Bill Text: HI SB1082 | 2020 | Regular Session | Amended
Bill Title: Relating To Wages.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2020-06-22 - Received notice of all Senate conferees being discharged (Sen. Com. No. 535). [SB1082 Detail]
Download: Hawaii-2020-SB1082-Amended.html
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THE SENATE |
S.B. NO. |
1082 |
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THIRTIETH LEGISLATURE, 2019 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO WAGES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 388, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:
"§388- Contractor
liability; unpaid wages. (a) A general contractor entering into or under a
contract in the State for the erection, construction, alteration, or repair of
a building, structure, or other private work not subject to chapter 104 shall
assume and is liable for any debt owed to a claimant for wages incurred by a
subcontractor at any tier acting under, by, or for the general contractor, for
the claimant's performance of labor included in the contract between the
general contractor and the owner. The
general contractor's liability under this section shall extend only to unpaid
wages to the claimant, including any interest owed, but shall not extend to
penalties, liquidated damages, or any wage, benefit, fringe benefit, or
contribution claims that result from or is caused by retainage by the general
contractor.
A general contractor shall not
evade or commit any act that negates the requirements of this section; provided
that this section does not prohibit a general contractor or subcontractor from contracting
with or enforcing any lawful remedies against a subcontractor for the liability
created by the nonpayment of wages by the subcontractor or by a subcontractor
at any tier working under another subcontractor.
(b) Notwithstanding any law to the contrary,
actions to enforce a general contractor's liability for unpaid wages may
include the following:
(1) The director may enforce liability for
unpaid wages established by subsection (a) pursuant to chapter 387, chapter 388,
or a civil action against a general contractor.
The general contractor's liability shall be limited to unpaid wages,
including any interest owed; or
(2) A
joint labor-management cooperation committee established pursuant to 29 United
States Code, section 175a, the federal Labor Management Cooperation Act of 1978,
may bring an action in any court of competent jurisdiction against a general
contractor or subcontractor at any tier for unpaid wages owed to a claimant by
the general contractor or subcontractor for the performance of private work not
subject to chapter 104, including unpaid wages owed by the general contractor,
pursuant to subsection (a). The court
shall award a prevailing plaintiff in such an action reasonable attorney's fees
and costs, including expert witness fees.
As a condition precedent to any such action against a general contractor
to enforce the liability established by subsection (a), the committee shall
provide written notice to the general contractor and subcontractor who employed
the claimant, within ninety days from the date on which the person did or
performed the last labor for which claim is made, but not later than forty-five
days after the date of completion as defined in section 507-43, stating with
substantial accuracy the amount claimed and the name of the party for whom the
labor was done or performed. The written
notice shall be served by registered or certified mailing of the notice to the
general contractor and subcontractor at any place the general contractor or
subcontractor maintains an office or conducts their business, or in any manner
authorized by law to serve such notice.
The written notice shall not limit the liability of the general contractor
or preclude subsequent amendments of an action to encompass additional
claimants employed by the subcontractor.
No
other party may bring an action against a general contractor to enforce the
liability established in this section.
(c) Unless
otherwise provided by law, property of the general contractor may be attached
for the payment of any judgment received after trial and pursuant to this
section.
(d) An
action brought pursuant to this section shall be filed within one year after
actual completion of the work covered by the direct contract between the owner
and general contractor.
(e) This
section does not apply to work performed by an employee of the State or any
political subdivision of the State.
(f) Upon request by a general contractor to a
subcontractor, the subcontractor and any lower tier subcontractors under
contract with the subcontractor shall provide payroll records, which, at a
minimum, shall contain the information set forth in section 387-6 of its
employees who are providing labor on a private work. The payroll records shall be marked or
obliterated only to prevent disclosure of an employee's full social security
number, except that the last four digits of the employee's social security
number shall be provided. Upon request
of a general contractor to a subcontractor, the subcontractor and any lower
tier subcontractors under contract with the subcontractor shall provide the
general contractor with award information that includes the project name, name
and address of the subcontractor, lower-tier subcontractor with whom the
subcontractor is under contract, anticipated start date, duration, and
estimated journeyperson and apprentice hours, and contact information for the
subcontractors on the project. A
subcontractor's failure to comply with this subsection shall not relieve a
general contractor from any of the obligations contained in this section.
(g) For
purposes of this section:
"General contractor"
means a contractor who has a direct contractual relationship with an owner.
"Retainage" means a
percentage of what a general contractor withholds from payment to a
subcontractor until construction of the project has been satisfactorily
completed in all aspects according to contract.
"Subcontractor" means a
contractor who does not have a direct contractual relationship with an
owner. The term includes a contractor
who has a contractual relationship with a general contractor or with another
subcontractor.
(h) The
obligations and remedies in this section shall be in addition to any
obligations and remedies otherwise provided by law, except that nothing in this
section shall be construed to impose liability on a general contractor for
anything other than unpaid wages, including any interest owed.
(i)
Nothing in this section shall alter an owner's obligation to pay a
general contractor, or the general contractor's obligation to pay a
subcontractor, in a timely manner; provided that a general contractor may
withhold all sums owed to a subcontractor if the subcontractor does not provide
the information requested under subsection (f) in a timely manner and until such
time that the information is provided.
(j) The
provisions of this section are severable.
If any provision of this section or its application is held invalid,
that invalidity shall not affect other provisions or applications that can be
given effect without the invalid provision or application."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on March 15, 2094.
Report Title:
Wages; Timely Payment; General Contractors; Subcontractors; Liability
Description:
Makes general contractors entering into or under contracts in the State for work on buildings, structures, or other private works liable for debt incurred by subcontractors for wages due to claimants for performance of labor in the contract between the general contractor and owner. (SB1082 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
