REPORT TITLE:
Salary Periods; Public Employees


DESCRIPTION:
Repeals provisions in section 78-13 that allow the State to delay
payroll to some employees by a full pay period in addition to the
payroll lag of 5 days.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.1326       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO SALARY PERIODS FOR PUBLIC EMPLOYEES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that Hawaii's law does not
 
 2 allow any employer to delay pay to its employees for more than
 
 3 seven days after the end of a pay period.  The legislature
 
 4 reaffirms this policy as fair and sound fiscal practice.  The
 
 5 legislature also finds that the State should not be exempted from
 
 6 the responsibility to pay its employees on a timely basis.  The
 
 7 State currently implements a punitive delay of pay to some
 
 8 employees that it may have overpaid.  Additionally, the State
 
 9 currently delays the pay of all employees hired after July 1,
 
10 1998, for half a month in addition to the "payroll lag".  The
 
11 excessive delays are unfair and are poor business and management
 
12 practice.
 
13      The purpose of this Act is to ensure fair, timely, and
 
14 equitable payment to all employees.  This Act also repeals those
 
15 provisions of section 78-13, Hawaii Revised Statutes, that enable
 
16 the State to engage in unacceptable and abusive payroll delays.
 
17      SECTION 2.  Section 78-13, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "78-13  Salary periods.  [(a)] Unless otherwise provided by
 

 
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 1 law, all officers and employees shall be paid at least
 
 2 semimonthly except that substitute teachers, part-time hourly
 
 3 rated teachers of adult and evening classes, and other part-time,
 
 4 intermittent, or casual employees may be paid once a month and
 
 5 that the governor, upon reasonable notice and upon determination
 
 6 that the payroll payment basis should be converted from predicted
 
 7 payroll to after-the-fact payroll, may allow a one-time once a
 
 8 month payroll payment to all public officers and employees to
 
 9 effect a conversion to after-the-fact payroll as follows:
 
10      (1)  The implementation of the after-the-fact payroll will
 
11           commence with the June 30, 1998, pay day, which will be
 
12           delayed to July 1, 1998;
 
13      (2)  The July 15, 1998, pay day will be delayed to July 17,
 
14           1998;
 
15      (3)  The July 31, 1998, pay day will be delayed to August 3,
 
16           1998;
 
17      (4)  The August 14, 1998, pay day will be delayed to
 
18           August 19, 1998;
 
19      (5)  The August 31, 1998, pay day will be delayed to
 
20           September 4, 1998;
 
21      (6)  The September 15, 1998, pay day will be delayed to
 
22           September 18, 1998; and
 
23      (7)  Thereafter, pay days will be on the fifth and the
 

 
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 1           twentieth of every month.  If the fifth and the
 
 2           twentieth fall on a state holiday, Saturday, or Sunday,
 
 3           the pay day will be the immediately preceding weekday.
 
 4 The implementation of the after-the-fact payroll shall not be
 
 5 subject to negotiation under chapter 89.
 
 6      [(b)  If an employee has been working for the State for at
 
 7 least six months, has no paid leave accumulated, and has an
 
 8 existing salary overpayment balance:
 
 9      (1)  The employee may be paid the employee's salary on the
 
10           same pay dates and for the same pay periods as non-
 
11           salaried employees.
 
12      (2)  Upon accumulation of eighty hours of paid leave, the
 
13           employee shall be paid the employee's salary on the
 
14           same pay dates and for the same pay periods as salaried
 
15           employees.
 
16      (c)  If an employee has been working for the State for at
 
17 least six months and has had at least two incidents of leave
 
18 which results in salary overpayment within the past six months:
 
19      (1)  The employee may be paid the employee's salary on the
 
20           same pay dates and for the same pay period as non-
 
21           salaried employees.
 
22      (2)  If there are no incidents of leave which result in
 
23           salary overpayment for a subsequent four-month period,
 

 
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 1           the employee shall be paid the employee's salary on the
 
 2           same pay dates and for the same pay periods as salaried
 
 3           employees.
 
 4      (d)  The implementation of subsections (b) and (c) shall not
 
 5 be subject to negotiation under chapter 89.
 
 6      (e)  All employees, except those belonging to bargaining
 
 7 units 5 and 7, hired on or after July 1, 1998, shall be paid on
 
 8 the same pay dates and for the same pay periods as non-salaried
 
 9 employees.]"
 
10      SECTION 3.  Statutory material to be repealed is bracketed.
 
11      SECTION 4.  This Act shall take effect upon its approval.
 
12 
 
13                              INTRODUCED BY:______________________