STAND. COM. REP. NO. 213-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2757

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Labor & Government Operations, to which was referred H.B. No. 2757 entitled:

"A BILL FOR AN ACT RELATING TO PAID FAMILY LEAVE,"

begs leave to report as follows:

The purpose of this measure is to require the Department of Labor and Industrial Relations to:

(1) By January 1, 2026, establish a Family and Medical Leave Insurance Program and begin collecting payroll contributions to finance payment of benefits; and

(2) By January 1, 2027, start receiving claims and paying benefits under the Program.

Your Committee received testimony in support of this measure from the Office of Wellness and Resilience in the Office of the Governor; one member of the Hawaiʻi County Council; AAUW of Hawaiʻi; Hawaiʻi Association of School Psychologists; Catholic Charities Hawaiʻi; Stonewall Caucus of the Democratic Party of Hawaiʻi; Pride at Work – Hawaiʻi; Hawaiʻi Public Health Association; Rainbow Family 808; Hawaiʻi Hunger Action Network; African American Lawyers Association of Hawaiʻi; We Are One, Inc.; Hawaiʻi Health & Harm Reduction Center; Hawaiʻi Family Caregiver Coalition; Hawaiʻi State Coalition Against Domestic Violence; Hawaiʻi Children's Action Network Speaks!; Democratic Party of Hawaiʻi Education Caucus; Democratic Party of Hawaiʻi; Imua Alliance; A Better Balance; Democratic Party of Hawaii Labor Caucus; AARP Hawaiʻi; The American College of Obstetricians and Gynecologists; Breastfeeding Hawaii; Hawaiʻi State Democratic Women's Caucus; Hawaiʻi Alliance for Progressive Action; Hawaii Appleseed Center for Law & Economic Justice; Chamber of Sustainable Commerce; Mothering Justice; Our Revolution Hawaii; Hawaii State Teachers Association; Hawaiʻi Workers Center; and numerous individuals. Your Committee received testimony in opposition to this measure from the Department of Labor and Industrial Relations; NFIB, Hawaii Chapter; Hawaii Energy Marketers Association; Society for Human Resource Management – Hawaii; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Hawaiʻi Restaurant Association; Tiki's Grill & Bar; and 604 Hospitality Group. Your Committee received comments on this measure from the Department of Budget and Finance; Hawaii Food Industry Association; Grassroot Institute of Hawaii; Family Values @ Work; and one individual.

Your Committee finds that Hawaii's working families are not adequately supported during times of caregiving and illness. While the federal Family and Medical Leave Act allows twelve weeks of unpaid leave to employees who have worked at a business that employs fifty or more employees, the majority of Hawaii's workforce cannot afford to take unpaid leave to care for a new child or attend to the needs of a family member with a serious health condition. This measure ensures that employees in Hawaii are provided family leave insurance benefits when they need to provide care for their families.

Your Committee has amended this measure by:

(1) Changing the eligibility requirements for a covered individual to reflect similar requirements for individuals eligible to receive temporary disability benefits;

(2) Including the State and counties under the definition of "employer";

(3) Including organ donation and termination of pregnancy under the definition of "serious health condition";

(4) Extending the start date by one year in which the Department of Labor and Industrial Relations has to establish a Family and Medical Leave Insurance Program and begin collecting payroll contributions to finance payment of benefits and start receiving claims and paying benefits under the Program;

(5) Specifying that claims shall be paid to a covered individual within two weeks of the start of their family leave;

(6) Authorizing claims to be filed up to forty-five days in advance of the family leave, if anticipation of the family leave is possible;

(7) Adjusting the wage repayment benefit amounts;

(8) Changing the effective date to July 1, 3000, to encourage further discussion; and

(9) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor & Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2757, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2757, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor & Government Operations,

____________________________

SCOT Z. MATAYOSHI, Chair