The U.S. Department of Labor (DOL) recovered over $33K in back wages and liquidated damages for 14 workers of an Oahu tour operator.

In addition to not paying workers time and one-half pay for all hours over 40 hours in a work week, the employer reported some of the wages as “bonus” payments in its payroll records. The investigators also found that the employer failed to include incentive bonuses or commissions in the overtime pay calculations. The DOL also assessed the employer $2,618 in penalties due to the willful nature of the violations.

Wage and Hour Division District Director Terence Trotter pointed out, “With Honolulu’s low unemployment rate, employers who fail to meet their legal obligations to their workers are competing with employers who pay workers their rightful wages.”

Many employers are struggling to attract and retain workers, with many offering starting pay rates well above Hawaii’s current minimum wage of $10.10 per hour. Nationally, Bank of America recently announced it will raise its minimum hourly wage to $22 per hour by the end of June 2022, with further plans to pay $25 per hour by 2025.

While these employers engage in a bidding war for talent, others are looking to cut costs to stay in business. Regardless of an employer’s financial situation, all employers must comply with state and federal wage and hour laws including minimum wage and overtime requirements.

“In addition to the costly consequences of back wages and damages, employers whose pay practices violate the law will find it difficult to fill vacancies with the people needed to do the work that makes their company successful,” Trotter warns.

Employers may call the Wage and Hour Division confidentially with questions at 866-4US-WAGE (866-487-9243). Members may access our library of wage and hour resources, contact their HR Consultant, or call our hotline at 808-586-1511.