Wage law violations

Limiting the penalty provisions for violations of the law
regarding wages and hours of employees on public works.

THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                     A BILL FOR AN ACT



 1      SECTION 1.  Section 104-24, Hawaii Revised Statutes, is
 2 amended by amending subsection (b) to read as follows:
 3      "(b)  Where a second or third violation occurs, whether on
 4 the same contract or another, within two years of the first
 5 violation, the director[,] shall serve a written complaint on the
 6 person or firm involved.  If, after proper notice and opportunity
 7 for hearing, the director finds that the person or firm has
 8 knowingly violated this chapter, the rules adopted thereunder, or
 9 the terms of the contract subject to this chapter, the director
10 shall order the person or firm in violation:
11      (1)  If it be a second violation, to pay a penalty of not
12           more than ten per cent of the contract amount; or
13      (2)  If it be a third violation, to be suspended from
14           entering into new contracts with governmental agencies
15           as prescribed in section 104-25.
16      (3)  For the purpose of subparagraph (1), if the violation
17           was made by a subcontractor, the penalty will be based
18           on the portion of the contract attributable to the
19           subcontractor's work."

Page 2                                                     
                                     S.B. NO.           482

 1      SECTION 2.  Section 104-25, Hawaii Revised Statutes, is
 2 amended by amending subsection (a) to read as follows:
 3      "(a)  The director shall suspend a person or firm from
 4 [doing any work] entering into new contracts on any public work
 5 of a governmental contracting agency for a period of three years
 6 if the person or firm:
 7      (1)  Commits a third violation of this chapter within two
 8           years from the date of the first violation;
 9      (2)  Fails to make the person's or firm's employees whole
10           for wages or overtime pay due under the contract; or
11      (3)  Fails to pay any penalty assessed."
12      SECTION 3.  Statutory material to be repealed is bracketed.
13 New statutory material is underscored.
14      SECTION 4.  This Act shall take effect upon its approval.
16                           INTRODUCED BY:  _______________________