Haw. Code R. § 12-506-5

Current through November, 2024

Section 12-506-5 - Partial closing

(a) In order for there to be a partial closing, there shall be:

(1) A sale, transfer, merger, and other business takeover or transaction of business interests; and

(2) A permanent shutting down of a portion of operations within a covered establishment due to paragraph (1); and

(3) An actual or potential termination of a portion of the employees of a covered establishment by the employer as a result of paragraph (2).

(b) Business shutdowns which occur as a direct result of or in connection with factors such as business failure, bankruptcy, or loss of lease or contract are not considered partial closings for the purposes of chapter 394B, HRS.

Examples:

Corporation A has branch operations in various cities throughout the country. Corporation A sells the Hawaii branch with 80 employees to a Honolulu hui. As a result of the sale, 30 employees of the Corporation A Hawaii branch are laid off. For the purposes of chapter 394B, there has been a partial closing of Corporation A and a lay-off of a portion of the employees.

Exetor Company, with 200 employees, recently was purchased by M Enterprises. Exetor decides that the data processing department is no longer needed because they are able to get data processing from M Enterprises' data processing division and thus lays off the data processing employees. For the purpose of chapter 394B, HRS, there has been a partial closing of Exetor Company and a lay-off of a portion of the employees.

Pine Company was purchased outright by Company M. As a direct result of the sale, 300 of the 400 employees of Pine Company are laid off gradually over a two-year period. For the purposes of chapter 394B, HRS, there has been a partial closing of Pine Company and a lay-off of a portion of employees.

Haw. Code R. § 12-506-5

[Eff: 8/15/88] (Auth: HRS § 394B-10) (Imp: HRS § 394B-2)