Hawaii’s Department of Labor and Industrial Relations (DLIR) has recovered almost fifteen thousand dollars in back wages and penalties on a wage complaint brought under the Payment of Wages law. The complaint was made by two surf instructors hired by a Maui business that offers customers ocean-related recreational experiences.

The Payment of Wages law, Chapter 388, Hawaii Revised Statutes, applies to private businesses with employees working in Hawaii. This law requires employers to:

• Notify employees at the time of hiring of the rate of pay, the time and place of payment;
• Notify employees in writing of any changes to payment agreements;
• Pay employees at least twice a month;
• Pay employees within seven days after the end of the pay period; and
• Pay employees full wages due at the time of termination by the company.

The Maui business was cited for failure to comply with all of the foregoing requirements. The DLIR collected $13,360.12, which included twice the amount of unpaid wages and interest due to the surf instructors, plus a penalty of $1,000 to the State general fund.

“The Legislature created a new administrative process for wage law along with a new, minimum $500 penalty to act as a deterrent,” said DLIR acting Director Leonard Hoshijo. The change in the law streamlines the process for implementing existing penalties payable to employees, recovering unpaid wages, and imposing an administrative penalty paid to the State.