RELATING TO PAID FAMILY LEAVE.

SB1054

THE SENATE

S.B. NO.

1054

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to paid family leave
.

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

PART I

����
SECTION
1.
�
The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as follows:

"
Chapter

PAID
FAMILY AND MEDICAL LEAVE

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�
-1
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Definitions.
�
As used in this chapter, unless the context
clearly requires otherwise:

����
"Application
year" means the twelve-month period beginning on the first day of the
calendar week in which an individual files an application for family and
medical leave insurance benefits.

����
"Covered
individual" means:

����
(1)
�
Any person who:

���������
(A)
�
Has been working for an employer for at least
fourteen weeks, during each of which the individual has received remuneration
in any form for twenty or more hours and earned wages of at least $400, during
the fifty-two weeks immediately prior to paid leave granted under this chapter;
or

���������
(B)
�
Is self-employed, elects coverage, and meets
the requirements of section -13;

����
(2)
�
Meets the administrative requirements outlined
in this chapter and in rules adopted pursuant to this chapter; and

����
(3)
�
Submits an application.

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"Department"
means the department of labor and industrial relations.

����
"Director"
means the director of labor and industrial relations.

����
"Domestic
partner" means a person at least eighteen years of age who:

����
(1)
�
Is dependent upon the covered individual for
support as shown by either unilateral dependence or mutual interdependence that
is evidenced by a nexus of factors, including but not limited to:

���������
(A)
�
Common ownership of real or personal property;

���������
(B)
�
Common householding;

���������
(C)
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Children in common;

���������
(D)
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Signs of intent to marry;

���������
(E)
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Shared budgeting; and

���������
(F)
�
The length of the personal relationship with
the covered individual; or

����
(2)
�
Has registered as the domestic partner of the
covered individual with any registry of domestic partnerships maintained by the
employer of either party, or in any state, county, city, town, or village in
the United States.

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"Employee"
includes any individual employed by an employer.

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"Employer"
has the same meaning as in section 387-1; provided that "employer"
shall include the State or counties or any political subdivision thereof.

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"Family
leave" means leave taken pursuant to section ‑2(a).

����
"Family
leave insurance benefits" means the benefits provided under the terms of
this chapter to a covered individual while the covered individual is on family
leave.

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"Family
member" means:

����
(1)
�
A biological, adopted, or foster child,
stepchild, or legal ward, a child of a domestic partner, or a child to whom the
covered individual stands in loco parentis;

����
(2)
�
A biological, adoptive, or foster parent,
stepparent, or legal guardian of a covered individual or a covered individual's
spouse or domestic partner, or a person who stood in loco parentis when the
covered individual or the covered individual's spouse or domestic partner was a
minor child;

����
(3)
�
A person to whom the covered individual is
legally married under the laws of any state, or a domestic partner of a covered
individual; or

����
(4)
�
A grandparent, grandchild, or sibling (whether
a biological, foster, adoptive or step relationship) of the covered individual
or the covered individual's spouse or domestic partner.

����
"Health
care provider" means any person licensed under federal or state law to
provide medical or emergency services, including but not limited to doctors,
nurses, and emergency room personnel, or certified midwives.

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"Medical
leave" means leave taken pursuant to section ‑2(b).

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"Medical
leave insurance benefits" means the benefits provided under the terms of
this chapter to a covered individual while the covered individual is on medical
leave.

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"Next
of kin" has the same meaning as in section 101(17) of the federal Family
and Medical Leave Act (29 U.S.C. 2611(17)).

����
"Qualifying
exigency" means leave based on a need arising out of a covered
individual's family member's active duty service or notice of an impending call
or order to active duty in the armed forces, including but not limited to
providing for the care or other needs of the military member's dependent,
making financial or legal arrangements for the military member, attending
counseling, attending military events or ceremonies, spending time with the
military member during a rest and recuperation leave or following return from
deployment, or making arrangements following the death of the military member.

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"Qualifying
service member" means:

����
(1)
�
A member of the armed forces, including a
member of the national guard or reserves, who is:

���������
(A)
�
Undergoing medical treatment, recuperation, or
therapy;

���������
(B)
�
Otherwise in outpatient status; or

���������
(C)
�
Is otherwise on the temporary disability
retired list for a serious injury or illness that was incurred by the member in
the line of duty on active duty in the armed forces, or a serious injury or
illness that existed before the beginning of the member's active duty and was
aggravated by service in the line of duty on active duty in the armed forces;
or

����
(2)
�
A former member of the armed forces, including
a former member of the national guard or reserves, who is undergoing medical
treatment, recuperation, or therapy for a serious injury or illness that was
incurred by the member in line of duty on active duty in the armed forces, or a
serious injury or illness that existed before the beginning of the member's
active duty and was aggravated by service in line of duty on active duty in the
armed forces and manifested before or after the member was discharged or released
from service.

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"Retaliatory
personnel action" means denial of any right guaranteed under this chapter,
including but not limited to any threat, discharge, suspension, demotion,
reduction of hours, any other adverse action against an employee for the
exercise of any right guaranteed in this chapter, or reporting or threatening
to report an employee's suspected citizenship or immigration status or the
suspected citizenship or immigration status of a family member of the employee
to a federal or state agency.
�

"Retaliatory personnel action" includes interference with or
punishment for, in any manner, participating in or assisting an investigation,
proceeding, or hearing under this chapter.

����
"Serious
health condition" is an illness, injury, impairment, pregnancy, recovery
from childbirth, organ donation, termination of pregnancy, or physical or
mental condition that involves inpatient care in a hospital, hospice, or
residential medical care facility, or continuing treatment by a health care
provider.

����
"State
average weekly wage" has the same meaning as in section 386-1.

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�
-2
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Eligibility of benefits.
�
(a)
�

Beginning January 1, 2028, family leave insurance benefits shall be
payable to an individual who:

����
(1)
�
Qualifies as a covered individual; and

����
(2)
�
Meets one of the following requirements:

���������
(A)
�
Because of birth, adoption, or placement
through foster care, is caring for a new child during the first year after the
birth, adoption, or placement;

���������
(B)
�
Is caring for a family member with a serious
health condition;

���������
(C)
�
Is caring for a qualifying service member who
is the individual's next of kin;

���������
(D)
�
Is a victim of domestic abuse, sexual assault,
or stalking who needs leave for medical attention; mental health care or other
counseling; victim services, including legal services; court appearances; or
relocation for themselves or a family member; or

���������
(E)
�
Has a qualifying exigency.

����
(b)
�
Beginning January 1, 2028, medical leave
insurance benefits shall be payable to an individual who:

����
(1)
�
Qualifies as a covered individual; and

����
(2)
�
Has a serious health condition that makes the
covered individual unable to perform the functions of the covered individual's
position, unless the condition is due to a personal injury of an employee that
is subject to or eligible for compensation under chapter 386.

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�
-3
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Duration of benefits.
�
(a)
�

The maximum number of weeks during which family leave insurance benefits
are payable in an application year shall be twelve weeks.

����
(b)
�
The maximum number of weeks during which
medical leave insurance benefits are payable in an application year shall be
twenty-six weeks.

����
(c)
�
The first payment of benefits shall be made
to a covered individual within two weeks after the family leave begins, and
subsequent payments shall be made every two weeks thereafter.

����
(d)
�
Claims may be filed up to forty-five days in
advance of the family leave, if anticipation of the family leave is possible.

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-4
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Amount of benefits.
�
(a)
�
Subject
to the maximum weekly benefit amount pursuant to subsection (b), the weekly
benefit shall be calculated by adding the amounts obtained by applying the
following percentage to a covered individual's average weekly wage during the
twelve months preceding submission of the application or the average weekly
wage during the time the covered individual worked, if less than twelve months:

����
(1)
�
Ninety per cent of wages that are equal to or
less than fifty per cent of the state average weekly wage;

����
(2)
�
Sixty-six per cent of wages that exceed fifty
per cent of the state average weekly wage but is not more than one hundred per
cent; and

����
(3)
�
Fifty-five per cent of wages that exceed one
hundred per cent of the state average weekly wage.

����
(b)
�
In no case shall the weekly benefit amount
exceed the state average weekly wage.

����
(c)
�
Family and medical leave insurance benefits
shall not be payable for less than eight hours of family and medical leave
taken in one work week.

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�
-5
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Contributions.
�
(a)
�

Payroll contributions shall be authorized in order to finance the
payment of benefits under and for administration and operation of the family
and medical leave insurance program.

����
(b)
�
Beginning January 1, 2027, payroll
contributions shall be paid by employers and employees in an amount to be
determined by the department, based on a per cent of employee wages.
�
The department shall be responsible for
evaluating and determining on an annual basis the amount of payroll
contributions necessary to finance the family and medical leave insurance
benefits program.

����
(c)
�
An employer may deduct and withhold
contributions from each employee of up to fifty per cent of the amount of
payroll contribution determined by the department.

����
(d)
�
An employer with five or more employees shall
remit one hundred per cent of the amount of payroll contribution determined by
the department to the family and medical leave trust fund.

����
(e)
�
An employer with fewer than five employees
shall remit fifty per cent of the amount of payroll contribution determined by
the department to the family and medical leave trust fund.

����
(f)
�
A self-employed individual who is electing
coverage under section -13 shall remit fifty per cent of the
amount of payroll contribution determined by the department to the family and
medical leave trust fund.

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�
-6
�
Reduced leave schedule.
�
(a)
�
A
covered individual shall be entitled, at the option of the covered individual,
to take paid family and medical leave on an intermittent or reduced leave
schedule in which all of the leave authorized under this chapter is not taken
sequentially.
�
Family and medical leave
insurance benefits for intermittent or reduced leave schedules shall be
prorated.

����
(b)
�
The covered individual shall provide the
employer with prior notice of the schedule on which the covered individual will
be taking the leave, to the extent practicable.
�

Paid family and medical leave taken under this section shall not result
in a reduction of the total amount of leave to which an employee is entitled
beyond the amount of leave actually taken.

����
(c)
�
Nothing in this section shall be construed to
entitle a covered individual to more leave than allowed under section
-3.

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�
-7
�
Leave and employment protection.
�
(a)
�

Any covered individual who exercises the covered individual's right to
family and medical leave insurance benefits shall, upon the expiration of that
leave, be entitled to be restored by the employer to the position held by the
covered individual when the leave commenced, or to a position with equivalent
seniority, status, employment benefits, pay, and other terms and conditions of
employment, including but not limited to fringe benefits and service credits
that the covered individual had been entitled to at the commencement of leave.

����
(b)
�
During any leave taken pursuant to section
-2, the employer shall maintain any health care benefits the
covered individual had prior to taking such leave for the duration of the leave
as if the covered individual had continued in employment continuously from the
date the covered individual commenced the leave until the date the family and
medical leave insurance benefits terminate; provided that the covered
individual shall continue to pay the covered individual's share of the cost of
health benefits as required prior to the commencement of the leave.

����
(c)
�
This section shall be enforced as provided in
chapter 398.

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�
-8
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Retaliatory personnel actions prohibited.
�
(a)
�
It
shall be unlawful for an employer or any other person to interfere with,
restrain, or deny the exercise of, or the attempt to exercise, any right
protected under this chapter.

����
(b)
�
An employer, temporary help company,
employment agency, employee organization, or other person shall not take
retaliatory personnel action or otherwise discriminate against a person because
the person exercised rights protected under this chapter.
�
These rights include but are not limited to
the right to request, file for, apply for, or use benefits or leave provided
for under this chapter; communicate to the employer or any other person or
entity an intent to file a claim, a complaint with the department or courts, or
an appeal; testify, plan to testify, or assist in any investigation, hearing,
or proceeding under this chapter, at any time, including during the period in
which the person receives family and medical leave insurance benefits under
this chapter; inform any person about any employer's alleged violation of this
chapter; and inform any other person of the other person's rights under this
chapter.

����
(c)
�
It shall be unlawful for an employer's
absence control policy to count paid family and medical leave taken under this
chapter as an absence that may lead to or result in discipline, discharge,
demotion, suspension, or any other adverse action.

����
(d)
�
Protections of this section shall apply to
any person who mistakenly, but in good faith, alleges violations of this
chapter.

����
(e)
�
This section shall be enforced as provided in
chapter 398.

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�
-9
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Coordination of benefits.
�
(a)
�

Leave taken with wage replacement under this chapter that also qualifies
as leave under the federal Family and Medical Leave Act or chapter 398 shall
run concurrently with leave taken under the federal Family and Medical Leave
Act or chapter 398.

����
(b)
�
An employer may require that payment made
pursuant to this chapter be made concurrently or otherwise coordinated with
payment made or leave allowed under the terms of disability or family care
leave under a collective bargaining agreement or employer policy.
�
The employer shall give employees written
notice of this requirement.

����
(c)
�
This chapter does not diminish an employer's
obligation to comply with any of the following that provide more generous
leave:

����
(1)
�
A collective bargaining agreement;

����
(2)
�
An employer policy; or

����
(3)
�
Any other law.

����
(d)
�
An individual's right to leave under this
chapter may not be diminished by a collective bargaining agreement entered into
or renewed, or an employer policy adopted or retained, after the effective date
of this chapter.
�
Any agreement by an
individual to waive the individual's rights under this chapter is void as
against public policy.

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�
-10
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Notice.
�

(a)
�
Each employer shall provide
written notice to each employee upon hiring and annually thereafter.
�
An employer shall also provide written notice
to an employee when the employee requests leave under this chapter, or when the
employer acquires knowledge that an employee's leave may be for a qualifying
reason under section -2(a)(2).
�
Such notice shall include:

����
(1)
�
The employee's right to family and medical
leave insurance benefits under this chapter and the terms under which the
benefits may be used;

����
(2)
�
The amount of family and medical leave
insurance benefits;

����
(3)
�
The procedure for filing a claim for benefits;

����
(4)
�
The procedure for selecting a designated
person;

����
(5)
�
The right to employment protection and
benefits continuation under section -7;

����
(6)
�
That discrimination and retaliatory personnel
actions against a person for requesting, applying for, or using family and
medical leave insurance benefits is prohibited under section
-8; and

����
(7)
�
That the employee has a right to file a
complaint for violations of this chapter.

����
(b)
�
An employer shall display and maintain a
poster in a conspicuous place accessible to employees at the employer's place
of business that contains the information required by this section in English,
Ilocano, Tagalog, Japanese, and any language that is the first language spoken
by at least five per cent of the employer's workforce; provided that the notice
has been provided by the department.
�
The
director may adopt rules to establish additional requirements concerning the
means by which employers shall provide such notice.

����
(c)
�
Employees shall provide notice to their
employers as soon as practicable of their intention to take leave under this
chapter.

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�
-11
�
Appeals.
�

(a)
�
The director shall establish
a system for appeals in the case of a denial of family and medical leave
insurance benefits.
�
In establishing the
system, the director may utilize any and all procedures and appeals mechanisms
established under section 383-38.

����
(b)
�
Judicial review of any decision with respect
to family and medical leave insurance benefits shall be permitted in a court of
competent jurisdiction after an aggrieved party has exhausted all
administrative remedies established by the director.

����
(c)
�
The director shall implement procedures to
ensure confidentiality of all information related to any claims filed or
appeals taken to the maximum extent permitted by applicable laws.

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�
-12
�
Erroneous payments and disqualifications for
benefits.
�
(a)
�
A covered individual shall be disqualified
from family and medical leave insurance benefits for one year if the individual
is determined by the director to have knowingly and wilfully made a false
statement or misrepresentation regarding a material fact, or knowingly and
wilfully failed to report a material fact, to obtain benefits under this
chapter.

����
(b)
�
If family and medical leave insurance
benefits are paid erroneously or as a result of misrepresentation, or if a
claim for family and medical leave insurance benefits is rejected after
benefits are paid, the department may seek repayment of benefits and penalties
from the recipient.
�
The amount of
penalty shall not be greater than one hundred fifty per cent of the amount of
benefits paid erroneously to the recipient.
�

The director shall exercise the director's discretion to waive, in whole
or in part, the amount of any payments and penalties where the recovery would
be against equity and good conscience.

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�
-13
�
Elective coverage.
�
(a)
�
A
self-employed person, including a sole proprietor, partner, or joint venturer,
may elect coverage under this chapter for an initial period of not less than
three years.
�
The self-employed person
shall file a notice of election in writing with the director, as required by
the department.
�
The election shall
become effective on the date of filing the notice.
�
As a condition of election, the self-employed
person shall agree to supply any information concerning income that the
department deems necessary.

����
(b)
�
A self-employed person who has elected
coverage may withdraw from coverage within thirty days after the end of the
three-year period of coverage, or at other times as the director may prescribe
by rule, by filing written notice with the director.
�
The withdrawal shall take effect no sooner
than thirty days after filing the notice.

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�
-14
�
Family and medical leave insurance program.
�
(a)
�
By
January 1, 2027, the department shall establish and administer a family and
medical leave insurance program and begin collecting contributions as specified
in this chapter.
�
By January 1, 2028, the
department shall begin receiving claims and paying family and medical leave
insurance benefits as specified in this chapter.

����
(b)
�
The department shall establish reasonable
procedures and forms for filing claims for benefits under this chapter and
shall specify the necessary supporting documentation to support a claim for
benefits, including any documentation required from a health care provider for
proof of a serious health condition and any documentation required by the
department to meet the eligibility requirements for family leave.

����
(c)
�
The department shall notify the employer
within five business days of a claim being filed pursuant to this chapter.

����
(d)
�
The department shall use information sharing
and integration technology to facilitate the disclosure of relevant information
or records so long as the covered individual consents to the disclosure as
required under state law.

����
(e)
�
Information contained in the files and
records pertaining to a covered individual under this chapter shall be
confidential and not open to public inspection, other than to public employees
in the performance of their official duties; provided that the individual or an
authorized representative of an individual may review the records or receive
specific information from the records upon the presentation of the individual's
signed authorization.

����
(f)
�
The director shall adopt rules as necessary
to implement this chapter.

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�
-15
�
Federal income tax.
�
If the Internal Revenue Service determines
that family and medical leave insurance benefits under this chapter are subject
to federal income tax, the department shall advise a covered individual filing
a new claim for family and medical leave insurance benefits, at the time of
filing the claim, that:

����
(1)
�
The Internal Revenue Service has determined
that benefits are subject to federal income tax;

����
(2)
�
Requirements exist pertaining to estimated tax
payments;

����
(3)
�
The individual may elect to have federal
income tax deducted and withheld from the individual's payment of benefits in
the amount specified in the Internal Revenue Code of 1986, as amended; and

����
(4)
�
The individual is permitted to change a
previously elected withholding status.

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�
-16
�
Family and medical leave trust fund.
�
(a)
�

There is established in the treasury of the State as a trust fund,
separate and apart from all public moneys or funds of the State, a family and
medical leave trust fund, which shall be administered by the department
exclusively for the purposes of this chapter.
�

All contributions pursuant to this chapter shall be paid into the fund
and all benefits payable pursuant to this chapter shall be paid from the
fund.
�
All moneys in the fund shall be
mingled and undivided.

����
(b)
�
Whenever in the judgment of the director of
finance there shall be in the trust fund an amount of funds in excess of that
amount deemed by the director of finance to be sufficient to meet the current
expenditures properly payable therefrom, the director of finance shall have
full power to invest, reinvest, manage, contract, sell, or exchange investments
acquired with the excess funds in the manner prescribed by law.

����
(c)
�
On January 1, 2026, or as soon as possible
thereafter, the director of finance shall transfer
$ from the general
fund as a loan to the family and medical leave trust fund for the purpose of
defraying expenses incurred by the department, including hiring and employing
personnel to perform functions relating to the establishment and administration
of the family and medical leave trust fund, before the family and medical leave
trust fund receives payroll contributions.

����
(d)
�
No later than December 31, 2029, the
department shall repay the loan received pursuant to subsection (c).

����
�
-17
�
Reports.
�

Beginning January 1, 2029, the department shall report to the
legislature by April 1 of each year on projected and actual program
participation in the family and medical leave insurance program and include the
criteria listed in section -2(a)(2), gender of beneficiary,
premium rates, fund balances, outreach efforts, and, for leaves taken under
section -2(a)(2)(B), family members for whom leave was taken
to provide care.

����
�
-18
�
Public education.
�
The department shall conduct a public
education campaign to inform employees and employers regarding the availability
of family and medical leave insurance benefits.
�

Outreach information shall be available in English, Ilocano, Chuukese,
Marshallese, Tagalog, Spanish, and other languages spoken by more than five per
cent of the students in the department of education's English learner program.

����
�
-19
�
Sharing technology.
�
The department may use state data collection
and technology to the extent possible and to integrate the program with
existing state policies.

����
�
-20
�
Severability.
�
If any provision of this chapter or its
application to any person or circumstance is held invalid, the invalidity shall
not affect other provisions or applications of the chapter which can be given
effect without the invalid provision or application, and to this end the
provisions of this chapter are declared to be severable."

����
SECTION 2.
�
The department shall adopt all rules
necessary for implementation of this part by January 1, 2026.

PART II

����
SECTION
3
.
�
Chapter 392, Hawaii Revised Statutes, is
repealed.

����
SECTION
4
.
�
Subpart B of part VI of chapter 378, Hawaii
Revised Statutes, is repealed.

PART III

����
SECTION
5
.
�
Section 41D-2, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:

����
"
(a)
�
The comptroller, through the risk manager,
shall:

����
(1)
�
Have discretion to purchase casualty insurance
for the State or state agencies, including those employees of the State who, in
the comptroller's discretion, may be at risk and shall be responsible for the
acquisition of all casualty insurance;

����
(2)
�
Have discretion to purchase property insurance
for the State or state agencies and shall acquire all property insurance;

����
(3)
�
Direct and manage all risk management and
insurance programs of the State, except for employee benefits insurance and
workers' compensation insurance programs or as otherwise provided in chapters
87A, 88, 383 to 386A, [
392,
] and 393;

����
(4)
�
Consult with state agencies to determine what
property, casualty, and other insurance policies are presently in force or are
sought by the state agencies and to make determinations about whether to
continue subscribing to insurance policies.
�

In the event that the risk manager's determination is not satisfactory
to the state agency, the state agency may have the risk manager's decision
reviewed by the comptroller.
�
In this
case, the comptroller's decision shall be final;

����
(5)
�
Consolidate and combine state insurance
coverages, and purchase excess insurance when, in the comptroller's discretion,
it is appropriate to do so;

����
(6)
�
Acquire risk management, investigative, claims
adjustment, actuarial, and other services, except attorney's services, as may
be required for the sound administration of this chapter; provided that a
broker submitting a proposal in response to a fixed fee solicitation by the
comptroller pursuant to this subsection and the broker's performance of the
activities in accordance with the proposal shall not constitute a violation of
sections 431:10-218, 431:13‑102, and 431:13-103;

����
(7)
�
Gather from all state agencies and maintain
data regarding the State's risks and casualty, property, and fidelity losses;

����
(8)
�
In conjunction with the attorney general and
as otherwise provided by this chapter, compromise or settle claims cognizable
under chapter 662;

����
(9)
�
Provide technical services in risk management
and insurance to state agencies;

���
(10)
�
Be authorized to establish a captive insurance
company pursuant to article 19 of chapter 431 to effectuate the purposes of
this chapter; and

���
(11)
�
Do all other things appropriate to the
development of sound risk management practices and policies for the
State."

����
SECTION
6
.
�
Section 103D-310, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:

����
"(c)
�
All offerors, upon award of contract, shall
comply with all laws governing entities doing business in the State, including
chapters 237, 383, 386, [
392,
] and 393.
�

Offerors shall produce documents to the procuring officer to demonstrate
compliance with this subsection.
�
Any
offeror making a false affirmation or certification under this subsection shall
be suspended from further offerings or awards pursuant to section
103D-702.
�
The procuring officer shall
verify compliance with this subsection for all contracts awarded pursuant to
sections 103D-302, 103D-303, 103D-304, and 103D-306, and for contracts and
procurements of $2,500 or more awarded pursuant to section 103D-305; provided
that the attorney general may waive the requirements of this subsection for
contracts for legal services if the attorney general certifies in writing that
comparable legal services are not available in this State."

����
SECTION
7
.
�
Section 393-3, Hawaii Revised Statutes, is
amended by amending the definition of "wages" to read as follows:

����
""Wages"
means all remuneration for services from whatever source, including
commissions, bonuses, and tips and gratuities paid directly to any individual
by a customer of the individual's employer, and the cash value of all
remuneration in any medium other than cash.

����
The
director may issue [
regulations
]
rules
for the reasonable
determination of the cash value of remuneration in any medium other than cash.

����
If the
employee does not account to the employee's employer for the tips and
gratuities received and is engaged in an occupation in which the employee
customarily and regularly receives more than $20 a month in tips, the combined
amount received by the employee from the employee's employer and from tips
shall be deemed to be at least equal to the wage required by chapter 387 or a
greater sum as determined by regulation of the director.

����
"Wages"
does not include the amount of any payment specified in section 383-11 [
or
392-22
] or chapter 386."

����
SECTION
8
.
�
Section 398-4, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:

����
"(c)
�
An employer who provides sick leave for
employees shall permit an employee to use the employee's accrued and available
sick leave for purposes of this chapter; provided that an employee shall not
use more than ten days per year for this purpose, unless an express provision
of a valid collective bargaining agreement authorizes the use of more than ten
days of sick leave for family leave purposes.
�

[
Nothing in this section shall require an employer to diminish an
employee's accrued and available sick leave below the amount required pursuant
to section 392-41; provided that any sick leave in excess of the minimum
statutory equivalent for temporary disability benefits as determined by the
department may be used for purposes of this chapter.
]"

����
SECTION
9
.
�
Section 431:10-244, Hawaii Revised Statutes,
is amended to read as follows:

����
"
�431:10-244
�
Filing procedure for contracts approved by
commissioner.
�
Each insurance
contract requiring approval by the commissioner pursuant to this code[
,
section 392-48,
] or section 386-124 and each contract certified by the
insurer to be in conformity with this code shall be accompanied by a $20 fee
payable to the commissioner, which shall be deposited into the commissioner's
education and training fund."

PART IV

����
SECTION
10.
�
Chapter 378, Hawaii Revised
Statutes, is amended by amending the title of part VI, subpart C, to read as
follows:

"
[
C.
]
B.
�
REASONABLE ACCOMMODATIONS IN THE WORKPLACE
"

����
SECTION
11
.
�
Section 378-71, Hawaii Revised Statutes, is
amended as follows:

����
1.
�

By repealing the definition of "child".

����
["
"Child"
means an individual who is a biological, adopted, or foster son or daughter; a
stepchild; or a legal ward of an employee.
"]

����
2.
�
By repealing the definition of "course
of conduct".

����
["
"Course
of conduct" means acts over any period of time of repeatedly maintaining a
visual or physical proximity to a person or conveying verbal or written
threats, including threats conveyed through electronic communications or
threats implied by conduct.
"]

����
3.
�
By repealing the definition of
"electronic communications".

����
["
"Electronic
communications" includes communications via telephone, mobile phone,
computer, e-mail, video recorder, fax machine, telex, or pager.
"]

����
4.
�
By repealing the definition of "health
care provider".

����
["
"Health
care provider" means a physician as defined under section 386-1.
"]

PART V

����
SECTION
12.
�
If any provision of this Act, or the
application thereof to any person or circumstance, is held invalid, the
invalidity does not affect other provisions or applications of the Act that can
be given effect without the invalid provision or application, and to this end
the provisions of this Act are severable.

����
SECTION
13.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION
14.
�
This Act shall take effect on July
1, 2025; provided that parts II, III, and IV shall take effect on the earlier
of January 1, 2028, or the start of the department of labor and industrial
relations receiving claims and paying family and medical leave insurance
benefits as specified under chapter , Hawaii Revised Statutes.

INTRODUCED BY:

_____________________________

Report Title:

Family
and Medical Leave Insurance Program; Family and Medical Leave Insurance
Benefits; Department of Labor and Industrial Relations

Description:

By
1/1/2027, requires the Department of Labor and Industrial Relations to
establish a family and medical leave insurance program and begin collecting
payroll contributions to finance payment of benefits.
�
By 1/1/2028, requires the Department to start
receiving claims and paying benefits under the program.
�
Specifies eligibility requirements and
employee protections under the program.

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