Report Title:

Public Works; Wages and Hours

Description:

Requires compliance with staffing requirements of DLIR for assistants, helpers, and apprentices; clarifies that prevailing wage law on public contracts applies to any laborers and mechanics required to be employed by the contractor, and requires contractor to pay wages and overtime compensation to the required assistants, helpers, tenders, and apprentices. Effective July 1, 2025. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1103

TWENTY-SECOND LEGISLATURE, 2004

H.D. 2

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

RELATING TO PROCUREMENT

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 103-55.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Before any bidder or offeror enters into a contract for construction of a public work project in excess of $2,000, which is subject to chapter 104, the bidder or offeror shall affirm the bidder's or offeror's intent to comply with the requirements of chapter 104 by certifying that:

(1) Individuals engaged in the performance of the contract on the job site shall be paid:

(A) Not less than the wages that the director of labor and industrial relations shall have determined to be prevailing for corresponding classes of laborers and mechanics employed on public works projects; and

(B) Overtime compensation at one and one-half times the basic hourly rate plus fringe benefits for hours worked on Saturday, Sunday, or a legal holiday of the State or in excess of eight hours on any other day; [and]

(2) All applicable laws of the federal and state governments relating to workers' compensation, unemployment compensation, payment of wages, and safety shall be fully complied with[.]; and

(3) All applicable requirements of the department of labor and industrial relations as to staffing requirements, including requirements to have an assistant, helper, or apprentice, as a prevailing practice, shall be fully complied with."

SECTION 2. Section 104-2, Hawaii Revised Statutes, is amended by amending subsections (b) to (e) to read as follows:

"(b) Every laborer and mechanic [performing] required to perform work on the job site for the construction of any public work project shall be paid no less than prevailing wages; provided that:

(1) The prevailing wages shall be not less than the wages that the director of labor and industrial relations, under the rules, shall have determined to be the prevailing wages for corresponding classes of laborers and mechanics on projects of similar character in the State;

(2) The prevailing wages shall be not less than the wages payable under federal law to corresponding classes of laborers and mechanics employed on public works in the State that are prosecuted under contract or agreement with the government of the United States; and

(3) Notwithstanding the provisions of the original contract, the prevailing wages shall be periodically adjusted during the performance of the contract in an amount equal to the change in the prevailing wage as periodically determined by the director.

(c) No laborer or mechanic required to be employed on the job site of any public work project of the State or any political subdivision thereof shall be permitted or required to work on Saturday, Sunday, or a legal holiday of the State or in excess of eight hours on any other day unless the laborer or mechanic receives overtime compensation for all hours worked on Saturday, Sunday, and a legal holiday of the State or in excess of eight hours on any other day. For purposes of determining overtime compensation under this subsection, the basic hourly rate of any laborer or mechanic shall not be less than the basic hourly rate determined by the director to be the prevailing basic hourly rate for corresponding classes of laborers and mechanics on projects of similar character in the State.

(d) The contractor or the contractor's subcontractor shall pay all mechanics and laborers required to be employed on the job site, unconditionally and not less often than once a week, and without deduction or rebate on any account, except as allowed by law, the full amounts of their wages including overtime, accrued to not more than five working days prior to the time of payment, at wage rates not less than those deemed to be prevailing, regardless of any contractual relationship which may be alleged to exist between the contractor or subcontractor and the laborers and mechanics. The rates of wages to be paid shall be posted by the contractor in a prominent and easily accessible place at the job site[,] and in a conspicuous location accessible to the contractor's or subcontractor's laborers and mechanics for those laborers and mechanics working on the project but not at the job site, and a copy of the rates of wages required to be posted shall be given to each laborer and mechanic employed under the contract by the contractor at the time each laborer and mechanic is employed, except that where there is a collective bargaining agreement the contractor does not have to provide the contractor's employees the wage rate schedules.

(e) The governmental contracting agency may withhold from the contractor so much of the accrued payments as the governmental contracting agency may consider necessary to pay to the laborers and mechanics required to be employed by the contractor or any subcontractor on the job site for the public works project the difference between the prevailing wages and the wages received and not refunded by the laborers and mechanics."

SECTION 3. Section 104-21, Hawaii Revised Statutes, is amended to read as follows:

"104-21 Governmental contracting agency responsibilities. The governmental contracting agency shall:

(1) Pay or cause to be paid, within sixty days of a determination made by the director, directly to laborers [and], mechanics, and their required assistants, helpers, tenders, or apprentices or to the director, from any accrued payment withheld under the terms of the contract, any wages or overtime compensation found to be due to laborers [or], mechanics, and their required assistants, helpers, tenders, or apprentices under the terms of the contract subject to this chapter, or any penalty assessed;

(2) Pay or cause to be paid, within sixty days of a determination made by the director, directly to the director, from any accrued payment withheld under the terms of the contract, any penalty assessed or any wages or overtime compensation found to be due to the required assistants, helpers, tenders, or apprentices of the contractor or any of the contractor's subcontractors when such assistants, helpers, tenders, or apprentices are not provided for under the terms of the contract subject to this chapter;

[(2)] (3) Order any contractor to pay, within sixty days of a determination made by the director, any wages or overtime compensation which the contractor, or any of the contractor's subcontractors, should have paid to any laborer [or], mechanic, and their required assistants, helpers, tenders, or apprentices under any contract subject to this chapter, or any penalty assessed which the contractor, or any of the contractor's subcontractors, should have paid to the director; and

[(3)] (4) Report to the director any violation of this chapter, the rules adopted thereunder, or the terms of the contract subject to this chapter."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2025.