Report Title:

Wages; Procurement; Electronic Pay Stubs

 

Description:

Clarifies that the state law requiring payment of prevailing wages applies to all laborers, mechanics, required assistants, helpers, tenders, and apprentices required on all public works projects. Authorizes an employer to furnish to an employee an electronic record of an employee's total gross compensation, the amount and purpose of each deduction, total net compensation, date of payment, and pay period covered, in lieu of a printed, typewritten, or handwritten record, upon receipt of written authorization from the employee. (SD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1778

TWENTY-SECOND LEGISLATURE, 2004

H.D. 2

STATE OF HAWAII

(PROPOSED S.D. 1)


 

A BILL FOR AN ACT

 

RELATING TO WAGES.

 

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

SECTION 1. Section 104-2, Hawaii Revised Statutes, is amended by amending subsections (b) through (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 2. 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 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 3. Section 387-6, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Every employer shall furnish each employee at every pay period a legible printed, typewritten, or handwritten notice showing the employee's:

(1) [total] Total hours worked[,];

(2) [overtime] Overtime hours[,];

(3) [straight-time] Straight-time compensation[,];

(4) [overtime] Overtime compensation[,];

(5) [other] Other compensation[,];

(6) [total] Total gross compensation[,];

(7) [amount] Amount and purpose of each deduction[,];

(8) [total] Total net compensation[,];

(9) [date] Date of payment[,]; and

(10) [pay] Pay period covered[.];

provided that in lieu of the printed, typewritten, or handwritten notice required by this subsection and upon receipt of written authorization from the employee, the employer may make available an electronic notice that may be electronically accessed by the employee."

SECTION 4. Section 388-7, Hawaii Revised Statutes, is amended to read as follows:

"388-7 Notification, posting, and records. Every employer shall:

(1) Notify the employer's employees in writing, at the time of hiring of the rate of pay, and of the day, hour, and place of payment;

(2) Notify the employer's employees in writing or through a posted notice maintained in a place accessible to the employer's employees of any changes in the arrangements specified above prior to the time of such changes;

(3) Make available to the employer's employees in writing or through a posted notice maintained in a place accessible to the employer's employees policies with regard to vacation and sick leave;

(4) Furnish each employee at every payday a legible printed, typewritten, or handwritten record showing the employee's total gross compensation, the amount and purpose of each deduction, total net compensation, date of payment, and pay period covered; and maintain and preserve a copy of such record or its equivalent for a period of at least six years; provided that in lieu of the printed, typewritten, or handwritten record required by this paragraph and upon receipt of written authorization from the employee, the employer may make available an electronic record that may be electronically accessed by the employee;

(5) Keep posted in a place accessible to the employer's employees such notices pertaining to the application of this chapter as shall be prescribed by the director of labor and industrial relations; and

(6) Make and keep records of all employees which shall include basic employment and earnings records; and preserve such records for a period of time and in a manner as the director shall prescribe by rule."

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.