Back to Hawaii

HB69 • 2026

RELATING TO A COMPENSATORY TIME CASH-OUT PILOT PROGRAM.

RELATING TO A COMPENSATORY TIME CASH-OUT PILOT PROGRAM.

Budget Labor
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
MATAYOSHI, CHUN, GARRETT, HOLT, KITAGAWA, MARTEN, OLDS, SAYAMA, TAKAYAMA, TAM
Last action
2025-12-08
Official status
Carried over to 2026 Regular Session.
Effective date
Not listed

Plain English Breakdown

The exact amount of funding appropriated for the pilot program is not specified in the official summary or text.

Compensatory Time Cash-Out Pilot Program

This bill establishes a three-year pilot program allowing eligible employees at state correctional facilities to receive up to 75% of their accrued compensatory time off as cash, with the aim of reducing overtime costs and improving attendance.

What This Bill Does

  • Establishes a three-year Compensatory Time Cash-Out Pilot Program for eligible Department of Corrections and Rehabilitation employees working in any state correctional facility.
  • Allows participating employees to receive up to 75% of their accrued compensatory time off as cash at the end of each fiscal quarter, provided they have fewer than 24 hours of compensatory time off during that quarter.
  • Requires the department to submit annual reports on the program's findings and recommendations to the legislature.
  • Establishes rules for implementing the pilot program in agreement with employee representatives.

Who It Names or Affects

  • Employees working at state correctional facilities who are eligible for the Compensatory Time Cash-Out Pilot Program.
  • The Department of Corrections and Rehabilitation, which will manage the program and report on its outcomes.

Terms To Know

Compensatory time
Extra paid time off that employees earn for working beyond their regular hours.
Pilot program
A small-scale trial of a new policy or program to test its effectiveness before full implementation.

Limits and Unknowns

  • The bill does not specify the exact amount of funding appropriated for the pilot program.
  • It is unclear how many employees will participate in the pilot program and what the overall impact on overtime costs and employee burnout will be.

Bill History

  1. 2025-12-08 D

    Carried over to 2026 Regular Session.

  2. 2025-01-28 H

    The committee(s) on LAB recommend(s) that the measure be deferred.

  3. 2025-01-24 H

    Bill scheduled to be heard by LAB on Tuesday, 01-28-25 9:00AM in House conference room 309 VIA VIDEOCONFERENCE.

  4. 2025-01-21 H

    Referred to LAB, PBS, FIN, referral sheet 1

  5. 2025-01-16 H

    Introduced and Pass First Reading.

  6. 2025-01-13 H

    Prefiled.

Official Summary Text

RELATING TO A COMPENSATORY TIME CASH-OUT PILOT PROGRAM.
DCR; Compensatory Time Cash-Out Pilot Program; Appropriations ($)
Establishes a Compensatory Time Cash-Out Pilot Program for eligible employees of the Department of Corrections and Rehabilitation who work in any state correctional facility. Appropriates funds.

Current Bill Text

Read the full stored bill text
HB69

HOUSE OF REPRESENTATIVES

H.B. NO.

69

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to a COMPENSATORY TIME CASH-OUT PILOT program
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
The
legislature finds that the rate of daily absences in high-stress state
positions is becoming increasingly common, as workers call in sick or simply do
not show up for work due to burnout or other related reasons.
�
In the case of the State's correctional
facilities, where a lack of staffing could lead to dangerous conditions,
workers are often required to stay on the job long after their shift has ended,
leading to further burnout and massive overtime costs for the State.

����
The legislature further finds that allowing
employees to cash out part of their accrued compensatory time off, which would
otherwise be paid out to them when they leave or retire, is a way to
incentivize good attendance and improve the overall functionality of the
State's correctional facilities.
�

Additionally, by encouraging workers to report to work, the State can
save money on overtime and reduce overall worker burnout.

����
Therefore, the purpose of this Act is to
establish and appropriate funds for a compensatory time cash-out pilot program
for department of corrections and rehabilitation employees who work in any
state correctional facility.

����
SECTION 2.
�

(a)
�
There is established a
three-year compensatory time cash-out pilot program within the department for
employees who work in any state correctional facility.

����
(b)
�

Participation in the pilot program by department employees shall be
voluntary.
�
Under the pilot program, at
the end of each fiscal quarter, the department shall offer an eligible
employee, as determined by rule, a cash allowance equivalent to a maximum of
seventy-five per cent of the employee's compensatory time off accrued during
that quarter.

����
(c)
�

The department shall submit an annual report of its findings and
recommendations for the pilot program, including any proposed legislation, to
the legislature no later than twenty days prior to the convening of the regular
sessions of 2026, 2027, and 2028; provided that the reports shall identify the
following:

����
(1)
�
The
number of individuals who qualified for the pilot program each quarter;

����
(2)
�
Any
changes to the amount of overtime worked each quarter;

����
(3)
�
The
cost to the department; provided further that the cost includes the total
amount that the department paid out as cash allowances to employees under the
pilot program and does not factor in the costs associated with the changes to
the amount of overtime worked;

����
(4)
�
Data
on the percentages, in ranges of twenty-five per cent of accrued compensatory
time off that employees received as cash allowances under the pilot program;
and

����
(5)
�
Other
information that the department may find relevant to highlight the benefits and
challenges of the pilot program.

����
(d)
�

The department shall, by mutual agreement between the department and the
exclusive representative of any applicable collective bargaining unit,
establish rules to implement the pilot program and determine eligibility
requirements for participation in the pilot program; provided that one of the
eligibility requirements shall be that the employee has fewer than twenty-four
hours of compensatory time off during that quarter.

����
(e)
�

For the purposes of this Act, unless otherwise stated:

����
"Department" means the department
of corrections and rehabilitation.

����
"Pilot program" means the
compensatory time cash-out pilot program.

����
SECTION 3.
�

There is appropriated out of the general revenues of the State of Hawaii
the sum of $ or so
much thereof as may be necessary for fiscal year 2025-2026 and the same sum or
so much thereof as may be necessary for fiscal year 2026-2027 for the
department of corrections and rehabilitation to establish a three-year
compensatory time cash-out pilot program for employees who work in any state
correctional facility pursuant to section 2 of this Act.

����
The sums

appropriated shall be expended by the department of corrections
and rehabilitation for the purposes of this Act.

����
SECTION 4.
�

This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

DCR;
Compensatory Time Cash-Out Pilot Program; Appropriations

Description:

Establishes
a Compensatory Time Cash-Out Pilot Program for eligible employees of the
Department of Corrections and Rehabilitation who work in any state correctional
facility.
�
Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.