Lactation breaks and posting requirements went into effect July 1, 2013

Lactation breaks and posting requirements went into effect July 1, 2013 
(from DLIR's blog, Inside Hawaii's Wage Standards and the DLIR)

     Act 249, Regular Session 2013, was signed into law and become effective on July 1, 2013.  The Act requires employers to provide a private place (other than a bathroom) and the time for mothers in the first year of their child's birth, to express breast milk.   The law also requires employers to post a notice about nursing mother's rights.  The DLIR has provided a suggested poster that can be found on the DLIR website.  

Who's covered?
      This law protects all employees who need to express milk while at work within the first year of their child's birth.  This is a much broader application than a similar law under the Federal Labor Standards Act ("FLSA").  TheFLSA provision applies only to those employees who are not exempt from the overtime law under FLSA.  The FLSA also provides that any State law offering greater protection has priority.  This means Act 249 is the standard in Hawaii for all employers.

All employers?  YES!
     The law does provide an opportunity for employers with less than 20 employees to prove that providing the space and time would impose an undue hardship.  Notice it is the employer who has to show the undue hardship if they choose not to provide the space and time required under the law.  

What kind of space and how much time?
      Act 249 specifies employers need to provide  "reasonable break time" which is not defined.  As well, the place provided must be "shielded from view and free from intrusion."  Employers who are struggling with how to provide this may reach out to proponents of the measure including  Breastfeeding Hawaii who have various suggestions and alternatives to assist employers with compliance.
      
Private right of action and penalties
   The DLIR does not enforce this law, it is enforced by court action, similar to Hawaii's whistleblower law.  Employers who fail to comply with opportunity to express milk law  may be sued in an appropriate court and be subject to a civil fine of $500 a day for violations.  In addition, employers may be liable for damages to the employee or employees who bring the private right of action in court.

What to do if employer and employee can not agree
   The law provides a legal remedy that allows a lawsuit in the appropriate court.  The Hawaii State Bar Association has an information and referral line (808-537-9140) that will provide free referrals to several attorneys that are familiar with this issue that will help you find a resolution.

Mediation may be the answer
     Employees or employers may reach out for assistance in resolving the matter through mediation.  Community mediation centers throughout the State provide professional workplace mediation.  To find out more about how this can help, you can contact a local mediation center near you.  Honolulu, Oahu - Mediation Center of the Pacific(808) 521-6767; Wailuku, Maui - Maui Mediation  (808) 244-5744;  Hilo Hawaii - Ku'ikahi Mediation Center  (808) 935-7844; Kamuela, Hawaii - West Hawaii Mediation Center - (808) 885-5525; Kauai - KEO Mediaton (808) 245-4077 Ext: 229 or 237.

New Plan Review Fees at DPP

Mayor Caldwell signed Bill 15 into Ordinance 13-16, which would increase certain permit fees at the Department of Planning and Permitting. Of particular concern to BIA members, Ord. 13-16 adds a fee of 20% of the value of the permit as a plan review fee, in addition to the building permit fee. BIA’s government relations committee had worked with DPP Director and Deputy Director, and submitted testimony during the entire process, recommending they consider other options. Unfortunately, despite BIA’s efforts, Bill 15 is now law.

View press release here.

Please see testimony here.

If you have any questions, please contact Gladys Marrone at 629-7509 or gqm@biahawaii.org.

Act 105 to Sunset

Act 105 (2011), which temporarily suspended the exemption for the subcontractors' deduction, will sunset on June 30, 2013! Beginning July 1, 2013, contractors will once again be able to deduct subcontractor expense when calculating GE Tax.

However, until then, it is unclear how the current law will be applied. The Department of Taxation is planning to release a Tax Announcement sometime in June regarding the sunset of Act 105. When it is finalized, it will be posted on their website at www.tax.hawaii.gov.

BIA will also work with DoTax to get the information to circulate to our membership as soon as it's posted.

The Hidden Risks and Liabilities to the Owner Builder

By: Karen T. Nakamura, CEO
Building Industry Association of Hawaii

HRS – 444 is the State Law that regulates Contractor Licensing. This law is meant to protect consumers from liability, fraud and workmanship that does not meet building codes and building standards. Contractor’s who are licensed are registered with the State Department of Commerce and Consumer Affairs, (DCCA). The State has their name, address, social security number or FEIN number and the State can find them to get restitution.

The Owner Builder Exemption fosters unlicensed individuals to shift liability on to the Owner without the Owner knowing the consequences. Complaints have been filed with Regulated Industries and Complaints Office (RICO) and in many cases it takes years of investigation to substantiate the cases. The result: Owners cannot get restitution for their losses and are left with a situation that devalues their investment.

Yes, we are all “related” in Hawaii or someone we know works in the construction industry.  Yes, building costs in Hawaii are the highest in the Nation. Is the risk worth taking when the values of our homes exceed $625,000? Is the risk worth it when the new building materials and building systems require specialized training?  Is the risk worth taking when your net worth and lives are impacted?

Steel wall studs and engineered wood floor joist, foam insulation in the walls, and the
 fiberglass insulation in the ceiling prior to drywall installation

Owners, please educate yourself before signing the Owner Builder Building Permit Application. When you sign this permit application, you are the contractor of record and you are liable for the safety of all workers as well as compliance to the environmental (EPA) and (OSHA) regulations. Violations of Federal regulations, (EPA and OSHA) are not excusable and the daily fines and penalties are expensive. The buck stops with you. The Owner Builder Exemption of the Contractor’s Licensing Law allows owners or lessees of property to build or improve residential, farm, industrial, or commercial buildings or structures on property for their own use, or for use by their grandparents, parents, siblings, or children and who do not offer the buildings or structures for sale or lease. When Owners are advised by individuals to sign the Owner Builder permit application, the Owner can hire employees and contract directly with subcontractors to construct the improvements on their property. The Owner then takes on all the responsibilities and the liabilities of a general contractor.

Do not be confused: The Contractor Licensing Law HRS-444, is regulated by the State Regulated Industries Complaints Office (RICO). RICO assists the public and licensees through education and through enforcement of the state’s professional licensing laws.

Building Permits are regulated by the City and County Department of Planning and Permitting, (DPP). A building permit is not required for repairs using similar or same materials for the purpose of maintenance and which are not more than $1,000 in valuation in any 12-month period and do not affect any electrical or plumbing installations.

The Building Industry Association of Hawaii has introduced SB-1077 to improve the ability of RICO to investigate violations of the Owner Builder Exemptions and to offer additional disclosures for Owner Builders when they enter into agreements with licensed subcontractors.

Please call or email your legislator to support SB-1077. For more information contact me at ktn@biahawaii.org

How Does Hawaii’s General Excise Tax Impact Our Construction Costs?

By: Karen T. Nakamura, CEO

Building Industry Association of Hawaii

In 2011, Act 105 became law and disallowed the exemption of Hawaii’s General Excise Tax (“GET”) on subcontractor work by the general contractor. This law is scheduled to sunset on June 30, 2013.

Act 105 causes the GET to be charged multiple times on the same GET already paid. This practice is called tax pyramiding. Since the inception of Hawaii’s GET, pyramiding was cautiously avoided by exempting services that triggers tax on tax situations.

In Hawaii, the number of subcontractor licenses continues to grow with every new product or new way of work, due to a current state law. We have two types of General Contractor licenses, “A” for general engineering contractors, and “B” for general building contractors, and over 168 subcontractor licenses. Each type of license identifies work dedicated to a specific jurisdiction. For example there are different licenses for fencing depending on the type of fence: wood, vinyl, stone, glass, and more. There are different licenses for roofing depending on the type of roof: wood shake, asphalt shingles, hot tar, metal, tile, and more. Each type of license can be subject to multiple taxing of the GET depending on if a subcontractor uses other subcontractors to get the final product to the general contractors.

Example: When a cabinet maker sells to a cabinet installer (1), and the installer sells the same cabinet with installation to a general contractor (2), and the general contractor sells the total job with cabinets and the installation to you, the consumer (3), the State Tax Collector gets the 4.5% GET three times on the same cabinet, which is ultimately passed on to the buyer.

By allowing Act 105 to sunset on June 30, 2013, contractors will be allowed to pay the 4.5% GET at the first level, just once, and not continuously add the tax at each level. Contractors identify the amount the previous subcontractor has paid and deducts that from the amount due on the total sale. This practice lowers the cost of construction to you, the buyer.

The State Tax Collector is in favor of allowing this law to sunset on June 30, 2013.

Representative Sharon Har introduced HB 1194, which allows for the sunset of the subcontractor exemption. The Committee on Consumer Protection & Commerce has scheduled this bill for hearing on Wednesday, February 6, 2:30, in room 325 of the State Capitol.

Representative Sylvia Luke has introduced HB 1360, which would make permanent the suspension of the subcontractor exemption. It has a single-referral to the Finance Committee, of which she is Chair, and no hearing has yet been scheduled.

Please write to your representative to tell them to allow this law to sunset so construction costs can remain affordable in Hawaii.