Capitol Update

Legislative session will end in May. The economy is booming, unemployment is at about 3%, and the state budget is in the black. Various labor bills are making their way through the legislature.

Labor-related Legislation

A minimum wage bill is likely to pass this year. Each house currently has a version, HB 1134 and SB 1561, which will be hashed out in conference committee and then sent to the governor. Governor Lingle has said she will support a wage increase only if it goes up to no more than $7.00 per hour from the current $6.25, and includes a significant increase in the tip credit -- perhaps to as much as $3.00 from the current 25 cents per hour. If the Democrats send Lingle a version she vetoes, the possibility exists for an override by the Legislature. Presently, the minimum wage bill is going to conference committee. A bill will likely be passed and be signed into law that will increase the wage incrementally, the exact figures are not certain yet.

Labor's big bill is placing in stature Workers' Comp laws. The governor has been changing the workers compensation laws through the regulatory process and labor wants it to stop. This will likely pass the Legislature, be vetoed by the Governor, and in July there will be a veto override. Democrats have super majorities in both houses of the legislature. In the Senate, 10 of the 15 Senators are Democrats and in the Assembly, 41 of the 61 members are Democrats.

Additional Labor Bills

• A bill to prevent employers from penalizing workers for using sick leave will go to the Governor's desk but should be vetoed.

• Legislation to require disclosure of which employers are having their workers use public assistance will most likely be vetoed.

• Cardcheck legislation has been placed on hold by the author. This piece of legislation would require employers to allow unions to use cardchecks to form unions. It is probably preempted by federal law so the author has decided not to go forward with the bill.

• Legislation to allow picketing in malls is dead - the outcry from the tourist industry was too fierce.

• Legislation to allow picketing in front of private residences has also failed to move forward.

Governor Lingle Positioning Herself for Re-election in 2006

Governor Lingle is reaching out to centrist Democrats with legislative measures to help the working poor and, at the same time, is maintaining support from Republicans as she looks ahead to the 2006 election. She wants to raise the standard state tax deduction and bring it into line with the federal rate, taking thousands of working poor off the tax rolls. Also, she wants to create immediate tax credits for developers willing to build affordable housing and increase the housing inventory. The tax breaks, however, depend on the outcome and costs of current wage negotiations with the public sector unions.

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