SR 117: requesting the Department of Labor and Industrial Relations to convene a working group to develop recommendations for establishing and implementing a paid family and medical leave program for the state.

SENATE RESOLUTION

requesting the Department of Labor and Industrial Relations to convene a working group to develop recommendations for establishing and implementing a paid family and medical leave program for the state.

     WHEREAS, the United States is the only remaining industrialized nation without mandated access to paid family and medical leave benefits for private sector employees under federal law; and

     WHEREAS, paid family and medical leave programs have been enacted in thirteen states and Washington, D.C. as of January 2024; and

     WHEREAS, existing State law does not require employers to provide paid family and medical leave to employees; and

     WHEREAS, the federal Family and Medical Leave Act of 1993 (FMLA) requires employers with fifty of more employees to provide unpaid family and medical leave to their employees and existing Hawaii law requires employers with one hundred or more employees to provide unpaid family leave to their employees; and

     WHEREAS, ninety-six percent of private employers in the State, however, have fewer than fifty employees, and are therefore not statutorily required to provide unpaid family and medical leave under the FMLA or family leave under existing state law; and

     WHEREAS, as a result, only one in four private sector workers in the State have access to paid family and medical leave, voluntarily provided by their employers; and

     WHEREAS, according to a May 2020 report published by the AARP and National Alliance for Caregiving, there are nearly forty-eight million family caregivers in the United States, of which sixty-one percent are working while juggling caregiving responsibilities; and

     WHEREAS, a family caregiver is a relative, partner, friend, or neighbor who has a significant personal relationship with, and who provides a broad range of assistance for, an older person or an adult with a chronic, disabling, or serious health condition; and

     WHEREAS, family caregivers are the backbone of the long‑term care system in the State, especially in the context of the ongoing health care workforce shortage; and

     WHEREAS, according to the Valuing the Invaluable: 2023 Update report published by AARP in March 2023, there are 154,000 family caregivers in the State, contributing 144 million hours of unpaid services, worth an estimated $2.6 billion; and

     WHEREAS, family caregivers face many physical, emotional, and financial challenges, especially because they are often required to balance unpaid caregiving duties with employment and other personal responsibilities; and

     WHEREAS, a survey conducted in 2023 by AARP and S&P Global showed that sixty-seven percent of family caregivers are having difficulty balancing their jobs with caregiving duties; twenty‑seven percent of working caregivers have shifted from full‑time to part‑time work or have reduced work hours and sixteen percent have turned down a promotion; sixteen percent have stopped working entirely for a period of time; and thirteen percent have changed employers to meet caregiving responsibilities; and

     WHEREAS, during the past two decades, heightened attention has been given to the dual responsibilities of "sandwich generation" caregivers, who are family caregivers sandwiched between a younger generation--children or grandchildren they care for--and an older one--an older family member or friend for whom they also provide care; and

     WHEREAS, in 2019, thirty percent of family caregivers in the United States were sandwich generation caregivers, who generally span ages thirty-five to sixty-four and are more likely than other caregivers to be working while performing their caregiving responsibilities; and

     WHEREAS, as a result of the dual-generation care demands, sandwich generation caregivers report higher levels of emotional and financial strain; and

     WHEREAS, inequity in the existing socioeconomic structure and support infrastructure are also subjecting working women and people of color to be unequally burdened by caregiving duties and economic hardships due to caregiving; and

     WHEREAS, a paid family and medical leave program would enable family caregivers to take a limited period of time off from work to care of loved ones without fear of losing their jobs or income; and

     WHEREAS, paid family and medical leave programs are associated with improved outcomes in the earliest years of life for individuals, including higher rates of breastfeeding and immunization and lower rates of child abuse, domestic violence, and financial instability; and

     WHEREAS, in the face of the current workforce shortage, a paid family and medical leave program would incentivize individuals to join the labor market and improve employee retention, filling gaps and saving employers long-term recruitment and training costs; and

     WHEREAS, most small businesses in the State however, cannot finance a privately-funded paid family and medical leave insurance program that can provide benefits for all of their employees; and

     WHEREAS, a state-administered paid family and medical leave program would benefit the State's workforce while reducing the financial burden for employers compared to a privately funded alternative; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, that the Department of Labor and Industrial Relations is requested to convene a working group to develop recommendations for establishing and implementing a paid family and medical leave program for the State; and

     BE IT FURTHER RESOLVED that the Department of Labor and Industrial Relations is requested to conduct an actuarial study of the State's workforce, employers, potential beneficiaries, and other elements necessary to implement a paid family and medical leave program; and

     BE IT FURTHER RESOLVED that the working group is requested to:

     (1)  Recommend parameters for a statewide paid family and medical leave program that benefits both public and private sector workers;

     (2)  Review the impacts of federal and state laws, including the federal Employee Retirement Income Security Act of 1974; federal Family and Medical Leave Act of 1993; Prepaid Health Care Act, codified at chapter 393, Hawaii Revised Statutes; and Hawaii Family Leave Law, codified at chapter 398, Hawaii Revised Statutes; federal and state regulations; and any relevant programs, on the establishment of a paid family and medical leave program;

     (3)  Review independent studies, research, and other information regarding paid family and medical leave;

     (4)  Develop an implementation plan that considers the findings of the actuarial study conducted by the Department of Labor and Industrial Relations and outlines an administrative framework for paid family and medical leave, including departmental oversight, projected costs, employer and employee contribution rates, staffing needs, outreach to employers and employees, and potential timelines for program enactment and the initiation of benefits distribution;

     (5)  Examine and address how the State's Temporary Disability Insurance (TDI) program may interface with or complement the paid family and medical leave program, including the feasibility, cost-benefit analysis, and a general roadmap for transitioning the existing private TDI program to an expanded public program that includes or complements paid family and medical leave benefits; and

     (6)  Review any other relevant subject matter items it deems necessary to fulfill its purpose of developing recommendations for the establishment and implementation of a paid family and medical leave program for the State; and

     BE IT FURTHER RESOLVED that the working group is requested to be composed of the following members:

     (1)  The Director of Labor and Industrial Relations, or the Director's designee, to serve as chairperson of the working group;

     (2)  The Chair of the House of Representatives Standing Committee on Labor, or the Chair's designee;

     (3)  The Chair of the Senate Standing Committee on Labor and Technology, or the Chair's designee;

     (4)  The Director of Human Resources Development;

     (5)  A representative from the Hawaii State Teachers Association, to be invited by the chairperson of the working group;

     (6)  A representative from the United Public Workers, AFSCME Local 646, AFL-CIO, to be invited by the chairperson of the working group;

     (7)  A representative from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO, to be invited by the chairperson of the working group;

     (8)  A representative from Aloha United Way, to be invited by the chairperson of the working group;

     (9)  A representative from the American Association of University Women of Hawaii, to be invited by the chairperson of the working group;

    (10)  A representative from an organization representing the interests of businesses with fewer than fifty employees, to be selected and invited by the Senate President;

    (11)  A representative from an organization representing the interests of businesses with fewer than fifty employees, to be selected and invited by the Speaker of the House of Representatives;

    (12)  A representative from AARP Hawaii, to be invited by the chairperson of the working group;

    (13)  A representative from the University of Hawaii Professional Assembly, to be invited by the chairperson of the working group;

    (14)  A representative from Hawaii Children's Action Network Speaks!, to be invited by the chairperson of the working group;

    (15)  A representative from a private insurance company offering Temporary Disability Insurance benefits in the State or an association of insurers, to be selected and invited by the Governor; and

    (16)  Any other individual whom the chairperson of the working group deems necessary or to have relevant experience, knowledge, or expertise, to be selected and invited by the chairperson of the working group; and

     BE IT FURTHER RESOLVED that the working group is requested to identify parameters for a paid family and medical leave program, including:

     (1)  A minimum duration of leave that meets the needs of the State's workers;

     (2)  A system of wage replacement;

     (3)  Coverage for a worker's serious illness, caring for a loved one with a serious illness, bonding with a new child, and needs arising from military deployment and the effects of domestic violence, stalking, and sexual assault;

     (4)  Coverage for all employees of employers who employ one or more employees, and a mechanism for the participation of the self-employed;

     (5)  A definition of "family" or "family member" for whom an individual may take leave for purposes of providing care that is at least as broad as the definition in chapter 398, Hawaii Revised Statutes, the existing Hawaii Family Leave Law; and

     (6)  Employment protections to ensure use of paid family and medical leave does not adversely impact employment; and

     BE IT FURTHER RESOLVED that the working group is requested to utilize independent consultants and administrative facilitators that may be contracted by the Department of Labor and Industrial Relations, as needed, to:

     (1)  Support the working group in performing its duties, including but not limited to providing administrative facilitation and assisting with the working group's:

          (A)  Review of relevant federal and state laws, regulations, and programs;

          (B)  Comparative analyses;

          (C)  Development of recommendations on the parameters of the paid family and medical leave program, including compliance requirements, eligibility criteria, and other program requirements;

          (D)  Development of recommendations on the Department of Labor and Industrial Relations' staffing and operating requirements; and

          (F)  Drafting of the report of its findings and recommendations to the Legislature, including drafting of the proposed legislation; and

     (2)  Assist the Department of Labor and Industrial Relations in conducting the actuarial study as requested in this resolution; and

     BE IT FURTHER RESOLVED that the working group is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, President of the Senate, Speaker of the House of Representatives, Chair of the Senate Standing Committee on Labor and Technology, Chair of the House of Representatives Standing Committee on Labor, Director of Labor and Industrial Relations, and Director of Human Resources Development.

Report Title: 

DLIR; DHRD; Legislative Working Group; Labor; Paid Family and Medical Leave; Report

SENATE RESOLUTION

requesting the Senate standing committee on labor and technology AND house of representatives standing COMMITTEE on Labor to convene a legislative working group to develop recommendations for establishing and implementing a paid family and medical leave program for the state.

     WHEREAS, the United States is the only remaining industrialized nation without mandated access to paid family and medical leave benefits for the private sector employees under federal law; and

     WHEREAS, paid family and medical leave programs have been enacted in thirteen states and Washington, D.C. as of January 2024; and

     WHEREAS, existing Hawaii law does not require employers to provide paid family and medical leave to employees; and

     WHEREAS, the federal Family and Medical Leave Act of 1993 (FMLA) requires employers with fifty of more employees to provide unpaid family and medical leave to their employees and existing Hawaii law requires employers with one hundred or more employees to provide unpaid family leave to their employees; and

     WHEREAS, ninety-six percent of private employers in the State however, have fewer than fifty employees, and are therefore not statutorily required to provide unpaid family and medical leave under the FMLA or family leave under existing state law; and

     WHEREAS, as a result, only one in four private sector workers in the State have access to paid family and medical leave, voluntarily provided by their employers; and

     WHEREAS, according to a May 2020 report published by the AARP and National Alliance for Caregiving, there are nearly forty-eight million family caregivers in the United States, of which sixty-one percent are working while juggling caregiving responsibilities; and

     WHEREAS, a family caregiver is a relative, partner, friend, or neighbor who has a significant personal relationship with, and who provides a broad range of assistance for, an older person or an adult with a chronic, disabling, or serious health condition; and

     WHEREAS, family caregivers are the backbone of the long-term care system in the State, especially in the context of the ongoing health care workforce shortage; and

     WHEREAS, according to the Valuing the Invaluable: 2023 Update report published by AARP in March 2023, there are 154,000 family caregivers in the State, contributing 144 million hours of unpaid services, worth an estimated $2.6 billion; and

     WHEREAS, family caregivers face many physical, emotional, and financial challenges, especially because they are often required to balance unpaid caregiving duties with employment and other personal responsibilities; and

     WHEREAS, a survey conducted in 2023 by AARP and S&P Global showed that sixty-seven percent of family caregivers are having difficulty balancing their jobs with caregiving duties; twenty-seven percent of working caregivers have shifted from full-time to part-time work or have reduced work hours and sixteen percent have turned down a promotion; sixteen percent have stopped working entirely for a period of time; and thirteen percent have changed employers to meet caregiving responsibilities; and

     WHEREAS, during the past two decades, heightened attention has been given to the dual responsibilities of "sandwich generation" caregivers, who are family caregivers sandwiched between a younger generation--children or grandchildren they care for--and an older one--an older family member or friend for whom they also provide care; and

     WHEREAS, in 2019, thirty percent of family caregivers in the United States were sandwich generation caregivers, who generally span ages thirty-five to sixty-four and are more likely than other caregivers to be working while performing their caregiving responsibilities; and

     WHEREAS, as a result of the dual-generation care demands, sandwich generation caregivers report higher levels of emotional and financial strain; and

     WHEREAS, inequity in the existing socio-economic structure and support infrastructure are also subjecting working women and people of color to be unequally burdened by caregiving duties and economic hardships due to caregiving; and

     WHEREAS, a paid family and medical leave program would enable family caregivers to take a limited period of time off from work to care of loved ones without fear of losing their jobs or income; and

     WHEREAS, paid family and medical leave programs are associated with improved outcomes in the earliest years of life for individuals, including higher rates of breastfeeding and immunization and lower rates of child abuse, domestic violence, and financial instability; and

     WHEREAS, in the face of the current workforce shortage, a paid family and medical leave programs would incentivize individuals to join the labor market and improve employee retention, filling gaps and saving employers long-term recruitment and training costs; and

     WHEREAS, most small businesses in the State however, cannot finance a privately-funded paid family and medical leave insurance program that can provide benefits for all of their employees; and

     WHEREAS, a state-administered paid family and medical leave program would benefit the State's workforce while reducing the financial burden for employers compared to a privately funded alternative; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, that the Senate Standing Committee on Labor and Technology and House of Representatives Standing Committee on Labor are requested to convene a legislative working group to develop recommendations for establishing and implementing a paid family and medical leave program for the State; and

     BE IT FURTHER RESOLVED that the working group is requested to:

     (1)  Recommend parameters for a statewide paid family and medical leave program that benefits both public and private sector workers;

     (2)  Review the impact of federal and state regulations on the establishment of a paid family and medical leave program;

     (3)  Develop an implementation plan that outlines an administrative framework for paid family and medical leave, including departmental oversight, projected costs, employer and employee contribution rates, staffing needs, outreach to employers and employees, and potential timelines for program enactment and the initiation of benefits distribution; and

     (4)  Examine and address how the State's Temporary Disability Insurance (TDI) program may interface with or complement the paid family and medical leave program, including the feasibility, cost-benefit analysis, and a general roadmap for transitioning the existing private TDI program to an expanded public program that includes or complements paid family and medical leave benefits; and

     BE IT FURTHER RESOLVED that the working group is requested to be composed of the following members:

     (1)  The Director of Labor and Industrial Relations, or the Director's designee, to serve as chairperson of the working group;

     (2)  The Chair of the House of Representatives Standing Committee on Labor, or the Chair's designee;

     (3)  The Chair of the Senate Standing Committee on Labor and Technology, or the Chair's designee;

     (4)  The Director of Human Resources Development;

     (5)  A representative from the Hawaii State Teachers Association, to be invited by the chairperson of the working group;

     (6)  A representative from the United Public Workers, AFSCME Local 646, AFL-CIO, to be invited by the chairperson of the working group;

     (7)  A representative from the Hawaii Government Employees Association, to be invited by the chairperson of the working group;

     (8)  A representative from Aloha United Way, to be invited by the chairperson of the working group;

     (9)  A representative from the American Association of University Women of Hawaii, to be invited by the chairperson of the working group;

    (10)  A representative from an organization representing the interests of businesses with fewer than fifty employees, to be selected and invited by the Senate President;

    (11)  A representative from an organization representing the interests of businesses with fewer than fifty employees, to be selected and invited by the Speaker of the House of Representatives;

    (12)  A representative from AARP Hawaii, to be invited by the chairperson of the working group;

    (13)  A representative from Hawaii Children's Action Network Speaks!, to be invited by the chairperson of the working group; and

    (14)  A representative from a private insurance company offering Temporary Disability Insurance benefits in the State or an association of insurers, to be selected and invited by the Governor; and

     BE IT FURTHER RESOLVED that the working group is requested to identify parameters for a paid family and medical leave program, including:

     (1)  A minimum duration of leave that meets the needs of the State's workers;

     (2)  A system of wage replacement;

     (3)  Coverage for a worker's serious illness, caring for a loved one with a serious illness, bonding with a new child, and needs arising from military deployment and the effects of domestic violence, stalking, and sexual assault;

     (4)  Coverage for all employees of employers who employe one or more employees, and a mechanism for the participation of the self-employed;

     (5)  A definition of "family" or "family member" for whom an individual may take leave for purposes of providing care that is at least as broad as the definition in chapter 398, Hawaii Revised Statutes, the existing Hawaii Family Leave Law; and

     (6)  Employment protections to ensure use of paid family and medical leave does not adversely impact employment; and

     BE IT FURTHER RESOLVED that the working group is requested to review independent studies, research, and other information regarding paid family and medical leave; and

     BE IT FURTHER RESOLVED that the working group is requested to utilize independent consultants and administrative facilitators, including the Legislative Reference Bureau, as needed to assist in the performance of its duties, including but not limited to the preparation of the report to the Legislature; and

     BE IT FURTHER RESOLVED that the working group is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, President of the Senate, Speaker of the House of Representatives, Chair of the Senate Standing Committee on Labor and Technology, Chair of the House of Representatives Standing Committee on Labor, Director of the Legislative Reference Bureau, Director of Labor and Industrial Relations, and Director of Human Resources Development.

Report Title: 

DLIR; DHRD; LRB; Legislative Working Group; Labor; Paid Family and Medical Leave; Report

STAND. COM. REP. NO. 1548

Honolulu, Hawaii

RE:    S.R. No. 117

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Labor and Technology, to which was referred S.R. No. 117 entitled:

"SENATE RESOLUTION REQUESTING THE SENATE STANDING COMMITTEE ON LABOR AND TECHNOLOGY AND HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON LABOR TO CONVENE A LEGISLATIVE WORKING GROUP TO DEVELOP RECOMMENDATIONS FOR ESTABLISHING AND IMPLEMENTING A PAID FAMILY AND MEDICAL LEAVE PROGRAM FOR THE STATE,"

begs leave to report as follows:

     The purpose and intent of this measure is to request the Senate Standing Committee on Labor and Technology and House of Representatives Standing Committee on Labor to convene a legislative working group to develop recommendations for establishing and implementing a paid family and medical leave program for the State.

     Your Committee received testimony in support of this measure from the Office of Wellness and Resilience; Executive Office on Aging; one member of the Hawaiʻi County Council; Holomua Collaborative; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Hawaiʻi State Teachers Association; United Public Workers, AFSCME Local 646, AFL-CIO; Hawaii Children's Action Network Speaks!; Hawaii State Commission on the Status of Women; Catholic Charities Hawaiʻi; Parents and Children Together; Hawaii State AFL-CIO; Hawaiʻi Nurses' Association – OPEIU Local 50; Hawaiʻi Family Caregiver Coalition; Democratic Party of Hawaiʻi Education Caucus; Democratic Party of Hawaiʻi; Hawaiʻi State Coalition Against Domestic Violence; Hawaiʻi Public Health Institute; Imua Alliance; Indivisible Hawaiʻi; Wainiha Country Market Inc; Aloha United Way; AAUW Hawaii; Pride at Work‑Hawaiʻi; and thirty-nine individuals.

     Your Committee received comments on this measure from the Department of Labor and Industrial Relations, Department of Human Resources Development, Legislative Reference Bureau, University of Hawaii Professional Assembly, Maui Chamber of Commerce, and Society of Human Resources Management – Hawaii.

     Your Committee finds that paid family and medical leave programs demonstrably improve quality of life for workers and their families and increase recruitment and retention rates for employers.  However, existing laws do not require non-federal employers to provide paid family and medical leave benefits to their employees.  Your Committee further finds that most small businesses in the State cannot finance a privately-funded paid family and medical leave program, and therefore, only one in four private sector employees in the State have access to paid family and medical leave benefits.  Your Committee believes that establishment of a state-administered paid family and medical leave program would benefit the State's workforce while reducing the financial burden on the employers, compared to a privately‑funded alternative.  This measure will allow the Legislature to make an informed decision on how best to establish and implement a paid family and medical leave program for all workers in the State.

     Your Committee has amended this measure by:

     (1)  Requesting the Department of Labor and Industrial Relations, rather than the Senate Standing Committee on Labor and Technology and House of Representatives Standing Committee on Labor, to convene the working group;

     (2)  Inserting language requesting the Department of Labor and Industrial Relations to conduct an actuarial study of the State's workforce, employers, potential beneficiaries, and other elements necessary to implement a paid family and medical leave program;

     (3)  Inserting language requesting the working group to review the impacts of federal and state laws, including the federal Employee Retirement Income Security Act of 1974; federal Family and Medical Leave Act of 1993; Prepaid Health Care Act, codified at chapter 393, Hawaii Revised Statutes; and Hawaii Family Leave Law, codified at chapter 398, Hawaii Revised Statutes, and any relevant programs, on the establishment of a paid family and medical leave program;

     (4)  Inserting language requesting the working group to consider the findings of the actuarial study conducted by the Department of Labor and Industrial Relations in developing an implementation plan for a paid family and medical leave program;

     (5)  Inserting language requesting the working group to review, in addition to those specified in this measure, any other relevant subject matter item the working group deems necessary to fulfill its purpose;

     (6)  Inserting language requesting that the working group include as members to be invited by its chairperson:

          (A)  A representative from the University of Hawaii Professional Assembly; and

          (B)  Any other individual whom the chairperson deems necessary or to have relevant experience, knowledge, or expertise;

     (7)  Deleting language that would have requested the working group to utilize the Legislative Reference Bureau to assist in the performance of its duties;

     (8)  Inserting language requesting the Department of Labor and Industrial Relations to contract with independent consultants and administrative facilitators to support and assist the working group and Department of Labor and Industrial Relations in performing the duties requested in this measure;

     (9)  Amending its title accordingly; and

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

     As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 117, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 117, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,