A bill before legislators would give counties the power to adopt labor standards.

Senate Bill 2615 has the backing of some county officials who say they have seen cases of labor law violations in their districts.

Honolulu Council member Tyler Dos Santos-Tam, whose district spans from Kakaako to Kalihi, said in written testimony that there have been allegations of labor abuse there — including complaints about immigrant construction workers on residential properties having their passports withheld or being required to live on job sites during construction of residential properties.

“(Senate Bill 2615) would empower the inspectors who visit construction sites to verify labor standards, such as wages, benefits, and apprenticeship standards,” he said.

Dos Santos-Tam said if counties had the power to adopt labor standards, with enforcement through existing city inspectors, “we would be able to stop these unscrupulous actors more quickly, versus engaging in a multiagency enforcement process, as is the case now.”

Maui Council member Nohelani U‘u-Hodgins also submitted written testimony that SB 2615 is a step forward in protecting the local workforce and ensuring the well-being of individuals and their families.

“It has become increasingly evident that labor violations have a detrimental impact on the livelihoods of our local workforce and the overall success of our communities,” U‘u-Hodgins wrote. “Counties can play an important role in stopping unlawful employers who take advantage of workers by not paying them earned wages and benefits.”

In July 2020, Pacific Resource Partnership — representing the Hawaii Regional Council of Carpenters with 6,000 members — said it initiated an investigation that led to S&A Industries Inc. being fined nearly $700,000 by the U.S. Department of Labor for failing to pay overtime wages to 110 construction workers on Kauai hotel renovation projects.

“S&A had classified some other workers as subcontractors and then paying them out, and the subcontractors would then pay the workers in cash,” Josh Magno, PRP interim executive director, told the Honolulu Star-Advertiser. “In some situations, we heard they’re being paid $10 an hour working 7 days a week.”

In its written testimony supporting SB 2615, PRP said “hard-working men and women in the counties are victimized by an ‘underground economy’ where individuals and businesses utilize schemes to conceal or misrepresent their employee population to avoid one or more of their employer responsibilities related to wages, payroll taxes, insurance, licensing, safety, or other regulatory requirements.”

Chris Delaunay, PRP government relations manager, said the current state law doesn’t give authority for the state Department of Labor and Industrial Relations to necessarily take action, and SB 2615 could authorize the counties to adopt labor standards so it can revoke permits if needed.

PRP also wrote that granting counties the authority to enforce ordinances on wage, benefit, hour, and employment law compliance for building permits would incentivize property owners and developers to choose contractors who adhere to these laws more diligently.

“If you have good jobs here, good work opportunities, then you’re helping to prevent that outmigration of local residents to the mainland,” Delaunay said.