Hawaii has increased the penalties for employers who do not to adhere to state labor laws. On July 1, Gov. David Ige approved stricter punishments for companies who fail to meet the requirements for workers’ compensation insurance, temporary disability insurance, and breaking prevailing wage laws on public construction projects.
Act 187, in part, increases the penalties for not having TDI coverage, for failure to make correct or timely benefit payments, for terminating such benefits, for failure to file medical reports, for employer’s failure to provide copies of requested medical reports, for not having Workers’ Compensation coverage, and for the deduction of premium payment from employee wages.
Penalties for workers’ compensation insurance went from $10 per employee per day to $100 per employee per day, the first increase in 28 years. The penalty for non-compliance with maintaining temporary disability insurance increased from $1 per employee per day to $100 per employee per day. TDI penalties had not changed since they were first established 47 years ago in 1969.
Act 192 increases penalties for contractors who violate wages and hours laws.
The penalties for violations of Hawaii’s prevailing wage laws on public construction projects are changed from 10% to 25% of the amount of back wages due or $250 per offense for a first offense; from $100 to $500 or the equivalent of the back wages due for a second offense within two years; and for a third offense within three years of the second violation from $200 or the amount of back wages to two times the amount of back wages or $1,000 per offense and be suspended from any new public works project for three years.
This is another coup for Local 3, District 17 and our office, the Hawaii Operating Engineers Industry Stabilization Fund, as we continue to strive to create an atmosphere of fair, competitive, and safe contracting for the benefit of the entire construction industry. Act 187 and 192 will aide in our efforts to improve job security and wage growth for union construction employees.
In April 2015, the Department of Transportation picked Hawaiian Dredging Construction Co., Inc. for a $290 million project on Maui that included roadway improvements and building the Consolidated Car Rental (CONRAC) Facility at Kahului Airport. In December 2015, that amount was raised another $41,394,018, making the project worth $331,394,018 for the year, thus making HDCC the top contractor for the month of December.
Congratulations to one of our own, Road and Highway Builders, for securing the $61.0 million project on the Big Island.
Sterling Construction Company, Inc. today announced that its affiliate, signatory contractor Road and Highway Builders, LLC (RHB), is the apparent low bidder on a $61.0 million Federal Highway Administration (FHWA) project to perform reconstruction work on a 6.6 mile stretch of the Daniel K. Inouye Highway on the “Big Island” of Hawaii. The project, which will begin in the first quarter of 2016 and be completed in approximately two years, will require 800,000 cubic yards of excavation, construction of several large concrete structures, and 80,000 tons of asphalt paving.
Currently five miles of elevated guideway work for the Honolulu Authority for Rapid Transportation in the Waipahu area are nearing completion and guideway support columns are going up through the Kamehameha Highway corridor.
To date, half of HART’s contracts have been awarded, and include awards to signatory contractors Hawaiian Dredging Construction and Nan Inc. All remaining contracts are expected to be assigned by the middle of 2016. Currently, HART’s projected cost is about $6 billion.
On behalf of everyone at HOEISF, I hope you had a wonderful Thanksgiving holiday!
If you did perform work on Thursday, November 26th, please be sure to read over your pay stub to ensure you were paid the correct wages. Per the current Hawaii Wage Rate Schedule, Operating Engineers are entitled to TWO TIMES basic hourly rate PLUS required hourly fringe benefits.
If you have friends or family that worked for non-signatory companies on Thanksgiving Day and did not receive the correct wages, please fill out our contact form and we will look into it. All correspondence is strictly confidential.