HI SB2118

Requires disbursing officers to provide employees written notice at least 30 calendar days before deducting wages to recover overpayments or other indebtedness to the state.

Limits wage deductions for recovering employee indebtedness to no more than 5% of gross income per pay period, unless the employee requests a higher deduction amount.

Repeals the existing requirement that disbursing officers immediately begin recovering indebtedness regardless of whether the employee has a pending contested case.

Eliminates the previous structure requiring minimum $100 per pay period deductions or one-quarter of salary for debts over $1,000.

Takes effect January 1, 2077.