Showing posts with label 104. Show all posts
Showing posts with label 104. Show all posts

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.

Friday, October 31, 2014

What is a Prevailing Wage "Day" in Hawaii?

This is an important question in Hawaii because there is a special overtime law for work on public projects in Chapter 104, Hawaii Revised Statutes (HRS), that is different than the general law of time and half due after 40 hours in a week, in the Wage and Hour Law, Section 387-3, HRS.  Under the Wages and Hours of Employees on Public Works, Section 104-2(c), HRS, overtime is due after eight hours in a day or on Saturday, Sunday or State Holidays.  While this seems straightforward, it may get complicated when laborers and mechanics are employed on public works through the night that cross calendar days.

Employer sets work day and work week.
It is logical to think that a day always starts and ends with the calendar day beginning at 12:00 midnight and ending 24 hours later.  This is generally the answer, but sometimes the work schedules of laborers and mechanics don’t coincide with the traditional work day and measuring a “day” differently is an appropriate way to address this type of schedule. 

When Hawaii law is silent on an issue and a federal version exists, the State will look to that federal law as guidance in interpreting Hawaii law.  The federal Fair Labor Standards Act (FLSA) defines workday and workweek as:

a “workday” is any fixed period of 24 consecutive hours and a “workweek” is any fixed and regularly recurring period of 7 consecutive workdays  29 CFR 516.2 (a)(7)

It is well settled that employers can determine when their work week starts, whether it be from Sunday to Saturday, or Monday  to Sunday , as long as it is 7 consecutive days it is up to the employer.  Likewise the employer sets the work schedule.  A common work schedule could be 8 a.m. to 4:30 p.m. with a half- hour lunch break from Monday to Friday without any overtime.  But what happens when the work schedule bleeds from one calendar day to the next?

Evening Shift work

Sometimes in public works construction the work shift starts at 9 p.m. and ends at 5 a.m.  In essence the employer has created the “workday” for those on the evening shift from 9 p.m  for the next 24 hours.   If the mechanic or laborer works more than 8 hours before the 24 hour day completion,  the hours worked in excess of 8 will be paid overtime rates. 

Saturdays, Sundays and State Holidays
It’s the overtime provision for Saturday, Sunday and State Holidays that interrupts the shift type schedule and reverts overtime calculations to a calendar-focused timeframe.  If a work schedule on a public works project goes from Friday 9 p.m. to Saturday 5 a.m. there is no avoiding 5 hours of overtime for laborers and mechanics for the hours worked on Saturday, regardless of the work schedule or workweek.

Here’s a great chart pulled from WSD archives and updated that explains how it works.
 

Chapter 104, Hawaii Revised Statutes, Wages and Hours of Employee on Public Works Law

Example of straight time and overtime pay on a project when the "work shift" is on a regularly scheduled night work.

Work Schedule
 
Sunday
Monday
Tuesday
Wednesday
( Holiday)
Thursday
Friday
 
8:00 p.m.
to
5:00 a.m.
 
 
 
 
Work ends at 5:00 a.m.
 
 
Work ends at 5 a.m.
 
Work ends at 5:00 a.m.
 
 
Work ends at 5:00 a.m.
 
Work ends at 5:00 a.m.
 
(for purposes of this example only, there is no meal break)
 
 
.
 
From 12:00 a.m. to 4:00 a.m., payment is at straight time.
 
From 4:00 a.m.-8 p.m. payment is at overtime because it’s more than eight hours.
 
From 12:00 a.m. to 4:00 a.m., payment is at straight time.
 
From 4:00 a.m.-8 p.m payment is at overtime because it’s more than eight hours.
 
From 12:00 a.m to 8:00 p.m., payment is at overtime because it’s a holiday.
 
 
From 12:00 a.m. to 4:00 a.m., payment is at straight time.
 
From 4:00 a.m.-8 p.m payment is at overtime because it’s more than eight hours.
 
From 12:00 a.m. to 4:00 a.m., payment is at straight time.
 
From 4:00 a.m.-8 p.m. payment is at overtime because it’s more than eight hours.
 
 
Work begins at 8:00 p.m.
 
 
Work begins  at 8 p.m.
Work begins at 8:00 p.m.
Work begins at 8:00 p.m.
Work begins at 8:00 p.m.
 
 
From 8:00 p.m. to 12 midnight, payment is at overtime because it’s Sunday
From 8:00 p.m. to 12 midnight, payment is at straight time.
 
From 8:00 p.m. to 12 midnight, payment is at straight time
From 8:00 p.m. to 12 midnight, payment is at overtime because it’s a holiday
From 8:00 p.m. to 12 midnight, payment is at straight time
 

 
Common Problems

·         Changing shifts:  An employer could have more than one regular shift.  If one starts at 8 a.m.  and one at 9 p.m.  overtime will likely arise if an employer schedules an employee from one shift to another shift without a day break between the shift assignment change.

·         Using scheduling to avoid overtime: When  an employer uses the calendar day  to avoid overtime and schedules employees for six hours on Tuesday night from 6p.m. to 12a.m. and six hours on Wednesday from 12a.m. to 6 a.m.  for a total 12 hour shift, this would incur a 4 hour overtime, assuming the 12 hours was all work time at a public works job.

·         Split-shift rule: Employees and employers subject  to Chapter 387, Wage and Hour Law, Hawaii Revised Statutes, must comply with the split shift rule as well.  If an employee is assigned to two shifts in one consecutive 24 hour period, both shifts must start and finish within 14 consecutive hours.  For example, if an employee works from 12a.m. to 6 a.m. then starts on the 8 a.m. shift, they must complete the work by 2 p.m.  All work after 10 a.m. would be overtime as the workday started at 12 a.m. and continues for the next 24 hours.

" (f) No employer shall employ any employee in split shifts unless all of the shifts within a period of twenty-four hours fall within a period of fourteen consecutive hours, except in case of extraordinary emergency."  (Section 387-3(f), HRS)

Wednesday, March 24, 2010

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.