WeVote
Log In

Bill

Bill

SB 2122

RELATING TO CAFETERIA PLANS.

2026 Regular Session Introduced by Stanley Chang and 3 co-sponsors

SB 2122 modifies Hawaii cafeteria plans allowing employees tax-advantaged savings for healthcare and dependent care expenses; passed committee with amendments pending budget review.

Reported from LBT (Stand. Com. Rep. No. 2115) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
#cafeteriaplans #carryoverlimits #flexiblespendingaccounts #maximumcontributions #publicservice #wageandsalaryreductionbenefitprograms
0
WeVote Research Nonpartisan
Bill Summary · SB 2122

Legislative bill overview

SB 2122 modifies Hawaii's cafeteria plan regulations, which allow employees to set aside pre-tax dollars for eligible expenses like health insurance premiums and dependent care. The bill passed the Labor and Business Committee with amendments and is moving toward the Ways and Means Committee for budgetary review. The specific amendments and details are not disclosed in the legislative record provided.

Why is this important

Cafeteria plans directly affect workers' take-home pay and access to benefits, particularly for lower-income employees who benefit most from tax savings on healthcare costs. Changes to these plans can influence employer-sponsored benefit participation rates and overall employee financial security across Hawaii's private sector workforce.

Potential points of contention

  • Tax revenue impact: Expanding pre-tax benefit deferrals could reduce state tax collections, which is why the bill requires Ways and Means review
  • Small business compliance burden: Modifications to plan administration requirements could create administrative costs for small employers
  • Dependent care provisions: Changes to dependent care expense eligibility or limits may affect working parents' ability to afford childcare

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.