Friday, November 28, 2014

The Level Playing Field of Prevailing Wages

     The Hawaii prevailing wage law for the construction of public works  requires the Director of Labor to set the hourly rates that must be paid to  laborers and mechanics working on the job site.  The law is premised on providing a level playing field for those bidding on jobs that will be paid for or financed with public funds.  By requiring contractors to pay the same rates for the same jobs,  the bid is won by the expertise and efficiency of the contractor and not because their laborers and mechanics on the projects were paid less than another bidder.   
       Classification of the job is based on the prevailing practice in Hawaii.  Whenever there is a question or an issue determining what classification a particular type of job belongs to the Division reaches out to relevant stakeholders to iron out the distinguishing factors.  Recently we had some issues come up regarding Floor layers, Laborers, and Plumbers.  We were able to sort out the details by sitting down with all the relevant parties and create guidance memos.  The memos serve to maintain enforcement continuity from agency to agency and provide information to contractors who are bidding on projects.

     To see the latest memos on Floor Layers and sewer line pipe cleaning and inspection , and others, see the Wage Standards Division website, and look for "Guidelines" or click on "Read More" under the Prevailing Wage photo.