05/06/1994 04:58 PM Senate JUD

  CHAIRMAN ROBIN TAYLOR  called the Judiciary Committee meeting to             
 order at 4:58 p.m.  He then brought  CSHB 459(JUD) am  (DAMAGES &             
 ATTY FEES FOR UNPAID WAGES) before the committee and noted there              
 was a proposed Judiciary SCS for the committee's consideration.               
                                                                               
 Number 005                                                                    
                                                                               
 SENATOR HALFORD moved the adoption of SCS CSHB 459(JUD).  Hearing             
 no objection, the motion carried.                                             
                                                                               
 Number 008                                                                    
                                                                               
 C.J. ZANE, testifying in support of SCS CSHB 459(JUD), explained              
 that the legislation is a wage and hour reform that does three                
 major things:                                                                 
                                                                               
  (1) It restores to the Department of Labor the authority to                  
 settle  claims for overtime and wage disputes for less than the               
 automatic doubling of liquidated damages in cases where that                  
 warrants.                                                                     
                                                                               
  (2) It provides for private settlements whereby the                          
 employer/employee can enter into a private settlement so long as              
 the employer discloses in writing to the employee that they have              
 the right to take the settlement agreement to an attorney and/or              
 the Department of Labor.  It also gives them seven days to review             
 that agreement, and after they sign the agreement, it gives them              
 five days to rescind the agreement.                                           
                                                                               
  (3)  It provides for a good faith and reasonable belief                      
 defense against the doubling of liquidated damages only.                      
                                                                               
 Mr. Zane noted that the legislation has wide support although the             
 trial attorneys have not taken a position on it.                              
                                                                               
 Number 028                                                                    
                                                                               
 REPRESENTATIVE ELDON MULDER said that SCS CSHB 459(JUD) is a                  
 consensus piece of legislation and extensive work was done with the           
 Department of Labor to make sure that protections were built into             
 the bill for both the employers and employees.  He urged the                  
 committee's support for the legislation.                                      
                                                                               
 Number 030                                                                    
                                                                               
 SENATOR JACKO asked if the legislation was good for attorneys or              
 bad for attorneys.  SENATOR TAYLOR said under current law the                 
 prevailing plaintiff is the only one that gets full attorneys fees.           
 This legislation provides that either party who prevails gets full            
 attorneys fees against the other.                                             
                                                                               
 Number 048                                                                    
                                                                               
 SENATOR DONLEY said there has been a lot of concern expressed about           
 the legislation, and although he thinks it is a good idea, he would           
 like to find a way to mitigate some of the concerns about it.                 
                                                                               
 Number 062                                                                    
                                                                               
 SENATOR HALFORD suggested that a written opinion that the bill does           
 not need a resolution for the title change should be obtained                 
 before the bill goes to the Senate floor.  KEVIN SULLIVAN,                    
 committee aide, stated he had a verbal opinion that one was not               
 needed, but that he would request a written one.                              
                                                                               
 Number 070                                                                    
                                                                               
 SENATOR DONLEY moved that on page 2, line 12, after the word                  
 "shows" insert "by clear and convincing evidence that it was in               
 good faith."  SENATOR HALFORD objected.  The roll was taken with              
 the following result:  Senators Donley and Little voted "Yea" and             
 Senators Jacko, Halford and Taylor voted "Nay."  The Chairman                 
 stated the amendment failed.                                                  
                                                                               
 Number 100                                                                    
                                                                               
 SENATOR DONLEY moved that on page 2, line 17 or line 20, add the              
 sentence "Ignorance of the law does not constitute good faith under           
 this section."  SENATOR JACKO objected.  The roll was taken with              
 the following result:  Senators Donley, Little and Taylor voted               
 "Yea" and Senators Jacko and Halford voted "Nay."  The Chairman               
 stated the amendment was adopted.                                             
                                                                               
 SENATOR TAYLOR stated he would entertain a motion to move the bill            
 from committee.                                                               
                                                                               
 Number 122                                                                    
                                                                               
 SENATOR HALFORD moved that SCS CSHB 459(JUD) be passed out of                 
 committee with individual recommendations.  SENATOR JACKO objected.           
 The roll was taken with the following result:  Senators Halford,              
 Little, Donley and Taylor voted "Yea" and Senator Jacko voted                 
 "Nay."  The Chairman stated the motion carried.                               
                                                                               
 There being no further business to come before the committee, the             
 meeting was adjourned at 5:08 p.m.