Schatz Commends U.S. Labor Department for Swift Response to Maile Sky Court Worker Violations
HONOLULU – U.S. Senator Brian Schatz (D-Hawai‘i) today commended the U.S. Department of Labor’s (USDOL) Wage and Hour Division for taking quick action to investigate and confirm the numerous employment violations occurring at Maile Sky Court, a 600-room hotel in Waikiki that is being renovated into a Holiday Inn Express.
The USDOL fined R&R Construction Services, the Texas-based contractor doing the $25 million renovation, $371,376 for numerous violations including misclassifying workers as independent contractors rather than employees. Penalties against Maile Sky Court currently total just over $1.1 million.
“The penalties underscore our zero tolerance for employers who knowingly exploit their workers and skirt the law for financial gain,” said Senator Schatz. “It is clear that R&R Construction Services had no regard for the welfare of our residents and our state. Anyone doing business in Hawai‘i must comply with all employment and labor laws to protect workers and our community.”
Following reports of employment violations at Maile Sky Court, Senator Schatz directed his senior staff to work with state and federal regulators and the Hawai‘i Regional Council of Carpenters to determine the extent of the abuses and to encourage appropriate remedial measures.
On September 19, the Hawai‘i State Department of Labor & Industrial Relations’ Disability Compensation Division announced that it had issued penalties totaling $767,095 to R&R Construction Services for failing to provide Prepaid Health Care, Temporary Disability Insurance (TDI) and Workers’ Compensation insurance to its workers. The fine was the largest penalty ever issued by the division.
On September 1, the City Department of Planning and Permitting issued a notice of violation to Clearview Hotel Capital, the owner of the hotel, and R&R Construction Services after finding black mold in some of the rooms undergoing renovation.
The Hawai‘i Regional Council of Carpenters conducted a six-month investigation of Maile Sky Court after learning about worksite and employment irregularities from workers on the renovation project. The investigation examined everything from who the contractors were to how workers were being hired, paid, and treated.
“While we are pleased with today’s announcement of the additional penalties levied against R&R Construction Services, we believe that Clearview Hotel Capital should also take responsibility for the abuses that have been uncovered by federal, state and county agencies. It is time for owners to step up the monitoring of their projects to ensure that hard working men and women, and our community, are not adversely impacted by the conduct of the contractors they hire,” said Kyle Chock, Assistant Executive Secretary-Treasurer of the Hawai‘i Regional Council of Carpenters.
