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Council to report out resolution allowing up to $16.78 million for Teamsters hazard-pay settlement, capped at $7,500 per worker

Committee on Budget and Fiscal Services, City and County of Honolulu · April 1, 2026
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Summary

Budget Committee recommended reporting Resolution 26-74 out for adoption, authorizing up to $16,777,253 for a proposed supplemental agreement to pay hazard pay to Teamsters-represented workers (cap $7,500 per eligible worker); administration said the union had been provided the proposal but had not finalized distribution rules.

The Budget Committee on March 31 recommended reporting Resolution 26-74 out for adoption, a measure that would authorize transfers not to exceed $16,777,253 for supplemental hazard-pay agreements with Teamsters-represented employees.

Budget Director Andrew Kawano said the administration proposed a maximum per-employee cap of $7,500 plus the employer portion of payroll taxes and had provided the proposal to the union's president. "The proposal has been provided to the union president. We don't have agreement yet on the amount," Kawano said.

Managing Director Mike Formby told the committee the City intends to be fair to workers and to resolve questions about eligibility, noting prior settlement/administration rules excluded employees who teleworked full time. Councilmembers pressed administration on how eligibility and distribution would be handled; Formby and Kawano said the union (Teamsters) would decide allocation across eligible members within the Council-approved cap.

Corporation Counsel provided written legal advice to the Council that the proposed agreements qualified as supplemental agreements and did not require a separate resolution in some prior circumstances; the committee proceeded by recommending the resolution be reported out for adoption so Council could finalize the matter.

The committee did not record a final vote tally in the transcript; the Chair recommended the resolution be reported out for adoption and said the administration would return with necessary details.