House Bill No 755
Hawaii’s legislative season is in full swing and 2 bills that have caught the eye of the public are HB #755 and HB #425 relating to paid family medical leave. As it stands, the United States is the only developed country that does not offer its citizens paid family medical leave. While some states have begun to offer this benefit, supporters of this bill hope that Hawaii will be the next state to pass this legislation.
Imagine this, you and your partner discover that you are expecting a tiny bundle of joy! As you prepare for your family to grow, you are informed by your employer that you are only eligible for 6 weeks of Temporary Disability which only supplements 60% of your pay. However, when the time comes to give birth, you experience some complication and are forced to do an emergency C- section. While you are home still recovering, you and your partner have to decide between you recovering your health at home or going back to work to support your family financially. Who could make such an impossible decision? Sadly, this is the reality for many Hawaii families! Many of the testimonies in strong support of this bill shared similar stories of having to choose to care for their families or themselves or pay the bills to survive in the most expensive state. Paid Family medical leave proposes that Hawaii employees be allowed paid leave while caring for themselves or family members during times of emergency or crisis.
While the bills have garnered a lot of support, those who oppose the bills have concerns about adding additional taxes and fee’s to small business owners who are already struggling to stay afloat. HB No. 425 is written that the Paid Family leave benefit be extended to only state and county workers, which would not affect small business owners. However, those many supports of HB No. 425 bill suggest stronger support for HB No 755 that will extend this benefit to all and not just State and County workers. In testimony given by Nicole Woo from Hawaii Children’s Action Network, she shared it’s not realistic to assume that every family has someone who works for the state or county and that this benefit needs to be extended to everyone in Hawaii.
Who’s paying for it?
The number one concern for the who oppose the bill is where will the money come from. Business owners are concerned about the additional taxes they will need to dish out for their employees. HB No 755 propose that in January 2028 employers begin contributing to a fund to support this measure and in July 2029 people can begin to apply and receive benefits as needed. The concern by those who oppose bill is that business owners are already required to provide medical insurance for employees and many already offer PTO to their employee’s. The concern about where the funding will come from is valid, but supporters of the bill insist that the employer will not be paying extra then they already have to and have produced research that suggest employee retentions are higher as a result of this benefit.
Where is the Bill at now?
On February 12, 2025 HB No 755 passed with amendments through its committee hearing and is on its way to the Finance committee for a hearing to review its financial implications. This bill would be a game changer for Hawaii and I look forward to following it and seeing where it lands.
Additional Information
https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=755&year=2025
https://www.capitol.hawaii.gov/sessions/session2025/bills/HB755_HD2_.HTM
