A construction company working on a renovation project in Waikiki is facing hundreds of thousands of dollars in fines.
The state Department of Labor says R&R Construction violated labor laws in the renovation of the Maile Sky Hotel.
The company allegedly misclassified 65 workers as independent contractors — but after an investigation, the state says those workers should’ve been classified as employees.
Investigators say the company did not provide workers with prepaid health care, temporary disability insurance or workers’ compensation as required by law.
So far, those fines total more than $767,000.
“There are other investigations that are continuing on, so there may be additional citations coming from other sectors,” said Linda Chu Takayama of the Dept. of Labor and Industrial Relations.
The federal Department of Labor is also looking into whether the employees were paid proper wages for their work and any eligible overtime.
A new law just went into effect that increased the fines for these types of labor violations. Up until June 30, the fine was $1 per employee per day. Since the new law went into effect on July 1, the fine is now $100 per person per day.
We’re told the contractor has been on Oahu since April. They have 20 days to appeal the citations and fines.
We did reach out to R&R Construction for a comment, but so far there’s been no response.