Clarifies when the director of DLIR shall commence proceedings for penalties for violations of the law relating to payment of wages and other compensation. Imposes a fine of not less than $500 for violations and not less than $1000 for wilful or repeat violations.

A BILL FOR AN ACT

SECTION 1. Section 388-9, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) The director of labor and industrial relations shall enforce and administer this chapter and the director or the director's authorized representatives may hold hearings and otherwise investigate charges of violations of this chapter [and]. If evidence of a violation is found, the director shall institute actions for penalties hereunder."

2. By amending subsection (c) to read:

"(c) If any judgment obtained by the director against an employer for nonpayment of wages remains unsatisfied for a period of thirty days after the time to appeal therefrom has expired and no appeal is pending or after such judgment has been finally affirmed on appeal, the director [may] shall institute proceedings in the name of the State in the circuit court in which the employer has the employer's principal place of business to compel the employer to cease doing any business until the judgment has been satisfied."

SECTION 2. Section 388-10, Hawaii Revised Statutes, is amended to read as follows:

"§388-10 Penalties. (a) Civil. Any employer who fails to pay wages in accordance with this chapter without equitable justification shall be liable to the employee, in addition to the wages legally proven to be due, for a sum equal to the amount of unpaid wages and interest at a rate of six per cent per year from the date that the wages were due.

(b) Criminal. Any employer who does not pay the wages of any of the employer's employees in accordance with this chapter, or any officer of any corporation who knowingly permits the corporation to violate this chapter by failing to pay wages of any of its employees in accordance with this chapter, or any employer or the employer's agent or any officer or agent of a corporation who discharges or in any other manner discriminates against any employee because the employee has made a complaint to the employee's employer, or to the director, or to any other person that the employee has not been paid wages in accordance with this chapter, or has instituted or caused to be instituted any proceeding under or related to this chapter, or has testified or is about to testify in any such proceedings, or any employer who wilfully fails to comply with any other requirements of this chapter shall be fined not less than $100 nor more than $10,000 or imprisoned for not more than one year, or punished by both fine and imprisonment for each such offense.

(c) Any employer who fails to pay wages, in violation of this chapter, without equitable justification shall be subject to a fine of not less than $500, or not less than $1000 in the case of a wilful or repeat violation. Each violation shall constitute a separate offense. Fines collected by the director shall be paid into the general fund."

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

SECTION 4. This Act shall take effect upon its approval.