HI HB1166

Requires successor employers to hire all incumbent nonsupervisory and nonconfidential employees when a covered establishment with 100+ employees is divested, unless business needs are substantially reduced or fundamentally dissimilar.

Permits successor employers to conduct pre-hire screening including criminal background checks and drug testing in accordance with state law.

Establishes a tax credit for qualified taxpayers who retain all incumbent nonsupervisory and nonconfidential employees for at least one year following a divestiture.

Allows successor employers to retain fewer than 100% of employees only when human resource needs are reduced proportionally or the business is substantially dissimilar, with excess credit amounts carried forward to future years.

Requires employers violating this section to compensate dislocated workers for the difference between their former salary and unemployment insurance benefits received, effective July 1, 2011.