STAND. COM. REP. NO.  105-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2473

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2473 entitled:

"A BILL FOR AN ACT RELATING TO ENFORCEMENT OF WAGE LAWS,"

begs leave to report as follows:

The purpose of this measure is to amend the penalty calculations for first and second violations of wage and hour laws applicable to government contractors.  Specifically, this measure sets a $1,000 cap on first offense penalties and a ten per cent of contract value cap on second offense penalties.

The Hawaii Regional Council of Carpenters, Pacific Resource Partnership, and Hawaii Construction Alliance testified in support of this measure.  The General Contractors Association of Hawaii testified in opposition to this measure.  The Department of Labor and Industrial Relations and Chamber of Commerce Hawaii provided comments.

     Your Committee has amended this measure by setting the following, to be paid in addition to claims for back wages, as new penalties for violations of wage and hour laws by government contractors:

     (1)  $1,000 for first offenses; and

     (2)  $10,000 for second offenses.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2473, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2473, H.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

MARK M. NAKASHIMA, Chair