Substantial Increases in Effect for DLIR Fines

As of July 1, 2016, penalties for non-compliance with certain labor laws administered by the State of Hawaii Department of Labor and Industrial Relations (DLIR) were increased significantly. Specifically, under Act 192:

  • Penalties for workers’ compensation insurance increased to $100 per employee per day (from $10 per employee per day) or $500, whichever sum is greater.
  • Penalties for a violation by an employer who makes deductions for worker’s compensation from any employee’s wages/salaries increased to not more than $5,000 (from $2,500).
  • Penalties for non-compliance with maintaining temporary disability insurance (TDI) increased to $100 per employee per day (from $1 per employee per day) or $500, whichever sum is greater.
  • Penalties for violations of prevailing wage laws on public construction projects are increased:
    • For a first offense: 25% of the amount of back wages due (from 10%), or $250 per offense (from $25 per offense), up to $2,500, whichever is greater;
    • For a second offense within two years: $500 for each offense (from $100), up to $5,000, or the equivalent of back wages due, whichever is greater; and
    • For a third offense within three years of the second violation: $1,000 for each offense (from $200), up to $10,000, or two times the amount of back wages due, whichever is greater; plus suspension from any new public works project for three years.

Under Act 187, some employers are excluded from having to provide TDI for themselves if they perform services for their own corporations, limited liability company (LLC), limited liability partnership (LLP), partnership, or sole proprietorship.
See the full text of Act 187 and Act 192.