Honolulu, Hawaii



RE:     H.B. No. 1727

        H.D. 1

        S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 1727, H.D. 1, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to establish the right of certain employees in the State to accrue and use paid sick leave.


     Your Committee received written comments in support of this measure from AFL-CIO, Hawaii Government Employees Association, Hawaii State Teachers Association, ILWU Local 142, International Brotherhood of Electrical Workers Local Union 1260, and three individuals.


     Your Committee received written comments in opposition to this measure from ABC Stores; Centerscale Automation Hawaii, Inc.; Chamber of Commerce Hawaii; Gyotaku Japanese Restaurants; Hawaii Credit Union League; Hawaii Food Industry Association; Hawaii Lodging & Tourism Association; Hawaii Petroleum, Inc.; Hawaii Restaurant Association; Il Gelato Hawaii; Kalapawai Market & Cafes; Kualapuu Market, Ltd.; Maui Chamber of Commerce; Maui Soda & Ice Works, Ltd.; NFIB; Outback Steakhouse; Retail Merchants of Hawaii; SHRM Hawaii; Tiki's Grill & Bar; and three individuals.


     Your Committee received written comments on this measure from the Department of Labor and Industrial Relations; Hawaii State Commission on the Status of Women; Hawaii Appleseed Center for Law & Economic Justice; Hawaii Children's Action Network; IMUAlliance;

ProService Hawaii; Queen's Health Systems; and YWCA Oahu.


     Your Committee notes that some supporters of the measure have raised concerns that the measure is too limited in its application.  More specifically, supporters have noted that the measure exempts employers with fewer than fifty employees from complying with the measure, and that employees must work four hundred eighty hours before paid sick leave benefits accrue.  There is a concern that these limitations will exclude from the protections of the measure a large number of employees, including those who work full-time but do so by working at several part-time jobs.  Some supporters also note that the measure would exempt employers who pay wages that are only slightly higher than the minimum wage from complying with the measure.


     Your Committee acknowledges that, in contrast, some opponents of the measure, many of which are businesses of varying sizes, have raised concerns about the increased costs that the measure may create for businesses and employees.  More specifically, opponents noted that labor costs are already a significant business expense, and additional labor costs combined with the impact of low unemployment make running a business even more challenging.  These challenges may lead businesses to consider cutting jobs, eliminating benefits, abandoning plans for growth, raising prices, or closing altogether.  Opponents express that, to avoid these outcomes, government should take steps to remove obstacles to growth, job creation, and economic stability, rather than adding costs.


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1727, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,