§78-13  Salary periods.  (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.



The implementation of the after-the-fact payroll
shall not be subject to negotiation under chapter 89.



(b)  If an employee has been working for the
State for at least six months, has no paid leave accumulated, and has an
existing salary overpayment balance:



(1)  The employee may be paid the employee's salary on
the same pay dates and for the same pay periods as non-salaried employees.



(2)  Upon accumulation of eighty hours of paid leave,
the employee shall be paid the employee's salary on the same pay dates and for
the same pay periods as salaried employees.



(c)  If an employee has been working for the
State for at least six months and has had at least two incidents of leave which
results in salary overpayment within the past six months:



(1)  The employee may be paid the employee's salary on
the same pay dates and for the same pay period as non-salaried employees.



(2)  If there are no incidents of leave which result
in salary overpayment for a subsequent four-month period, the employee shall be
paid the employee's salary on the same pay dates and for the same pay periods
as salaried employees.



(d)  The implementation of subsections (b) and
(c) shall not be subject to negotiation under chapter 89.



(e)  All employees, except those belonging to
bargaining units 5 and 7, hired on or after July 1, 1998, shall be paid on the
same pay dates and for the same pay periods as non-salaried employees. [L 1961,
c 130, §1; am L 1963, c 60, §1; Supp, §5-14.5; HRS §78-13; am L 1974, c 129,
§1; am L 1996, c 80, §1; am L 1997, c 355, §1; am L 1998, c 109, §1 and c 110,
§3]



 



Revision Note



 



  Subsection (e)
redesignated pursuant to §23G-15(1).



 



Attorney General Opinions



 



  Payments on biweekly
rather than on semimonthly basis held valid.  Att. Gen. Op. 64-11.



 



Case Notes



 



  District court did
not abuse its discretion in granting plaintiffs' motion for a preliminary
injunction, where court granted a preliminary injunction against operation of
Act 355, L 1997 (which amended this section), State's "pay lag" law,
on the ground that it impaired the obligations of the employees' collective
bargaining agreement in violation of the contract clause of the U.S.
Constitution.  183 F.3d 1096.



  Plaintiffs' motion
for a preliminary injunction granted, where plaintiffs filed motion seeking to
enjoin defendants from delaying payroll under Act 355, L 1997 (which amended
this section), with respect to University of Hawaii faculty members, arguing
that Act 355 violated the contract clause of the U.S. Constitution because a
five-day delay in pay violated the collective bargaining agreement between the
State and the faculty members at the University.  16 F. Supp. 2d 1242.



  Where there was no
existing contract that Act 355, L 1997 (amending this section), impaired, no
contracts clause violation possible and injunction no longer needed; the case
was moot.  125 F. Supp. 2d 1237.



  Based upon the
legislative history of this section, and where it could not be said that the
objective of Act 355, Session Laws of Hawaii 1997, which was to balance the
state budget by amending this section, was not achieved, the specific
implementation dates set forth in this section were mandatory.  111 H. 168, 140
P.3d 401.



  The Act 355, Session
Laws of Hawaii 1997 amendment to this section, which essentially altered the
dates when public employees are to be paid, did not violate article XIII, §2 of
the Hawaii constitution nor chapter 89 inasmuch as they did not prohibit a
state employer from changing the pay dates of its employees; thus, the Act 355
amendment was not unconstitutional.  111 H. 168, 140 P.3d 401.



  Where plaintiffs
failed to demonstrate that bargaining over pay dates was one of the core
subjects of collective bargaining that triggers a violation of article XIII, §2
of the Hawaii constitution, and failed to provide the supreme court with their
collective bargaining agreement to support their contention that pay dates are
bargainable, and these pay dates were not specifically incorporated into their
contract, the Act 355, Session Laws of Hawaii 1997 amendment to this section to
unilaterally alter the "traditional practice" of being paid on the
fifteenth day and last day of the month did not violate their right to
collectively bargain pay periods.  111 H. 168, 140 P.3d 401.