Honolulu subcontractor pays more than $305K in back wages, damages to 65 workers after US Labor Department investigation

U.S. Department of Labor          February 9, 2015

Wage and Hour Division            Release Number: 14-2339-SAN (SF-9)

HONOLULU — M.H. Electric has paid $290,588 in back wages to 65 workers after the U.S. Department of Labor determined that the Honolulu-based subcontractor violated federal wage and hour laws at 10 federally funded construction projects awarded in Hawaii between 2012 and 2014 by the Hawaii Air National Guard and the U.S. Departments of the Navy, Army and Veterans Affairs. In resolving the department’s allegations, the company also paid an additional $14,507 in back wages and damages for overtime violations under the Fair Labor Standards Act.

The department’s Wage and Hour Division found M.H. Electric violated the Davis-Bacon and Related Acts and Contract Work Hours and Safety Standards Act. The company failed to pay its employees for their overtime hours in a timely manner. Instead, the employer systematically “banked” those overtime hours at straight-time wage rates for future use as vacation or sick time, or to be used when employees worked less than 40 hours. That violated the overtime standards of both the CWHSSA and the FLSA, which require that an employer pay time and one-half for hours worked beyond 40 in a workweek.

“Federal contractors owe it to taxpayers to comply with all applicable laws, including paying their workers fairly and fully,” said Terence Trotter, district director for the Wage and Hour Division in Honolulu. “In this case, we appreciate the cooperation shown by M.H. Electric to help resolve the matter expeditiously and to commit to future compliance with applicable labor standards.”

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