Survey, Governor, and Paychecks

Governor Abercrombie visits the DLIR - Wage Standards Division (WSD).
 Photographed here with some of the WSD crew in Room 340, 830 Punchbowl St., Honolulu.
 

    So what does a survey, Governor Abercrombie and paychecks have in common?  These are all important events that happened in the Wage Standards Division last week.

Invitation to Participate in Prevailing Wage Surveys Sent Out by Snail Mail
       If you are a chlorinator, concrete mixer driver/booster driver, drapery installer, termite treater,  or water well driller, and work on public projects, you recently received an invitation to participate in an online survey from the Research and Statistics Office, our partners in the administration of the Wages and Hours of Employees on Public Works, Chapter 104, Hawaii Revised Statutes.  The five named classifications are the only classifications of work the Department independently surveys.  If you believe you should be included in the survey you must contact the Research & Statistics Office at (808) 586-9019 or by e-mail at dlir.rs.wrs@hawaii.gov as soon as possible because the survey ends August 2, 2013.
      The rest of the classifications of labors and mechanics listed in the wage rate schedules for public works jobs are dictated by the current prevailing trade union in that classification.  The determination that a particular trade union prevails was made by a federal survey some time ago.  Our partners in research and statistics have a good relationship with our federal counterparts because when we review the identified wage rates sometimes we find a discrepancy.  Because our law says the State rates can not be lower than the federal rates (see Section 104-2(b)(2), HRS), there will be a discussion on what amounts are allowable under the law to resolve our differences.
      The survey of the remaining five groups is an important survey to be able to determine accurate prevailing rates in those classifications.  If you're not participating and you work in those arenas you are depriving the industry of an accurate reflection of today's wage rates.

Governor visits WSD
     A week ago, Governor Abercrombie visited the Department of Labor and Industrial Relations on Oahu in Honolulu.  Wage Standards Division (WSD) was one stop on the tour.  We have fourteen employees working at WSD on Oahu right now and because the visit was during the summer and some were on vacation,  and the timing coincided with the lunch period, only half of the employees were available for the photo above.
     The Governor thanked everyone for participating in the economic program to get the State back on its feet.  He was referring to the pay cut everyone in our office experienced for the last 3 years as 100% general funded divsion.  While he was hesitant at the WSD meeting to commit to any specific funding issues, we had a chance to share with him the hole the Division is in that was created by the current back log of cases and the loss of unreplaced personnel over the years. We just hope he takes to heart the info shared on the charts and graphs and understands how having to make certain choices hurts both employees and employers in different ways and makes our effectiveness weaker, despite being able to celebrate some successes this year.

Paychecks returned to 2008 levels
     Last Friday, the State issued paychecks that restored 2008 compensation rates to employees who are "lagged" five days, that is those who were hired in the last century.   The 5% pay cut experienced in the last few years was restored for those general-funded employees.  Employees hired in this century will have to wait until August 5 to see their paychecks return to 2008 levels.  The State and counties are excluded from from the laws enforced by Wage Standards that require payment of wages within 7 days of the end of the pay period. (see 388-(2)(b), HRS)
      The good news is that units 3 and 4, of which we have 4 employees, will also see a little extra, as those who were due a step increase during that time will get it.  Unfortunately, the issue is not resolved because most of the WSD employees are Unit 13 and they will only see a restoration to the 2008 levels until there is some agreement in their negotiations.  We continue to be hopeful.
     So while sequestration is looming big in many jurisdictions we hope that on the see-saw of financial distribution of federal and state funding issues at the DLIR, it is our turn to be on the high side.  With unemployment at 4.6%, the lowest since September 2008, the outlook is encouraging.

Update on WSD 2013-01 regarding certain truck drivers in the asphalt paving Industry

    Last week I pointed to Memorandum WSD 2013-01, that explained our interpretation of certain truck drivers that were part of the asphalt paving industry.  As mentioned in the July 3 blog, the memo caused an immediate buzz and was the subject of many telephone conversations and meetings.  Several appeals have been filed concerning the memo so the Department has decided to suspend the implementation of the memo and has issued a notice to that end.   This will give the Wage Standards Division an opportunity to update Title 12 Chapter 22 of the Hawaii Administrative Rules to allow for a more public hearing to clarify this issue.  Updating the rules is a project that has been on the Wage Standards Division plate for a while and now is the perfect opportunity.  We'll keep you posted. 

New Links on the Website

Pay Statements     
      It's been a while since the last post and everyone in Wage Standards has been working hard to put some of the legislation that has passed this session into manageable ways to understand it.  Act 70, Relating to Wages  requires employers to provide additional information on the pay statements issued to employees. 

        Although the effective date of this law is not until January 1, 2014, we understand that many employers like to plan ahead.  While the law does not require a specific form, in articulating our interpretation it was just easier to provide a sample to explain what is required rather than repeating the narrative of the law.  The link to the information about Act 70 along with a sample pay statement can be found on our website under "Guidelines" under "Wage Laws".  There is a link to it here.

Truck Drivers on Asphalt Paving Public Works    [Note: July 10 notice suspended implementation]
      A second item we've been working on is a guideline issued to contracting agencies and contractors about the treatment of truck drivers when the spreader box or paving machine method is used for asphalt paving construction public works.  This issue has generated several questions about whether or not this type of work is included work to be reported on the certified payrolls required in construction of public works.  WSD 2013-01 will provide consistency and continuity to the enforcement of the law.

    This guideline was just posted yesterday around lunch time and we have already received several phone calls inquiring about it.  This only serves to reinforce that it is a subject that needed clarity. The link to this guideline can be found on our webpage under "Guidelines" under "Chapter 104" or you can access it by clicking here.


Other links we are still working on.
     Further developments on measures signed on July 1, 2013 by Governor Abercrombie will be forthcoming and they include:
     Senate Bill 535, CD1 (Act ____, Session Laws of Hawaii, relating to Labor, extending minimum wage and overtime protection to domestic service workers, effective July 1, 2013.
     House Bill 1068 CD1 (Act ____, Session Laws of Hawaii ), is aimed at assisting human trafficking victims, effective January 1, 2014.
     Finally Senate Bill 532, CD1 (Act ____, Session Laws of Hawaii) provides breast-feeding mothers in the workplace the time and place they need.  While this is a provision the Department will not enforce, having worked with the community on the legislation we will collaborate in developing suggested notices for employers that would meet the standard in the law.  This law was effective July 1, 2013.