Farewell Darwin

Darwin Ching's last day as Director of Labor was Tuesday, June 15. While he never formally mentioned it, it is clear that he resigned to run for Honolulu Prosecutor. The general consensus at Wage Standards is that Darwin did a good job as the Director of Labor. Darwin was a sincere person who values people's efforts. During holiday times he would always come around and make a point to thank individuals for their work and wish them a happy, healthy holiday. It seems like a small thing, but it meant a lot to employees who never had interactions with him. While I didn't agree with everything he pursued, I respected how he listened and tried to meet people somewhere in the middle. I think the the Dept. of Labor and Industrial Relations has benefited from his presence.

Allowable Fringe Benefits in the Prevailing Wage Law

Allowable fringe benefits must first be a benefit to employees.

Two questions were asked recently about whether credit could be taken for a fringe benefit under our prevailing wage law, Chapter 104, Hawaii Revised Statutes, for the supply and laundry of uniforms and for the general excise tax paid by contractors. The answer to both is no, these are not allowable fringe benefits that can be credited towards the prevailing wage on public works in Hawaii.

The supply and laundry of uniforms is at the direction of the employer and therefore a cost of doing business. Requiring an employee to wear a uniform is not a benefit to the employee. It is generally unlawful for employers to deduct for the cost and maintenance of a uniform required to be worn at work.

The payment of general excise tax is required by all businesses in Hawaii unless specifically exempt. There is no exemption for construction work. As a required amount to be paid by the employer to the State, the general excise tax is not a benefit to an employee.

Chapter 104 Overview

Yesterday we held the free Chapter 104 Overview workshop for the largest audience yet. Chapter 104, Hawaii Revised Statutes is the Hawaii version of the federal Davis-Bacon Act. Forty-nine people showed up out of 55 signed up. That tells me that interest in compliance and participating in public works is increasing. I remember when we had to beg people to attend just to get 6 attendees a few years ago when we started this. I enjoy teaching the class because I hear first hand what the concerns are with the law. There were several specific questions identified this time that I'll be addressing in future blogs.

2010 Legislative Session is Here

The 2010 Legislative session opened last Wednesday, January 20. The main issue at the DLIR concerns lessening the blow of the Unemployment Tax increase for businesses that is expected this year due to the high unemployment. WSD has spotted some issues introduced by others that may effect the Wage Standards Division, but we'll wait on any comments until the measures are assigned a hearing.