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HRS §323F-57

What happens to workers when a state facility is transferred

When a state facility is transferred to a private company, the company must talk with employee unions about how it affects workers and how to reduce layoffs. The company must offer jobs to all current workers for at least six months after the transfer. Workers keep their earned benefits, and the company must help make the switch to private employment smooth.

employeesemployersstate agencies

The statute, as written — Employment, wages, and benefits

(a) The corporation and the unions representing employees of the facility or facilities shall meet to discuss the impact of a transfer on the employees and the feasibility of tempering the adverse effect of layoffs by amending the employees' collective bargaining agreements pursuant to section 89-8.5. (b) The employees working at a transferred facility shall be subject to laws and regulations that apply to private sector employees. The employees of a private entity or its nonprofit management entity shall not be governed by state laws that apply to public officers and employees of the State including but not limited to section 76-16(b) and all other sections of chapter 76, chapters 89, 89A, and 89C, and any other laws and regulations that govern public or government employment in the State. (c) The private entity or its nonprofit management entity shall offer all employees of the pre-transfer facility, employment for a period of no less than six months after the transfer completion date. (d) No employee of the corporation who is separated from service as a result of implementation of an agreement and transfer under this part shall suffer any loss of any previously earned rights, benefits or privileges. (e) Subject to subsection (c), the private entity or its nonprofit management entity shall take all reasonable steps necessary to provide for a smooth transition of employees from state employment to private employment by the private entity or its nonprofit management entity at a transferred facility.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§76-16 Which jobs are exempt from civil service hiring rules

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.