STAND. COM. REP. NO. 1488

Honolulu, Hawaii

RE:    H.B. No. 391

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 391, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WAGES AND HOURS ON PUBLIC WORKS,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide flexibility in overtime compensation rates paid to certain workers on public works projects. 

Specifically, this measure establishes that:

(1)  The overtime compensation rate for laborers and mechanics on public works projects shall be set at rates established by a collective bargaining agreement, if applicable; and

(2)  When a collective bargaining agreement establishes the basic hourly rate of pay, the rate of overtime compensation and any other premium rates of pay shall be the rates specified in the collective bargaining agreement.

     Your Committee received written comments in support of this measure from the Department of Labor and Industrial Relations and the Hawaii Construction Alliance.  Your Committee received written comments in opposition to this measure from the Hawaii Chamber of Commerce, General Contractors Association of Hawaii, Hawaii Island Contractors' Association, and Loeffler Construction, Inc.

     Your Committee finds that collective bargaining agreements for laborers and mechanics on public works projects specify overtime rates that may be greater than one and one-half times the basic hourly rate established by law.  This measure will provide flexibility regarding payment of overtime wages at a higher ratio than time-and-a-half and will help to ensure that workers receive properly negotiated wages when working on public works projects.

     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. 391, 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,

________________________________

JILL N. TOKUDA, Chair