On July 12, 2022, Governor Ige signed SB 2298 into law as Act 300, which took immediate effect. The Act increases the penalty for employers who fail to pay the wages of their employees in accordance with HRS §387 (wage and hour), and HRS §388 (payment of wages and other compensation) to a class C felony, which carries a maximum prison sentence of up to 5 years. It also clarifies that the penalties will be assessed per violation.

The Legislature found that state labor laws should vigorously protect workers from employers who fail to pay their employees and noted that wage theft accounts for $15 billion stolen each year, which totals more than all stolen money from physical burglaries in the United States combined. 

In addition to the above penalties, employers remain liable for any unpaid wages to employees (plus liquidated damages for willful violations).

Employers should familiarize themselves with Hawaii's wage and hour laws, including payment of wages, to ensure compliances. HEC members may contact their HR Consultant, or call our hotline at 808-836-1511 with questions.