STAND. COM. REP. NO. 1407_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 206
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Labor and Public Employment, to which was
referred S.B. No. 206 entitled: 


begs leave to report as follows:

     The purpose of this bill is to eliminate discretion in the
amount of penalty assessed against an employer who fails to pay
wages in a timely manner by specifying that the penalties
assessed will be in the amount equal to unpaid wages.

     The National Employment Lawyers Association (NELA) and
Consumer Lawyers of Hawaii (CLH) testified in support of this
bill with amendments.

     Upon further consideration, your Committee has amended this
bill by deleting its substance and inserting the substance of a
similar bill, H.B. 102, H.D. 2.  Your Committee notes that H.B.
102, H.D. 2, passed out of the House of Representatives earlier
this session, after public hearings before this Committee and the
Committee on Judiciary and Hawaiian Affairs.

     Your Committee acknowledges the points raised by NELA and
CLH that this bill also apply to pending cases.  NELA and CLH
testified that providing specific and concrete measures of
damages that are not open to debate, will facilitate out-of-court
settlements for pending cases.  Your Committee respectfully
requests that the Committee on Finance review the fiscal
ramifications of this issue.

                                 STAND. COM. REP. NO. 1407_______
                                 Page 2


     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 206, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 206, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public

                                   TERRY NUI YOSHINAGA, Chair