Report Title:

Employment Security; Divestiture; Worker Retention

 

Description:

Establishes job security requirements upon the divestiture of a covered establishment. Takes effect July 1, 2050. (SD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

332

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 2

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO EMPLOYMENT SECURITY.

 

 

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. (a) In the event of a divestiture of a covered establishment, the successor employer:

(1) Shall hire all incumbent nonsupervisory and nonconfidential employees, unless otherwise provided in this section;

(2) Shall not require incumbent employees to file employment applications with the successor employer to be considered for hire unless existing employee files are incomplete;

(3) May conduct pre-hire screening of the incumbent employees not prohibited by law, including but not limited to criminal history record checks executed in accordance with section 378-2.5 and drug screening executed in accordance with chapter 329B; and

(4) May retain less than one hundred per cent of incumbent employees if:

(A) The business of the successor employer is substantially dissimilar to the former employer's business; or

(B) The human resource needs of the successor employer are reduced, resulting in the reduction of employees needed;

provided that the number of employees to be dislocated shall be in direct proportion to the reduction in the total human resource needs of the successor employer.

(b) This section shall not be construed to abrogate an employer's right to manage the employer's employees.

(c) An employer found in violation of this section shall pay to compensate the dislocated worker for the difference between the employee's salary or wages earned under the employee's former employer and the dislocated employee's unemployment insurance benefits received for the covered period.

(d) The director shall adopt rules in accordance with chapter 91 to carry out the purposes of this section."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050.