HB 1352 Summary

• Establishes a new short-time compensation program in Hawaii allowing employers to reduce employee work hours by 10-60% as an alternative to layoffs, with affected employees receiving partial unemployment benefits.

• Requires employers to submit applications to the Director of Labor and Industrial Relations for approval, including details on affected workers, hours reduction percentage, worker notification procedures, and certification that health and retirement benefits continue unchanged.

• Directors must approve or disapprove applications within a specified timeframe and may revoke approval for good cause; approved plans expire after 12 months maximum unless earlier terminated by employer or director.

• Eligible employees receive weekly short-time compensation equal to regular unemployment benefits multiplied by the percentage of hours reduced; benefits are capped at 52 weeks and cannot exceed total regular unemployment compensation maximums for the benefit year.

• Short-time compensation charges apply to employers the same as regular unemployment compensation charges, and employees exhausting short-time compensation become eligible for extended benefits programs.