Bill Text: HI SB292 | 2019 | Regular Session | Amended
Bill Title: Relating To Labor.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-07-09 - Act 219, 07/02/2019 (Gov. Msg. No. 1321). [SB292 Detail]
Download: Hawaii-2019-SB292-Amended.html
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THE SENATE |
S.B. NO. |
292 |
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THIRTIETH LEGISLATURE, 2019 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO LABOR.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the Hawaii supreme
court's decision in Konno v. County of Hawaii, 85 Haw. 61 (1997),
affirmed that civil service jobs cannot be performed by private contractors if
the work involved has been customarily and historically provided by civil
servants.
The legislature further finds that service employees of contractors under state or county contracts require greater wage protection than is currently afforded. Unlike chapter 104, Hawaii Revised Statutes, which covers public works construction, section 103-55, Hawaii Revised Statutes, does not provide sufficient provisions to ensure compliance.
The purpose of this Act is to ensure that service employees of state or county contractors are paid at wages or salaries that are certified to be accurate and in accordance with applicable labor laws under chapter 104, Hawaii Revised Statutes, so as to be consistent with the Hawaii supreme court's decision in Konno.
SECTION 2. Section 103-55, Hawaii Revised Statutes, is amended to read as follows:
"§103-55 Wages, hours, and working conditions of employees of contractors performing services. (a) Before any offeror enters into a contract to perform services in excess of $25,000 for any governmental agency, the offeror shall certify that the services to be performed will be performed under the following conditions:
Wages. The services to be rendered shall be performed by employees paid at wages or salaries not less than the wages paid to public officers and employees for similar work.
The contractor or the
contractor's subcontractor shall pay all mechanics and laborers 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, regardless of any contractual relationship which
may be alleged to exist between the contractor or subcontractor and the
laborers and mechanics. A copy of the rates
of wages 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 rates schedules.
Compliance with labor laws. All applicable laws of the federal and state governments relating to workers' compensation, unemployment compensation, payment of wages, and safety will be fully complied with.
(b) The government contracting agency may
withhold from the contractor so much of the accrued payments as the government
contracting agency may consider necessary to pay to the laborers and mechanics
employed by the contractor or any subcontractor on the job site the difference
between the required wages and the wages received and not refunded by the
laborers and mechanics.
(c) Every such contract and the specifications
for such contract shall contain a provision that a certified copy of all
payrolls shall be submitted weekly to the governmental contracting agency for
review. The 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, 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 contractor
and the director to effect compliance.
Payroll records for all laborers and mechanics working at the site of the work shall be maintained by the contractor and the 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, daily and weekly number of hours worked, deductions made, and actual wages paid. 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).
The administration and
enforcement of the requirement for certified payroll records shall be in the
same manner as sections 104-4, 104-21 through 104-28, and 104-33 in relation to
service contracts.
[(b)] (d) No contract to perform services for any governmental
contracting agency in excess of $25,000 shall be granted unless all the
conditions of this section are met.
Failure to comply with the conditions of this section during the period
of contract to perform services shall result in cancellation of the contract,
unless such noncompliance is corrected within a reasonable period as determined
by the procurement officer. Final
payment of a contract or release of bonds or both shall not be made unless the
procurement officer has determined that the noncompliance has been corrected.
It shall be the duty of the governmental contracting agency awarding the contract to perform services in excess of $25,000 to enforce this section.
[(c)] (e) This section shall apply to all contracts to
perform services in excess of $25,000, including contracts to supply ambulance
service and janitorial service.
This section shall not apply to:
(1) Managerial, supervisory, or clerical personnel;
(2) Contracts for supplies, materials, or printing;
(3) Contracts for utility services;
(4) Contracts to perform personal services under section 46-33(7), (8), and (9), section 76-16(b)(2), (3), (12), and (15), and section 76-77(7), (8), and (12);
(5) Contracts for professional services;
(6) Contracts to operate refreshment concessions in public parks, or to provide food services to educational institutions;
(7) Contracts to provide transportation services for school children; or
(8) Contracts with nonprofit institutions."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 1, 2051.
Report Title:
Wages; Labor; Contractors; Payroll
Description:
Specifies the obligations and conditions of contractors performing services in excess of $25,000 for any governmental agency. Authorizes a governmental agency to withhold portions of payments for certain reasons. Requires the submission of certified copies of payrolls. Specifies the obligations in connection with payrolls and penalties for failing to comply. (SB292 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
