Bill > SB185

This bill modifies Hawaii's law regarding how government agencies recover salary or wage overpayments from employees, establishing new notification and repayment requirements. The bill mandates that when a disbursing officer determines an employee has been overpaid, they must notify the employee in writing within sixty days and do so within two years of the original overpayment. The bill introduces a graduated repayment structure based on an employee's gross income per pay period: for employees earning less than $2,000, the maximum deduction is 5% or a mutually agreed amount of at least $50; for employees earning between $2,000 and $3,000, the maximum deduction is 15% or a mutually agreed amount of at least $75; and for employees earning over $3,000, the maximum deduction is 25% or a mutually agreed amount of at least $100. The bill also allows employees to contest the determination of indebtedness and request a hearing, and permits employees and appointing authorities to offset remaining indebtedness using leave or compensatory time credits. The changes are designed to provide more flexible and proportional repayment options based on an employee's income level, while ensuring a clear and timely process for addressing overpayments. The bill is set to take effect on July 1, 2050.

Justice, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=185&year=2026