering public-private collaborations, and supporting job creation. State-funded private-sector internships will also create additional opportunities for interns to gain practical work experience and prepare for their future careers. The legislature recognizes that article VII, section 4, of the Hawaii State Constitution requires the legislature to appropriate moneys "for a public purpose". The courts have found that "what constitutes a public purpose is generally a question for the legislature to decide" and that the legislature "is given wide discretion" in this matter. State ex. rel. Amemiya v. Anderson, 56 Haw. 566, 574 (1976). The legislature finds that permitting state‑funded private‑sector internships is in the best interest of the State and serves the public purpose of supporting the health, safety, and welfare of its residents. Accordingly, the purpose of this part is to authorize and appropriate moneys for the department of labor and industrial relations to administer an on-the-job training work experience program for eligible interns. SECTION 2. Chapter 394, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows: "§394-A On-the-job training work experience program; private sector. (a) The department of labor and industrial relations may enter into contracts with employers or registered apprenticeship program sponsors in the private sector to provide on-the-job training to eligible interns. The department may provide to the employers or sponsors up to $20.00 per hour in reimbursements for wages only, but not for fringe benefits or other costs, for the extraordinary costs of training and supervising an intern. The employers or sponsors shall not be required to provide documentation of these extraordinary costs. (b) Eligible employers or sponsors shall demonstrate compliance with Hawaii compliance express or any successor program established to facilitate compliance with section 103D‑310(c). (c) Contracts entered into pursuant to this section shall be limited to a period of twelve weeks, with an extension of up to twelve additional weeks if approved by the director of labor and industrial relations; provided that the term of the internship shall be sufficient to allow the participant to gain relevant skills and experience in the occupation for which training is provided. In determining the appropriate length of the contract, the director shall consider the: (1) Occupation's skill requirements; (2) Intern's existing academic and occupational skill levels; and (3) Intern's prior work experience. (d) The employer or sponsor shall comply with state and federal minimum wage rates and overtime requirements pursuant to chapter 387 and the Fair Labor Standards Act of 1938, as amended. (e) The department of labor and industrial relations shall adopt rules pursuant to chapter 91 and systems, as necessary, to develop and implement the program, including rules and systems allowing the department to: (1) Ensure that participating interns are eligible pursuant to subsection (f) and participating employers or sponsors are eligible pursuant to subsection (g); (2) Ensure that interns are referred by the department to employers or sponsors and not directly by the employers or sponsors; (3) Reimburse employers or sponsors up to $20.00 per hour for wages only for the extraordinary costs of providing intern training and supervision; (4) Develop a training plan for each intern in collaboration with the intern and employer or sponsor; (5) Monitor each intern's progress in the program to ensure that training plan objectives are being met; (6) Consult with interns and on-site supervisors to address any problems affecting the training plan; (7) Terminate an internship, if necessary, due to problems at the worksite caused by either the intern or the employer or sponsor; and (8) Limit employer or sponsor participation to not more than five interns at one time, as tracked by the federal employer identification number of the employer or sponsor. (f) The department of labor and industrial relations shall develop eligibility criteria for interns, including requirements that each intern: (1) Be sixteen years of age or older; (2) Be a Hawaii resident; (3) Be currently enrolled in a public high school or have earned a high school diploma or its equivalent; and (4) If a student or recent graduate of a college or university: (A) Be currently enrolled in an accredited college or university and anticipating the attainment of a degree within one year, or has earned a college or university degree within one year of applying for the internship; and (B) Have a cumulative college grade point average of 2.5 or higher, on a scale of 4.0 or its equivalent. (g) The department of labor and industrial relations shall develop eligibility criteria for employers or sponsors, including requirements that each employer or sponsor: (1) Provide onsite work experience that complies with each intern's training plan and includes the daily supervision, training, and guidance necessary to enable each intern to develop work habits and job‑specific skills that are essential for employment; (2) Pay each intern not less than $20.00 per hour for a maximum of forty hours per week; provided that interns enrolled in two or more college or university courses shall not work for more than twenty hours per week; (3) Provide each intern with a mentor to give on-the-job guidance and answer routine questions about the workplace; (4) Provide interns with the same working conditions as other employees in similar jobs; (5) Ensure that interns do not displace currently employed workers, reduce the hours of those currently employed, infringe on the opportunities for promotion of regular employees, or replace the work of employees who have experienced layoffs; (6) Ensure that interns' on-the-job training does not impair existing contracts for services or collective bargaining agreements; (7) Ensure that the work site, supervisor, and participants are available for monitoring by the department; (8) Ensure that the work site complies with all occupational safety and health standards established under state and federal law; (9) Maintain time sheets and attendance records for each intern and prepare intern evaluations and any other reports required by the department; (10) Consult with and obtain assistance from the department if an intern requires support services to carry out a work assignment effectively; (11) Notify the department on a timely basis if an intern: (A) Is injured at the work site; (B) Is absent without good cause; (C) Performs poorly on job assignments; (D) Refuses to participate in work or work-related activities; or (E) Is not making satisfactory progress in the program or on the job; and (12) Indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided under this section, and procure sufficient insurance to provide this indemnification. (h) The department of labor and industrial relations shall submit an annual report on the program to the legislature no later than twenty days prior to the convening of each regular session. At a minimum, each report shall include: (1) Outcomes and successes of the program; (2) The number of interns who enrolled in the program and exited the program during the previous fiscal year; (3) The names of the private or public sector organizations that the interns were placed at; and (4) Information on the progress of the program. §394-B Placement of interns in state executive branch departments; agencies, or programs; interagency collaboration. (a) The department of labor and industrial relations shall collaborate with the department of human resources development to process all public program applications and place interns in temporary or permanent positions at state executive branch departments, agencies, or programs. (b) Before the first day of each internship, the department of labor and industrial relations shall provide the department of human resources development with: (1) The name of the intern; (2) The state executive branch department, agency, or program to which the intern is assigned; (3) The expected start and end dates of the internship; and (4) Any other relevant information that the department of human resources development may require to assist the intern in pursuing future employment with the state executive branch." PART II SECTION 3. Section 302A-430, Hawaii Revised Statutes, is amended to read as follows: "§302A-430 Coverage for workers' compensation. [Whenever a student participating in a school-approved work-based learning program sponsored by the department of education or the University of Hawaii undertakes to perform work for a private or public employer as part of the student's work-based learning program, whether paid or unpaid, the] The State shall be deemed to be the responsible employer for the purposes of workers' compensation coverage, [that shall be the student's exclusive remedy to the same extent] as provided for in chapter 386 [as against the State and the private employer participating in the program.], when a student or recent graduate performs paid or unpaid work for a private or public employer as part of a school-approved, work-based learning program sponsored by the department of education or university of Hawaii or as part of the on-the-job training work experience program established in section 394-A; provided that workers' compensation coverage for a recent graduate shall lapse on the last day of February following the graduating year or the date the internship ends, whichever occurs earlier." SECTION 4. In codifying the new sections added by section 2 and referenced in section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act. SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 6. This Act shall take effect upon its approval.
PART I
SECTION 1. The legislature finds that expanding state‑funded internships to include private-sector positions will benefit the State by promoting economic growth, fostering public-private collaborations, and supporting job creation. State-funded private-sector internships will also create additional opportunities for interns to gain practical work experience and prepare for their future careers.
The legislature recognizes that article VII, section 4, of the Hawaii State Constitution requires the legislature to appropriate moneys "for a public purpose". The courts have found that "what constitutes a public purpose is generally a question for the legislature to decide" and that the legislature "is given wide discretion" in this matter. State ex. rel. Amemiya v. Anderson, 56 Haw. 566, 574 (1976).
The legislature finds that permitting state‑funded private‑sector internships is in the best interest of the State and serves the public purpose of supporting the health, safety, and welfare of its residents.
Accordingly, the purpose of this part is to authorize and appropriate moneys for the department of labor and industrial relations to administer an on-the-job training work experience program for eligible interns.
SECTION 2. Chapter 394, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§394-A On-the-job training work experience program; private sector. (a) The department of labor and industrial relations may enter into contracts with employers or registered apprenticeship program sponsors in the private sector to provide on-the-job training to eligible interns. The department may provide to the employers or sponsors up to $20.00 per hour in reimbursements for wages only, but not for fringe benefits or other costs, for the extraordinary costs of training and supervising an intern. The employers or sponsors shall not be required to provide documentation of these extraordinary costs.
(b) Eligible employers or sponsors shall demonstrate compliance with Hawaii compliance express or any successor program established to facilitate compliance with section 103D‑310(c).
(c) Contracts entered into pursuant to this section shall be limited to a period of twelve weeks, with an extension of up to twelve additional weeks if approved by the director of labor and industrial relations; provided that the term of the internship shall be sufficient to allow the participant to gain relevant skills and experience in the occupation for which training is provided. In determining the appropriate length of the contract, the director shall consider the:
(1) Occupation's skill requirements;
(2) Intern's existing academic and occupational skill levels; and
(3) Intern's prior work experience.
(d) The employer or sponsor shall comply with state and federal minimum wage rates and overtime requirements pursuant to chapter 387 and the Fair Labor Standards Act of 1938, as amended.
(e) The department of labor and industrial relations shall adopt rules pursuant to chapter 91 and systems, as necessary, to develop and implement the program, including rules and systems allowing the department to:
(1) Ensure that participating interns are eligible pursuant to subsection (f) and participating employers or sponsors are eligible pursuant to subsection (g);
(2) Ensure that interns are referred by the department to employers or sponsors and not directly by the employers or sponsors;
(3) Reimburse employers or sponsors up to $20.00 per hour for wages only for the extraordinary costs of providing intern training and supervision;
(4) Develop a training plan for each intern in collaboration with the intern and employer or sponsor;
(5) Monitor each intern's progress in the program to ensure that training plan objectives are being met;
(6) Consult with interns and on-site supervisors to address any problems affecting the training plan;
(7) Terminate an internship, if necessary, due to problems at the worksite caused by either the intern or the employer or sponsor; and
(8) Limit employer or sponsor participation to not more than five interns at one time, as tracked by the federal employer identification number of the employer or sponsor.
(f) The department of labor and industrial relations shall develop eligibility criteria for interns, including requirements that each intern:
(1) Be sixteen years of age or older;
(2) Be a Hawaii resident;
(3) Be currently enrolled in a public high school or have earned a high school diploma or its equivalent; and
(4) If a student or recent graduate of a college or university:
(A) Be currently enrolled in an accredited college or university and anticipating the attainment of a degree within one year, or has earned a college or university degree within one year of applying for the internship; and
(B) Have a cumulative college grade point average of 2.5 or higher, on a scale of 4.0 or its equivalent.
(g) The department of labor and industrial relations shall develop eligibility criteria for employers or sponsors, including requirements that each employer or sponsor:
(1) Provide onsite work experience that complies with each intern's training plan and includes the daily supervision, training, and guidance necessary to enable each intern to develop work habits and job‑specific skills that are essential for employment;
(2) Pay each intern not less than $20.00 per hour for a maximum of forty hours per week; provided that interns enrolled in two or more college or university courses shall not work for more than twenty hours per week;
(3) Provide each intern with a mentor to give on-the-job guidance and answer routine questions about the workplace;
(4) Provide interns with the same working conditions as other employees in similar jobs;
(5) Ensure that interns do not displace currently employed workers, reduce the hours of those currently employed, infringe on the opportunities for promotion of regular employees, or replace the work of employees who have experienced layoffs;
(6) Ensure that interns' on-the-job training does not impair existing contracts for services or collective bargaining agreements;
(7) Ensure that the work site, supervisor, and participants are available for monitoring by the department;
(8) Ensure that the work site complies with all occupational safety and health standards established under state and federal law;
(9) Maintain time sheets and attendance records for each intern and prepare intern evaluations and any other reports required by the department;
(10) Consult with and obtain assistance from the department if an intern requires support services to carry out a work assignment effectively;
(11) Notify the department on a timely basis if an intern:
(A) Is injured at the work site;
(B) Is absent without good cause;
(C) Performs poorly on job assignments;
(D) Refuses to participate in work or work-related activities; or
(E) Is not making satisfactory progress in the program or on the job; and
(12) Indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided under this section, and procure sufficient insurance to provide this indemnification.
(h) The department of labor and industrial relations shall submit an annual report on the program to the legislature no later than twenty days prior to the convening of each regular session. At a minimum, each report shall include:
(1) Outcomes and successes of the program;
(2) The number of interns who enrolled in the program and exited the program during the previous fiscal year;
(3) The names of the private or public sector organizations that the interns were placed at; and
(4) Information on the progress of the program.
§394-B Placement of interns in state executive branch departments; agencies, or programs; interagency collaboration. (a) The department of labor and industrial relations shall collaborate with the department of human resources development to process all public program applications and place interns in temporary or permanent positions at state executive branch departments, agencies, or programs.
(b) Before the first day of each internship, the department of labor and industrial relations shall provide the department of human resources development with:
(1) The name of the intern;
(2) The state executive branch department, agency, or program to which the intern is assigned;
(3) The expected start and end dates of the internship; and
(4) Any other relevant information that the department of human resources development may require to assist the intern in pursuing future employment with the state executive branch."
PART II
SECTION 3. Section 302A-430, Hawaii Revised Statutes, is amended to read as follows:
"§302A-430 Coverage for workers' compensation. [Whenever a student participating in a school-approved work-based learning program sponsored by the department of education or the University of Hawaii undertakes to perform work for a private or public employer as part of the student's work-based learning program, whether paid or unpaid, the] The State shall be deemed to be the responsible employer for the purposes of workers' compensation coverage, [that shall be the student's exclusive remedy to the same extent] as provided for in chapter 386 [as against the State and the private employer participating in the program.], when a student or recent graduate performs paid or unpaid work for a private or public employer as part of a school-approved, work-based learning program sponsored by the department of education or university of Hawaii or as part of the on-the-job training work experience program established in section 394-A; provided that workers' compensation coverage for a recent graduate shall lapse on the last day of February following the graduating year or the date the internship ends, whichever occurs earlier."
SECTION 4. In codifying the new sections added by section 2 and referenced in section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.
Report Title: DLIR; DHRD; On-the-Job Training Work Experience Program; Internships; Private Sector; State Executive Branch Departments, Agencies, Programs; Workforce Development; Workers' Compensation Coverage Description: Permits the Department of Labor and Industrial Relations to enter into contracts with eligible employers or registered apprenticeship programs in the private sector to provide on‑the‑job training to eligible interns. Requires the Department of Labor and Industrial Relations to collaborate with the Department of Human Resources Development for certain portions of the on-the-job-training work experience program. Provides that the State shall be the responsible employer for purposes of workers' compensation coverage for students or recent graduates in the on-the-job-training work experience program, subject to certain limitations. (SD2) 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; DHRD; On-the-Job Training Work Experience Program; Internships; Private Sector; State Executive Branch Departments, Agencies, Programs; Workforce Development; Workers' Compensation Coverage
Description:
Permits the Department of Labor and Industrial Relations to enter into contracts with eligible employers or registered apprenticeship programs in the private sector to provide on‑the‑job training to eligible interns. Requires the Department of Labor and Industrial Relations to collaborate with the Department of Human Resources Development for certain portions of the on-the-job-training work experience program. Provides that the State shall be the responsible employer for purposes of workers' compensation coverage for students or recent graduates in the on-the-job-training work experience program, subject to certain limitations. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.