RELATING TO PUBLIC EMPLOYEE COMPENSATION.

Budget Labor

Active

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

Sponsor: GARRETT
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The bill summary does not specify exact amounts for appropriations, leaving this detail uncertain.

Public Employee Pay Schedule Changes

This bill changes the payroll system for public officers and employees from an after-the-fact schedule to a predicted schedule, makes this change non-negotiable under Chapter 89 of Hawaii Revised Statutes, and appropriates funds for six full-time equivalent positions and conversion costs.

What This Bill Does

Changes the way public officers and employees are paid from an after-the-fact system to a predicted payroll schedule.
Makes sure that this new pay schedule cannot be negotiated under Chapter 89 of Hawaii Revised Statutes.
Appropriates funds for six full-time equivalent positions to perform tasks related to payroll processing, including training, monitoring, auditing, overpayment analysis, and collection.
Provides money to cover the costs of changing from an after-the-fact to a predicted payroll system.

Who It Names or Affects

Public officers and employees in Hawaii.

Terms To Know

Predicted Payroll Schedule: A pay schedule where payments are planned ahead of time instead of being calculated after the work is done.
After-the-Fact Payroll Schedule: A pay schedule where payments are made based on actual hours worked or services provided, rather than a pre-planned schedule.

Limits and Unknowns

The bill does not specify the exact amount of money to be appropriated for new positions and conversion costs.
It is unclear what specific tasks beyond training and auditing the six full-time equivalent positions will perform.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment changes the payroll schedule for public officers and employees from an after-the-fact system to a predicted system, effective July 1, 2026.

Public officers and employees will be paid according to a predicted payroll schedule instead of an after-the-fact schedule starting August 5, 2026.
The governor can allow a one-time monthly payment for all public officers and employees if needed to convert from predicted to after-the-fact payroll.
Funds are appropriated for fiscal years 2025-2026 and 2026-2027 to cover the costs of converting employees' pay schedules.

The exact amount of funds appropriated is not specified in the amendment text.
Details about how the conversion from after-the-fact to predicted payroll will be implemented are not provided.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-13 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kitagawa, Ward excused (3).
2025-02-13 H
Reported from LAB (Stand. Com. Rep. No. 534) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2025-02-11 H
The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela, Kong, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
2025-02-07 H
Bill scheduled to be heard by LAB on Tuesday, 02-11-25 9:00AM in House conference room 309 VIA VIDEOCONFERENCE.
2025-01-21 H
Referred to LAB, FIN, referral sheet 1
2025-01-16 H
Introduced and Pass First Reading.
2025-01-13 H
Prefiled.

Official Summary Text

RELATING TO PUBLIC EMPLOYEE COMPENSATION.
DAGS; Salaries; Public Officers and Employees; Payroll Schedule; Appropriations ($)
Amends payroll requirements for public officers and employees by requiring them to be paid pursuant to a predicted payroll schedule, rather than an after-the-fact payroll schedule. Provides that the predicted payroll schedule shall not be subject to negotiation under Chapter 89, HRS. Appropriates funds. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB90

HOUSE OF REPRESENTATIVES

H.B. NO.

90

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO PUBLIC EMPLOYEE COMPENSATION
.

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

����
SECTION
1
.
�
Section 78-13,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

����
"(a)
�
Unless otherwise provided by law, all
officers and employees shall be paid at least semimonthly except that
substitute teachers, part-time hourly rated teachers of adult and evening
classes, and other part-time, intermittent, or casual employees may be paid
once a month [
and that the governor, upon reasonable notice and upon
determination that the payroll payment basis should be converted from predicted
payroll to after-the-fact payroll, may allow a one-time once a month payroll
payment to all public officers and employees to effect a conversion to
after-the-fact payroll as follows:

����
(1)
�
The
implementation of the after-the-fact payroll will commence with the June 30,
1998, pay day, which will be delayed to July 1, 1998;

����
(2)
�
The July 15,
1998, pay day will be delayed to July 17, 1998;

����
(3)
�
The July 31,
1998, pay day will be delayed to August 3, 1998;

����
(4)
�
The August 14,
1998, pay day will be delayed to August 19, 1998;

����
(5)
�
The August 31,
1998, pay day will be delayed to September 4, 1998;

����
(6)
�
The September
15, 1998, pay day will be delayed to September 18, 1998; and

����
(7)
�
Thereafter, pay
days will be on the fifth and the twentieth of every month.
�
If the fifth and the twentieth fall on a
state holiday, Saturday, or Sunday, the pay day will be the immediately
preceding weekday.
]
; provided that the payroll payment basis shall be
converted from after-the-fact payroll to predicted payroll and shall commence
with the August 5, 2025, pay day, which shall be paid on July 31, 2025,
and thereafter pay days shall be on the fifteenth and last day of every
month.
�
If the fifteenth or the last day
of the month falls on a state holiday, Saturday, or Sunday, the pay day shall
be on the immediately preceding weekday.

����
The
implementation of the [
after-the-fact
]
predicted
payroll shall
not be subject to negotiation under chapter 89."

����
SECTION 2.
�
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 to establish six
full-time equivalent (6.0 FTE) positions to perform tasks related to payroll
processing, including training, expanded monitoring and auditing, expanded
overpayment analysis, and overpayment collection.

����
The sums appropriated shall be
expended by the department of accounting and general services for the purposes
of this Act.

����
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 2025-2027 to pay for costs
necessary to convert employees from an after‑the‑fact payroll
schedule to a predicted payroll schedule.

����
The sum appropriated shall be
expended by the department of accounting and general services for the purposes
of this Act.

����
SECTION 4.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

����
SECTION 5.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 6.
�
This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

DAGS; Salaries;
Public Officers and Employees; Payroll Schedule; Appropriations; General Fund
Expenditure Ceiling Exceeded

Description:

Repeals
payroll day for public officers and employees by requiring them to be paid
pursuant to a predicted payroll schedule, rather than an after-the-fact payroll
schedule.
�
Provides that the predicted
payroll schedule shall not be subject to negotiation under Chapter 89, HRS.
�
Makes appropriations to establish 6 full-time
equivalent positions and to cover the costs of converting to a predicted
payroll schedule for 2025-2027.

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