(a) An employer in a covered establishment shall provide to each employee and the director written notification of a closing, divestiture, partial closing, or relocation at least sixty days prior to its occurrence.
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Terms Used In Hawaii Revised Statutes 394B-9

  • Closing: means the permanent shutting down of all operations within a covered establishment due to the sale, transfer, merger, other business takeover or transaction of business interests, bankruptcy, or other close of business transaction that results in or may result in the layoff or termination of employees of a covered establishment by the employer. See Hawaii Revised Statutes 394B-2
  • Covered establishment: means any industrial, commercial, or other business entity that employs at any time in the preceding twelve-month period, fifty or more persons. See Hawaii Revised Statutes 394B-2
  • Department: means the department of labor and industrial relations. See Hawaii Revised Statutes 394B-2
  • Director: means the director of labor and industrial relations. See Hawaii Revised Statutes 394B-2
  • Divestiture: means the transfer of any covered establishment from one employer to another because of the sale, transfer, merger, bankruptcy, or other business takeover or transaction of business interests that causes the covered establishment's employees to become dislocated workers. See Hawaii Revised Statutes 394B-2
  • Employee: means any individual engaged in service to an employer. See Hawaii Revised Statutes 394B-2
  • Employer: means any individual or entity that, directly or indirectly, owns, operates, or has a controlling interest in a covered establishment, excluding the State or any political subdivision thereof. See Hawaii Revised Statutes 394B-2
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Partial closing: means the permanent shutting down of a portion of operations within a covered establishment due to the sale, transfer, merger, and other business takeover or transaction of business interests and results in or may result in the termination of a portion of the employees of a covered establishment by the employer. See Hawaii Revised Statutes 394B-2
  • Relocation: means the removal of all or substantially all of the industrial, commercial, or business operations in a covered establishment to a location outside the State of Hawaii. See Hawaii Revised Statutes 394B-2
(b) An employer that violates this section shall be liable to each affected employee for an amount equal to back pay and benefits for the period of violation not to exceed sixty days. This liability may be reduced by any:

(1) Wages the employer pays during the notice period; and
(2) Voluntary and unconditional payment not required by a legal obligation.
(c) An employer of a covered establishment that is actively seeking a buyer for a sale, transfer, or merger shall not be required to provide the notice required under subsection (a) until the employer has entered into a binding agreement for the sale, transfer, or merger of the covered establishment that results in a divestiture.
(d) An employer who fails to provide notice under this section shall be subject to a civil penalty not to exceed $500 for each day of the violation and the amount shall be deposited in the employment and training fund under § 383-128; provided that the employer may avoid the penalty if the employer satisfies its liability to each affected employee within three weeks after the closing. In any suit, the court, in its discretion, may award the prevailing party reasonable attorney’s fees and costs.
(e) The department shall enforce this section and shall have all the powers and duties conferred and imposed upon it pursuant to section 371-12.

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