Report Title:

Public Employees; Shortage Categories; Established


Establishes a shortage category employment class for public employment purposes. Establishes criteria and review processes for shortage categories. (HB2230 HD2)


H.B. NO.



H.D. 2






relating to shortage categories.



SECTION 1. The purpose of this Act is to enact statewide legislation to restore a public employer's authority to establish shortage categories and adjust hiring rates for recruitment and retention purposes.

SECTION 2. Chapter 76, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"76- Shortage categories. (a) Whenever a labor shortage exists in a class or group of positions in a class, the director may declare the class or group of positions to be a shortage category. The director may review the impact of making the declaration on related classes or groups of positions. If the director finds that it is necessary to preserve internal relationships, the director may declare those other classes or groups of positions as related shortage categories. The director shall review each shortage category periodically, but not less than once every two years, to determine whether the shortage category should be continued. In making this determination, the following procedure shall be followed:

(1) The director shall set the new entry salary of a shortage category at an amount that is fair and reasonable and at which employees can be recruited from the labor market;

(2) The director shall set the new entry salary of a related shortage category in consideration of appropriate internal pay relationships, including the existing step movement plans of the bargaining unit which recognize time in service;

(3) Whenever a new entry salary is determined for a class or group of positions in a class under paragraphs (1) and (2), incumbents thereof who are being paid less than the new entry salary shall have their pay adjusted to an amount that is not less than the new entry salary in a manner determined by the director;

(4) In addition to establishing a new entry rate, the director, if necessary to promote retention of existing incumbents, may provide alternate adjustments to the salaries of incumbents in a shortage category and related shortage category. An adjustment under this paragraph may result in a salary that exceeds the maximum step of the pay range. The director may authorize rates above the maximum if required to match compelling market rates; provided that the rates are not to exceed twelve per cent of the new entry salary;

(5) The director is authorized to provide similar adjustments for positions and employees in the excluded managerial compensation plan;

(6) As a result of the periodic review of each shortage category, the director may adjust salaries established under this subsection. If the director determines that a shortage exists for more than three years, then the class shall be repriced to incorporate the shortage rate. If the director determines that a shortage no longer exists, the director shall reestablish the first step of the appropriate salary range as the entry salary rate for the class or group of positions;

(7) In the event that the new entry salary for a shortage category or related shortage category is subsequently lowered, incumbents shall not have their pay reduced so long as they remain in the same shortage class or group of positions; and

(8) If employees move from their respective shortage or related shortage positions, the director shall adjust their pay appropriately.

(b) The director shall maintain a list of all shortage category determinations under this section and the justifications therefor."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2010.