Report Title:

Little Davis Bacon Act; Fringe Benefits; Department of Labor and Industrial Relations



Requires the department of labor and industrial relations to use a standard reporting form to report the fringe benefit rate paid to both union and non-union laborers who perform work for the construction, alteration, or repair of public buildings and public works.



H.B. NO.













relating to labor.





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

"(b) Every laborer and mechanic performing 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 established by the director as the sum of the basic hourly rate and the cost to an employer of providing a laborer or mechanic with fringe benefits. In making prevailing wage determinations, the following shall apply:

(A) The director shall make separate findings of:

(i) The basic hourly rate; and

(ii) The rate of contribution or cost of fringe benefits paid by the employer when the payment of the fringe benefits by the employer constitutes a prevailing practice. The cost of fringe benefits shall be reflected in the wage rate scheduled as an hourly rate;

(B) The rates of wages [which] that the director shall regard as prevailing in each corresponding classification of laborers and mechanics shall be the rate of wages paid to the greatest number of those employed in the State, the modal rate, in the corresponding classes of laborers or mechanics on projects that are similar to the contract work; and

(C) The prevailing cost of fringe benefits shall be determined according to a biannual survey, using a standardized reporting form supplied by the department, of all general contractors and their subcontractors who have been party to a contract subject to this chapter in the six months prior to the date of the survey. The reporting form shall specify costs paid for:

(i) Health and welfare benefits;

(ii) Pension and annuity benefits;

(iii) Vacation benefits;

(iv) Continuing education and training benefits; and

(v) Other fringe benefit costs paid by the general contractor or subcontractor;

(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 projects 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."

SECTION 2. Section 104-3, Hawaii Revised Statutes, is amended to read as follows:

"104-3 Payrolls and payroll records. (a) Every [such] contract subject to this chapter and the specifications for [such contract] those contracts shall contain a provision that a certified copy of all payrolls and a certified copy of a fringe benefit reporting form supplied by the department shall be submitted weekly to the governmental contracting agency for review. The general contractor shall be responsible for the submission of certified copies of the payrolls of all subcontractors. The certification shall affirm that the payrolls are correct and complete, that the wage rates contained therein are not less than the applicable rates contained in the wage determination decision of the director of labor and industrial relations attached to the contract, and that the classifications set forth for each laborer or mechanic conform with the work the laborer or mechanic performed. Any certification discrepancy found by the contracting agency shall be reported to the general contractor and the director to effect compliance.

(b) Payroll records for all laborers and mechanics working at the site of the work shall be maintained by the general contractor and the general contractor's subcontractors, if any, during the course of the work and preserved for a period of three years thereafter. The records shall contain the name of each employee, the employee's correct classification, rate of pay, an itemized list of fringe benefit costs paid for each employee by the general contractor or subcontractor, daily and weekly number of hours worked, deductions made and actual wages paid.

(c) The contractor shall make payroll records available for examination within ten days from the date of a written request by a governmental contracting agency, director, or any authorized representatives thereof. Any contractor who:

(1) Fails to make payroll records accessible within ten days;

(2) Fails to provide information requested for the proper enforcement of this chapter within ten days; or

(3) Fails to keep or falsifies any record required under this chapter,

shall be assessed a penalty as provided in section 104-22(b)."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect July 1, 2009.