The proposed amendment to Section 388-1 of the Hawaii Revised Statutes will redefine the term 'employer' to explicitly include state and county entities, thereby holding them accountable for failing to pay employees on time. The changes emphasize that administrative penalties of at least $500 will apply to these employers for non-compliance, alongside back pay and incurred damages at a specified interest rate. This legislative move is intended to maintain fairness and consistency in employment practices across different employer types.
Summary
Senate Bill 43 aims to enhance the accountability of state and county employers regarding the timely payment of wages to employees in Hawaii. This bill builds upon the existing legislation established by Act 135 in 2017, which set requirements for wage payment timelines and penalties for late payments. The current amendment seeks to include state and county employers under the same obligations faced by private sector employers, thereby ensuring that all entities responsible for employee compensation adhere to the same standards.
Contention
Notable points of contention may arise around the implications of this bill for state and county budget allocations, as well as the operational adjustments required to comply with stricter wage payment timelines. Some stakeholders could argue that the added financial responsibilities may burden state and county budgets, potentially impacting other areas of public service funding. Conversely, proponents of the bill will advocate for fair treatment of employees across all sectors, highlighting that timely wage payment is a fundamental labor right and essential for the financial stability of workers.