Report Title:

Employment

 

Description:

Requires successor employers to retain at least 50 percent of incumbent nonsupervisory employees upon the divestiture, sale, or acquisition of a business. (HB1966 HD1(B)

HOUSE OF REPRESENTATIVES

H.B. NO.

1966

TWENTY-FIRST LEGISLATURE, 2002

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO EMPLOYMENT.

 

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

SECTION 1. Chapter 394B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"394B- Worker retention. In the event of a divestiture of a covered establishment, the successor employer shall retain at least fifty percent of incumbent, nonsupervisory employees as defined in section 89-2, of the affected establishment.

SECTION 2. Section 394B-2, Hawaii Revised Statutes, is amended as follows:

1. By adding a new definition to be appropriately inserted and to read:

""Divestiture" means the transfer of any covered establishment from one employer to another because of the sale, transfer, merger, and other business takeover or transaction of business interests.

2. By amending the definitions of "covered establishment" and "employer" to read:

"Covered establishment" means any industrial, commercial, or other business entity which employs at any time in the preceding twelve-month period [fifty or more persons.] more than one hundred employees."

"Employer" means any [person who,] individual or entity that, directly or indirectly, owns, operates, or has a controlling interest in a covered establishment, excluding the State or any political subdivision thereof."

SECTION 3. Section 394B-9, Hawaii Revised Statutes, is amended to read as follows:

"394B-9 Notification. An employer in a covered establishment shall provide to each employee and the director written notification of a closing, divestiture, partial closing, or relocation at least sixty days prior to its occurrence."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2002.