Bill > HB1656

This bill amends existing law regarding how the state recovers money owed by its employees, known as indebtedness. Previously, a disbursing officer, who is responsible for paying employees, had specific rules for deducting amounts from an employee's salary, wages, or compensation, with different rules for debts under or over $1,000. Now, the bill requires the disbursing officer to provide the employee with a written statement at least thirty days before any deductions begin, detailing the total amount owed and the deduction amount. Crucially, the bill limits deductions to no more than five percent of an employee's gross income per pay period, unless the employee voluntarily agrees to a higher deduction. The bill also allows for employees and their employers to agree to use the value of accrued leave or compensatory time credits to offset any remaining debt, with certain conditions to prevent immediate cash payouts of that leave.

Budget and Finance, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1656&year=2026