Following a grievance by the Hawaii State Teachers Association, the state Department of Education will conduct an audit and compensate over 500 teachers for financial losses due to delayed paychecks.

The DOE will provide $400 to educators who missed either their Aug. 20 or Sept. 5 paycheck, and $800 to those who missed both paychecks. These payments are intended to cover late fees, interest payments and the time and effort teachers spent addressing their missed pay.

Last week the HSTA said it filed a grievance with the DOE after learning that hundreds of teachers had missed at least one paycheck at the beginning of the school year.

HSTA Deputy Executive Director Andrea Eshelman told the Honolulu Star-Advertiser on Thursday that it was the first time a situation of this magnitude had occurred.

The average starting teacher salary is approximately $51,000, which means each paycheck amounts to around $2,428, as teachers are paid 24 times a year.

The issue did not affect a specific area or group of teachers; instead, it occurred randomly across the state, affecting educators statewide, according to Eshelman.

In a statement, the HSTA reported that DOE officials attributed the delays to “necessary pre-boarding requirements” and related errors, as well as “email and paper-­intensive activities.”

Statewide, the HSTA reported that 542 teachers were affected by the paycheck delays — a substantial increase from the initial figure of 377 that the DOE provided to the HSTA in late August. Some of these educators were also not paid on Sept. 5.

State schools Superintendent Keith Hayashi stated during Thursday’s Board of Education meeting that the delays were primarily caused by the completion of pre-boarding tasks, such as background checks and license verification, after payroll processing deadlines had passed.

He noted that four teachers who had completed their pre-boarding steps on time still did not receive their paychecks on Aug. 20 or Sept. 5.

HSTA and DOE met earlier this week and reached an agreement to address the harm caused to teachers who did not receive their paychecks on Aug. 20 and Sept. 5.

All affected teachers are expected to receive their paycheck by today, including any back pay owed.

The DOE acknowledged the harm caused by the delays and agreed to compensate teachers who worked full pay periods but did not receive their payments. Typically, teachers should expect to be paid on the 20th if they work from the first working day through the 15th of the month, and on the 5th of the following month if they work from the 16th through the end of the month.

In addition to providing $400 to those who missed either their Aug. 20 or Sept. 5 paycheck and $800 to those who missed both, the DOE has also issued $2,000 placeholder checks to affected educators to offer temporary financial relief while the department resolves the delayed paychecks.

“While we appreciate the $2,000 placeholder checks which were provided to affected educators, there’s no doubt that serious harm was done to many of them who have every right to be compensated in a timely manner,” HSTA President Osa Tui Jr. said in a statement. “Ultimately, this should never happen again and we’re pleased to have language in place which ensures an outside entity will examine the process and make recommendations to address this internal failure.”

Sonya Pinsky, a fourth grade teacher at Voyager Public Charter School, submitted written testimony to the BOE stating that she did not receive her paycheck until Sept. 5, despite having started work in July.

“I was not prepared to go 6 weeks without pay, as most professionals are in Hawai‘i. I struggled to feed myself and was constantly stressed about how I was going to pay bills or rent,” Pinsky wrote.

She explained that the delayed paychecks affected her mental health.

“My first priority are my haumana. However, I cannot do my job effectively, and give the keiki of Hawai‘i all that they deserve, if my most basic needs are not being met. The DOE broke their side of the contract. Had I broken my side, I would have been fired,” she added. “There needs to be consequences and remedies for this unacceptable error.”

Another teacher at Kawananakoa Middle School, Jashua Walker, shared in written testimony that he was charged an overdraft fee due to insufficient funds after a dental procedure when his paycheck did not arrive on time.

This jeopardized his ability to cover essential expenses, including credit card and loan payments. Walker wrote that his credit score dropped by nearly 80 points, “severely impacting my financial stability and future creditworthiness.”

“Moreover, the inability to receive my paycheck on time meant that I could not afford basic necessities, such as a bus pass. Consequently, I was forced to walk 77 miles over eleven days from Kaimuki to upper Nuuanu to get to work. This dangerous, physically exhausting and demoralizing experience was a direct result of the delayed paycheck.”

In response to member requests, the HSTA successfully secured a 60-day extension for teachers to repay the $2,000 placeholder checks issued earlier to those who were not paid on time. Repayments are now due by Nov. 30, and recipients might have the option to pay in installments rather than as a single lump sum, pending a determination of feasibility by the DOE.

The department will also collaborate with the HSTA to develop a Frequently Asked Questions sheet and publish a memo to address inquiries and outline the appropriate steps regarding Employee Union Trust Fund and Island Flex contributions.

Additionally, pending approval from the state Attorney General’s Office, the DOE has committed to offering the same options and remedies to approximately 100 Hawaii public charter school teachers affected by the pay delay.

To thoroughly identify the issues that caused the mishap, DOE agreed to HSTA’s request to hire an independent entity to conduct an internal audit of DOE procedures concerning pre-boarding and paycheck distribution.

Pre-boarding involves completing criminal background checks, submitting valid teaching credentials and generating a personnel action form.

Once the external auditor’s recommendations are provided and necessary actions are identified, the department will create an implementation plan. The superintendent will then implement the required changes to ensure that employees are paid in a timely manner in the future.

“Moving forward, we are taking steps to engage an independent entity to conduct a thorough internal audit of our onboarding and paycheck distribution procedures,” Hayashi said. “The Hawaii State Teachers Association has filed a grievance regarding the delayed paychecks, and we are actively working with them on finalizing a settlement agreement to resolve this matter. We truly understand how crucial timely pay is, and we deeply regret the hardship that this has caused you.”