Tax Day is also tax fraud awareness day

Pacific Resource Partnership and the Hawai‘i Regional Council of Carpenters is reminding workers on Tax Day, especially those in the construction industry, that it’s never okay for companies to pay employees under the table, deny them overtime pay and health benefits, or misclassify them as independent contractors.

“Unfortunately, these illicit activities by some unscrupulous companies are far too common and have lasting impacts on workers who may be unaware of their rights,” according to a joint news release. “This type of tax fraud also has a financial impact to the state of Hawai‘i and the four counties, which depend on tax revenue to fund the programs and services island residents depend on.”

“The Department of Taxation is responsible for administering and collecting the tax revenues that basically fund state government,” said Hawai‘i Department of Taxation Dir. Gary Suganuma. “So, the tax revenues fund all of the various state departments and agencies, as well as all of the very important programs and services that they provide that benefit everyone in this state.”

To help raise awareness about the abuse of workers’ rights and the issues related to tax fraud, PRP and HRCC have relaunched the website PlayFairInHawaii.com as a resource for anyone who believes they may have fallen victim to such criminal behavior. Meanwhile, Mayor Rick Blangiardi has proclaimed April 15 as Tax Fraud Awareness Day in the City and County of Honolulu.      

“The construction industry is rife with examples of companies cutting corners in the name of profits and unfortunately it’s the workers who suffer the most,” said PRP Interim Executive Director Josh Magno. “Just last year a Georgia-based contractor was fined nearly $700,000 by the US Department of Labor for failing to pay overtime wages to 110 construction workers from 12 states. A good number of those workers were employed on several hotel renovation projects on Kaua‘i between 2019 and 2022. This kind of behavior needs to stop, and we hope the website PlayFairInHawaii.com helps inform workers about their rights.”

“Our investigation found a blatant and prolonged effort by S&A Industries and their subcontractors to deprive 110 construction workers of their hard-earned overtime wages,” Terrence Trotter, Wage and Hour Division district director said in a US Department of Labor press release issued in September.

“Members of the carpenters union are guaranteed overtime pay, a robust benefits package and safe working conditions thanks to the more than 250 general contractors across Hawai‘i who are signatories to our collective bargaining agreement,” said Ron Taketa, executive secretary treasurer of the Hawai‘i Regional Council of Carpenters. “However, there are some contractors who don’t play by the rules and they not only cheat construction workers of the wages they are rightly due, but also the state and counties in the form of lost taxes.”