Ohana Control Systems, Inc., a Honolulu company offering fire safety and other security technology, was assessed back wages and penalties for engaging in wage and hour practices violative of Hawaii law.

State contractors are required to pay area prevailing wages on public works projects, including the project Ohana Control Systems, Inc. did on the Dole Middle School fire alarm system.  Despite this requirement, the DLIR cited the contractor for wage and hour violations including:

• Failing to adhere to apprentice-to-jorneyworker ratio requirements by having too many workers underpaid as apprentices;
• Failing to pay at overtime rates when required;
• Failing to increase wage rates according to the Wage Rate Schedule;
• Failing to posting and provide copies of the Wage Rate Schedule, and 
• Failing to maintain accurate records.

The contractor’s recordkeeping deficiencies included certifying that 401(k) retirement contributions were made for certain employees, despite the fact that no contributions were made.  This resulted in a wage and hour violation in the form of claiming the non-existent 401(k) payments as credit toward meeting the required prevailing wage rate. 

As a result of these violations, the DLIR has ordered Ohana Control Systems, Inc. to pay $117,897 in back wages and penalties. The agency has also moved to suspend the contractor from future public works projects as a result of its falsification of records related to the case.  Ohana Control Systems, Inc. has a right to appeal the decision.