Bill Text: HI SB2961 | 2020 | Regular Session | Amended
Bill Title: Relating To Wages.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2020-03-09 - Referred to LAB, FIN, referral sheet 36 [SB2961 Detail]
Download: Hawaii-2020-SB2961-Amended.html
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THE SENATE |
S.B. NO. |
2961 |
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THIRTIETH LEGISLATURE, 2020 |
S.D. 2 |
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STATE OF HAWAII |
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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 be 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 benefit, fringe benefit, or contribution claims.
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) against a general
contractor; provided that 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 section 175a of
the federal Labor Management Cooperation Act of 1978 (title 29 United States Code
section 175a) 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 party 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 last date
on which the person performed labor for which a claim is made, but no 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 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 redacted 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, 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) 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.
(h) 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.
(i) For purposes of this section:
"General contractor"
means a contractor who has a direct contractual relationship with an owner.
"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."
SECTION 2. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2051.
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. Effective 7/1/51. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
