A Houston contractor working on a Waikiki hotel renovation project was ordered by the federal government to pay workers in back wages and damages for overtime violations.
Investigators from the U.S. Department of Labor’s Wage and Hour Division found R&R Construction violated overtime provisions of the Fair Labor Standards Act. Specifically, this employer misclassified its workers as independent contractors rather than employees. This practice resulted in overtime violations when R&R paid these workers fixed rates per day, without regard to how many hours they worked, and they worked more than 40 hours in a week.
Workers on the Maile Sky Court Hotel project typically worked 10-hour days, 6 or 7 days per week.
R&R Construction ended up paying 95 workers — including painters, carpenters, plumbers, laborers and cleaners — $185,688 in unpaid overtime and an equal amount in damages, for a total of $371,376. The department also assessed a civil money penalty of $68,680 against the employer for the willfully violating the overtime provision.
The Hawaii Department of Labor and Industrial Relations had earlier fined R&R Construction $767,000 recently for misclassifying construction employees as independent contractors.
Headquartered in Houston, R&R Construction was hired by Selby Construction as a subcontractor to renovate the Waikiki hotel to reopen it as a Holiday Inn Express.