A contractor on the Maile Sky Court hotel renovation project in Waikiki, Hawaii has been fined $767,095 by the state’s Department of Labor and Industrial Relations on the charge of workplace irregularities. Texas-based R&R Construction Services allegedly misclassified 65 construction workers as independent contractors to avoid requirements to provide unemployment, workers compensation, temporary disability, and prepaid health care insurances.
DLIR’s Director Linda Chuc Takayma told the Honolulu State Advertiser,
Law-abiding contractors who pay their fair share face unfair competition and workers suffer when deprived of their rights and benefits. The visitor industry, and a pleasant visitor experience, is important to Hawaii, but Hawaii’s working people and law abiding contractors need to benefit fairly.
The company now has twenty days to appeal the citations as more allegations from DLIR’s Unemployed Insurance and OSHA are expected soon.