Tuesday, January 27, 2015

Informational Briefing Testimony for Wage Standards before the House Labor and Public Employment Committee

Wage Standards Division LBR 152


 OVERVIEW

The Wage Standards Division (“Division”) protects Hawaii’s workers  by administering and enforcing six different labor laws related to wages in the Hawai‘i Revised Statutes (HRS). The laws operate to keep young workers safe in the workplace (Child Labor Law, Chapter 390, HRS); ensure employees are paid their wages due, (Wage and Hour Law, Chapter 387, HRS; Payment of Wages and Other Compensation, Chapter 388, HRS; Wages and Hours of Employees on Public Works, Chapter104, HRS) and provide job protection when family members need care or an employee is fired or discriminated against because of a lie detector test, a workers compensation injury, or taking an on-site drug test. (Hawaii Family Leave Law, Chapter 398, HRS, Employment Practices Law, Part II – Lie Detector Test and Part III – Unlawful Suspension or Discharge.)

SIGNIFICANT EVENTS

·         The general-funded Division remains without a full staff contributing to a backlog of 341 cases that translates to more than a two year back-log of work.
·         A significant shift in the case work in the Division is away from serving a higher number of low income workers to serving more laborers and mechanics working on public works jobs.  The average claim has tripled from $973 to $3,176 per employee, and the number of employees served annually has decreased from 574 to 231 since 2009.
 
·         Two pending appeals, one at the ICA, (BCI Coca Cola Bottling Co. Inc. v DLIR, ICA CAAP 14-1135), by the DLIR from the Circuit Court reversal of DLIR’s finding of a wrongful termination due to a workers compensation injury, and one at the Circuit Court (Pacific Isles Equipment Rental, Inc. v DLIR, 1CC12-1-3053) determining the standard for state of mind on falsification of records under the Chapter 104 law for suspension,  have the potential to change processes in the Division.  We are proceeding status quo until their resolution.
 
SUCCESSES 
 
In the area of Workforce Management, the Division focused on making Hawaii a more compliant arena for wage related issues.

The Compliance Branch resolved 435 complaints including issuing 4 Notice of Violations to contractors on public works projects who had violated the prevailing wage law under Chapter 104, HRS, and ordered 3-year suspensions of 2 contractors for falsification of certified payrolls.  A full list of suspended contractors is available on WSD website. 

The Compliance Branch identified $646,329 back wages found due for 231 workers. Penalties due to the State were $41,170 and penalties due to claimants totaled $44,404. The Hearings Branch disposed of 65 unlawful termination claims and resolved two Chapter 104 appeals.

The Intake and Certification Branch (ICB) took in 587 complaints against employers that were referred to either the Hearings Branch or Compliance Branch.

The ICB also issued 10,298 child labor permits, including 89 variances and addendums required for productions like “Hawaii Five-0”, and other commercial productions that included minors under age 16 working outside the hours permitted by law.  All outreach to the child labor audience of working minors, parents and employers of minors was accomplished via the WSD Facebook page Hawaii Teens at Work.

The Division responded to 9481 inquiries and used the blog Inside Wage Standards Division and DLIR as a resource to supplement education and outreach.


BUDGET
 
The Division has requested funds for several years to restore the lost positions over the years from the initial reduction in force in 2009, combined with retirements of which positions were never replaced.  This has left the Division without a properly structured team, ie office assistants without supervisors, single member branches and offices (Intake and Certification Branch, Hearings Branch, and Technical Services and Support Office), which we have also asked for funds to re-organize.  Finally, the work load in Maui has become increased to a point that justifies an additional Labor Law Enforcement Specialist.  Wage Standards had presented an additional budget request 7 Labor Law Enforcement Specialists and for the re-organization of the Division at a cost of $384,474 and an additional operating budget of $7,200 for a total of 24 positions at annual cost of $1,485,00 for the Division.


Wednesday, January 21, 2015

28th Hawaii Legislative Session Opens!



Senate Chamber Opening ceremonies. (KHON photo)
         January 21, 2015 marks the opening of the 28th Hawaii Legislative Session.  Our office will be monitoring and testifying on bills that impact the laws Wage Standards Division administers and enforces.  Returning Labor and Public Employment Committee chair Representative Mark Nakashima from House District 1 on the Big Island and Senator Gilbert S.C. Keith-Agaran, from Senate District 5 on Maui will be the key leaders for all matters related to labor issues.

Meanwhile, on the north shore of Oahu, Waimea Beach was closed today due to high surf. 

Surfers at Waimea Beach, Oahu (KHON Photo)

Tuesday, January 20, 2015

Free Employment Protections for Pregnant Workers Webinar


Received this in my e-mail and wanted to share with everyone who is interested.  This is from US DOL's Women's Bureau. You can register by clicking here. I'm interested to hear if they mention Hawaii during the webinar.  It will be held 9 a.m. Hawaii Standard Time.

 
The Women's Bureau invites you  to a webinar

Know your Rights: 

Employment Protections for Pregnant Workers


TuesdayJanuary, 27th2:00-3:15 p.m. EST

To register for the webinar, please click here and use password: Welcome!23 

 

Get the teleconference audio by calling:

 888-957-9827

Pass code: 9688432

ABOUT THIS WEBINAR

This webinar is the second in a series hosted by the Women’s Bureau that explores key policy and programs for working women. This installment showcases the Women’s Bureau's work on educating workers about pregnancy protections provided under the law and also highlights recent developments at the state level.
The program will include an introduction by the Director of the Women's Bureau, Latifa Lyles, followed by three speakers. Sarah Crawford from the Equal Employment Opportunity Commission who will discuss the updated enforcement guidance and the EEOC’s stepped up focus on pregnancy protections. Melissa Josephs from the Chicago-based Women Employed will talk about the recent enactment of the Pregnancy Fairness Law in Illinois, the unanimous support it received from the legislature, and what they expect as the law goes in to effect. Dina Bakst from A Better Balance will discuss similar laws in place in Delaware, New York City, and other states and cities.

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MODERATED BY:

Latifa Lyles

Director, Women's Bureau, U.S. Department of Labor

SPEAKERS INCLUDE:

Sarah Crawford

Attorney Advisor, Office of the Chair,  Equal Employment Opportunity Commission 

Melissa Josephs

Director, Equal Opportunity Policy, Women Employed

Dina Bakst

Co-Founder and Co-President, A Better Balance

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For more information on the Women's Bureau and other programs or events in your region, please visit us at WWW.DOL.GOV/WB


This email was sent to pamela.b.martin@hawaii.gov using GovDelivery, on behalf of: United States Department of Labor · 200 Constitution Ave., NW · Washington, DC 20210 · 1-866-4-USA-DOL (1-866-487-2365) Powered by GovDelivery

Friday, January 16, 2015

Budget Hearing for DLIR Today at 10

     Today, at 10:00a.m the DCCA and DLIR are scheduled to give an informational briefing to the joint meeting of the House Finance Committee and the Senate Ways and Means to review the proposed budget.  Everything is status quo, that is, the money and number of positions for Wage Standards Division is the same as last year.  The meeting will be in the Capitol Auditorium.  It is supposed to be televised on Channel 54 of Olelo.

    The Governor has posted the executive budget  on the Governor's webpage.  Click here to see the DLIR Budget.  Wage Standards is just a drop in the bucket of the $12.6 billion dollar budget with just under $1 million for 17 positions, and a $24,000 operating budget going to Wage Standards.  It is good money spent though with 14 hard working folks out there protecting working teens, recovering unpaid wages for employees, and protecting employees when they are wrongfully terminated because they were caring for a sick family member or were out with a workers compensation injury.  With three Labor Law Enforcement Specialist positions in recruitment right now, this will be a rebuilding year for the Wage Standards Division.

Thursday, January 8, 2015

2013 Workers Compensation Data Book Released

 
The Research and Statistics Division has just released the 2013 Workers Compensation Data Book.  It's a cornucopia of facts about workers compensation in Hawaii.  The good news is that reported workers compensation injuries have declined while the work force has increased. Those are stats moving in the right direction.

Monday, January 5, 2015

New Minimum Wage Poster Available on Website

The 4-step increase in Hawaii's minimum wage of Act 82 Session Laws of Hawaii 2014, began January 1, 2015, by increasing the minimum wage to $7.75 per hour.   The new notice that is required to be posted can be found on the Wage Standards webpage (labor.hawaii.gov/wsd).

In addition to the minimum wage increases, the heavily debated tip credit, also increased from 25 cents to 50 cents as well as the trigger to allow the credit.  Previously, employers were allowed to take a 25 cent tip credit if the employee made at least an additional 50 cents an hour above the minimum wage (at least 75 cents per hour in tips).    As of January 1, 2015, employers may take a 50 cent tip credit as long as the employee earns at least $7 more than the minimum wage, or $14.75 an hour including tips.  This means the employee must make at least $7.50 an hour in tips for the employer to take the 50 cent credit and pay a cash wage of $7.25 instead of the statutory $7.75.

(How the $7 figure for tip credit was arrived at is discussed in the April 22, 2014 blog on Minimum Wage Update.)

The Wage Standards Division recognizes that this could be a little confusing and developed a chart to identify the amounts that need to be earned in tips by employees and the amount of cash wages paid by the employer in various situations.  The chart can be found by clicking here.  Note that Exhibit 1 pertains to last calendar year 2014, Exhibit 2 to calendar year 2015, Exhibit 3 to calendar year 2016, etc.

A reminder that employers are required by law to keep payroll records under section 387-6, Hawaii Revised Statutes, section 388-7, Hawaii Revised Statutes, and Hawaii Administrative Rules 12-20-12.   Employers must be able to prove that employees did in fact earn the $7.50 in tips to take the 50 cents tip credit, which makes accurate record keeping a tool that protects the employer.