REPORT TITLE:
Workers' Compensation


DESCRIPTION:
Reduces from 50% to 25% the ownership requirement for an owner of
a business to be exempt from "employment" under workers'
compensation.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           724
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO WORKERS' COMPENSATION. 


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

 1      SECTION 1.  Section 386-1, Hawaii Revised Statutes, is
 
 2 amended by amending the definition of "employment" to read as
 
 3 follows:
 
 4      ""Employment" means any service performed by an individual
 
 5 for another person under any contract of hire or apprenticeship,
 
 6 express or implied, oral or written, whether lawfully or
 
 7 unlawfully entered into.  It includes service of public
 
 8 officials, whether elected or under any appointment or contract
 
 9 of hire express or implied.
 
10      "Employment" does not include the following service:
 
11      (1)  Service for a religious, charitable, educational, or
 
12           nonprofit organization if performed in a voluntary or
 
13           unpaid capacity;
 
14      (2)  Service for a religious, charitable, educational, or
 
15           nonprofit organization if performed by a recipient of
 
16           aid therefrom and the service is incidental to or in
 
17           return for the aid received;
 
18      (3)  Service for a school, college, university, college
 
19           club, fraternity, or sorority if performed by a student
 

 
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 1           who is enrolled and regularly attending classes and in
 
 2           return for board, lodging, or tuition furnished, in
 
 3           whole or in part;
 
 4      (4)  Service performed by a duly ordained, commissioned, or
 
 5           licensed minister, priest, or rabbi of a church in the
 
 6           exercise of the minister's, priest's, or rabbi's
 
 7           ministry or by a member of a religious order in the
 
 8           exercise of nonsecular duties required by the order;
 
 9      (5)  Service performed by an individual for another person
 
10           solely for personal, family, or household purposes if
 
11           the cash remuneration received is less than $225 during
 
12           the current calendar quarter and during each completed
 
13           calendar quarter of the preceding twelve-month period;
 
14      (6)  Domestic, which includes attendant care, and day care
 
15           services authorized by the department of human services
 
16           under the Social Security Act, as amended, performed by
 
17           an individual in the employ of a recipient of social
 
18           service payments;
 
19      (7)  Service performed without wages for a corporation
 
20           without employees by a corporate officer in which the
 
21           officer is at least a twenty-five per cent stockholder;
 
22      (8)  Service performed by an individual for a corporation if
 
23           the individual owns at least [fifty] twenty-five per
 

 
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                                     S.B. NO.           724
                                                        
                                                        

 
 1           cent of the corporation; provided that no employer
 
 2           shall require an employee to incorporate as a condition
 
 3           of employment; and
 
 4      (9)  Service performed by an individual for another person
 
 5           as a real estate salesperson or as a real estate
 
 6           broker, if all the service performed by the individual
 
 7           for the other person is performed for remuneration
 
 8           solely by way of commission.
 
 9 As used in this paragraph "religious, charitable, educational, or
 
10 nonprofit organization" means a corporation, unincorporated
 
11 association, community chest, fund, or foundation organized and
 
12 operated exclusively for religious, charitable, or educational
 
13 purposes, no part of the net earnings of which inure to the
 
14 benefit of any private shareholder or individual."
 
15      SECTION 2.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 3.  This Act shall take effect upon its approval.
 
18 
 
19                           INTRODUCED BY:  _______________________
 

 
 
 
 
 
 
 
 
 
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