REPORT TITLE:
Unemployment; Employer Subsidy


DESCRIPTION:
Creates 4-year employer subsidy program for the unemployed in
which the department of labor and industrial relations and
private employers pay differing proportions of the wages and
employee benefits of an employee who was previously unemployed.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            244         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO UNEMPLOYED PERSONS.



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

 1      SECTION 1.  Chapter 383, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "383-     Employer subsidy program for the unemployed;
 
 5 four-year limit.  (a)  There is established within the department
 
 6 the employer subsidy program for the unemployed, as that term
 
 7 "unemployed" is defined in section 383-1, to encourage the
 
 8 unemployed to secure and maintain private sector employment.  The
 
 9 purpose of the program is to provide a transition for the
 
10 unemployed from unemployment to stable, full-time, unsubsidized
 
11 employment in the private sector.
 
12      (b)  Under this program, a private employer who employs an
 
13 unemployed individual full-time after the effective date of this
 
14 Act, shall be required to pay the employee a reduced proportion
 
15 of the employee's normal wage and employee benefits, depending on
 
16 the year of employment; provided that the normal wage shall not
 
17 be less than the minimum wage in the State.  The department shall
 
18 pay the balance of the employee's normal wage or employee
 
19 benefits, depending on the year of employment.  Under the
 

 
Page 2                                         244         
                                     H.B. NO.           
                                                        
                                                        

 
 1 program:
 
 2      (1)  In the first year of employment, the private employer
 
 3           shall pay the employee fifty per cent of the employee's
 
 4           normal wage.  The department shall pay the balance of
 
 5           the employee's normal wage; provided that the
 
 6           department's share shall not exceed the unemployment
 
 7           benefit payment amount the unemployed individual is
 
 8           otherwise entitled to receive from the unemployment
 
 9           compensation fund under part II.  In addition, the
 
10           department shall pay the cost of the employee's
 
11           employee benefits including:
 
12           (A)  Unemployment insurance pursuant to chapter 383;
 
13           (B)  Temporary disability insurance pursuant to chapter
 
14                392; and
 
15           (C)  Prepaid health care insurance pursuant to chapter
 
16                393;
 
17      (2)  In the second year, the private employer shall pay the
 
18           employee seventy-five per cent of the employee's normal
 
19           wage.  The department shall pay the balance of the
 
20           employee's normal wage; provided that the department's
 
21           share shall not exceed the unemployment benefit payment
 
22           amount the unemployed individual is otherwise entitled
 
23           to receive from the unemployment compensation fund
 

 
Page 3                                         244         
                                     H.B. NO.           
                                                        
                                                        

 
 1           under part II.  The private employer and the department
 
 2           shall each pay fifty per cent of the cost of the
 
 3           employee's employee benefits, as described in paragraph
 
 4           (1); and
 
 5      (3)  In the third and fourth years, the private employer
 
 6           shall pay the employee seventy-five per cent of the
 
 7           employee's normal wage.  The department shall pay the
 
 8           balance of the employee's normal wage; provided that
 
 9           the department's share shall not exceed the
 
10           unemployment benefit payment amount the unemployed
 
11           individual is otherwise entitled to receive from the
 
12           unemployment compensation fund under part II.  The
 
13           private employer shall pay seventy-five per cent of the
 
14           cost of the employee's employee benefits, as described
 
15           in paragraph (1), and the department shall pay the
 
16           balance.
 
17      (c)  Each private employer who agrees to participate in this
 
18 program shall:
 
19      (1)  Employ each unemployed individual hired under this
 
20           program for at least two years;
 
21      (2)  Offer to each participant a full-time job that pays at
 
22           least the minimum wage in Hawaii;
 
23      (3)  Offer to each participant during the period of
 

 
Page 4                                         244         
                                     H.B. NO.           
                                                        
                                                        

 
 1           employment work experience that may include training
 
 2           and educational activities as an integral part of the
 
 3           work performed and that realistically contributes to a
 
 4           participant's chance of maintaining continued permanent
 
 5           employment;
 
 6      (4)  Not displace regular employees who are not unemployed
 
 7           individuals hired under this section;
 
 8      (5)  Not discriminate against or treat a participant placed
 
 9           in a job differently from a regular employee not hired
 
10           under this section and shall apply standard employment
 
11           practices equally to all employees in the employer's
 
12           employment, including the provision of prior verbal and
 
13           written notice to an employee of any work deficiency
 
14           that constitutes reasonable cause for termination; and
 
15      (6)  Comply with all state and federal labor and
 
16           unemployment compensation laws."
 
17      SECTION 2.  New statutory material is underscored.
 
18      SECTION 3.  This Act shall take effect upon its approval.
 
19 
 
20                           INTRODUCED BY:  _______________________