State Reviews Compliance with Laws at Construction Sites at the Ewa Wing of the Ala Moana CenterPosted on Nov 4, 2015 in News
DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS
DAVID Y. IGE
LINDA CHU TAKAYAMA
FOR IMMEDIATE RELEASE
October 26, 2015
STATE REVIEWS COMPLIANCE WITH LAWS AT CONSTRUCTION SITES
AT THE EWA WING OF THE ALA MOANA CENTER
Compliance and Consultation Focused on Labor and Tax Laws
HONOLULU — The Hawaii State Department of Labor & Industrial Relations (DLIR) today announced that DLIR investigators undertook a regulatory action at Ala Moana Center. Personnel from the Department of Taxation (DoTAX) also conducted educational outreach to inform contractors of their responsibilities, and offer assistance should there be any questions about tax laws.
“While the new shops at Ala Moana may have glamor appeal, let’s not overlook Hawaii’s workers and contractors who build them,” said Linda Chu Takayama, DLIR Director. “Working people and local contractors need to benefit fairly from the luxury development going on around us.”
The misclassifying of construction employees as independent contractors, or simply paying them in cash “off-the-books,” could affect Hawaii’s hard-working contractors, workers, and State funds. Misclassification and cash payments avoid payments for Unemployment Insurance, Workers Compensation, Temporary Disability Insurance and Prepaid Health Care. State and Federal taxes are often also not paid along with neglecting to obtain licenses to operate legally in Hawaii.
“Law-abiding contractors who pay their fair share face unfair competition and everyone pays more to make up for lost tax revenue, while employees suffer when their rights and benefits are reduced, for example, when they have no credited employment for benefits like unemployment insurance,” stated Director Chu Takayama.
While the DLIR and DoTAX actively seek to enforce the law, they also provide educational resources and consultation. In the construction industry, this may assist contractors in covering their legal obligations as they prepare future bids, including ones for State and County jobs.
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