The threshold for the payment of prevailing wages on public works projects in Hawaii is $2,000.00. The wage rate determinations are issued on February 15 and September 15 every year. Other addenda or additional wage rates are issued when needed. The wage rate determinations issued are good for the duration of the project. Since wage determination is multi-year, a contract is “on-notice” as wage increases come into effect. The contractor must pay increases as noted on the determination issued by the Director of Labor accordingly.

Compliance Tips:

  • Hawaii requires general engineering, general building and specialty contractors to be licensed. To check if a contractor holds a license in Hawaii, visit Hawaii’s contractor licensing policy for more detailed information.
  • If the contracting agency finds that any laborer or mechanic employed on the job site by the contractor or any subcontractor has not been paid prevailing wages or overtime, the contracting agency may, by written notice to the contractor, terminate the contractor’s or subcontractor’s right to proceed with the work or with the part of the work in which the required wages or overtime compensation have not been paid. If a contractor or subcontractor violates the law, the penalties are: First Violation = 10% of back wages found due or $25 per offense, whichever is greater. Second Violation = amount of back wages found due or $100 for each offense, whichever is greater. Third Violation = two times the amount of back wages found due or $200 for each offense, whichever is greater; and suspension from doing any new work on any public work of a governmental contracting agency for three years.