At a Glance
Quick Answer
Hawaii has an active prevailing wage law (Hawaii Prevailing Wage Law (HRS Chapter 104)). Administered by Hawaii Department of Labor and Industrial Relations, Wage Standards Division. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Hawaii requires prevailing wages on all state and county construction projects greater than $2,000. Wage rate schedules are issued approximately on February 15 and September 15 each year. Contractors must pay at least the basic hourly rate plus fringe benefits.
Context
Prevailing Wage & Bidding in Hawaii
Hawaii enforces a broad prevailing wage requirement under its Prevailing Wage Law (HRS Chapter 104), administered by the Department of Labor and Industrial Relations, Wage Standards Division. The coverage threshold is among the lowest in the nation: prevailing wages apply to all state and county construction projects greater than $2,000. In practice, that means nearly every public construction contract in Hawaii is covered, so estimators should treat prevailing rates as the default labor basis rather than the exception when bidding state or county work.
A critical estimating detail is that contractors must pay at least the basic hourly rate plus fringe benefits for each classification, not just the base wage. Omitting fringes from your labor buildup understates cost on every covered hour. Hawaii issues updated wage rate schedules approximately on February 15 and September 15 each year, and contractors must adjust wages when new schedules are published during a project. This mid-project escalation is the single biggest pricing pitfall: a bid locked to current rates can lose margin when a new schedule lands before the work is complete, so build escalation into longer schedules.
Certified payroll is required, documenting classifications, hours, base rates, and fringe payments for every worker. On federally funded Hawaii projects, Davis-Bacon applies in parallel, and you must pay the higher of the state or federal determination for each classification. Violations can result in back wages, debarment from public contracts, and civil penalties. Price the correct base-plus-fringe rate by classification, account for the twice-yearly rate updates across your schedule, and include certified payroll administration in your bid so compliance costs are captured before award rather than discovered during the job.
Details
Coverage Details
State Law Details
- Law
- Hawaii Prevailing Wage Law (HRS Chapter 104)
- Agency
- Hawaii Department of Labor and Industrial Relations, Wage Standards Division
- Thresholds
- All state and county construction projects greater than $2,000
- Certified Payroll
- Required
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Hawaii. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
One of the lowest thresholds in the nation at $2,000
Wage rate schedules updated twice per year (February and September)
Covers all state and county construction projects
Fringe benefits must be paid in addition to basic hourly rates
Contractors must adjust wages when new rate schedules are published during a project
Enforcement
Penalties
Contractors who fail to pay prevailing wages may be required to pay back wages, face debarment from public contracts, and be subject to civil penalties.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Hawaii have a prevailing wage law?
Yes. Hawaii has an active state prevailing wage law: Hawaii Prevailing Wage Law (HRS Chapter 104). Hawaii requires prevailing wages on all state and county construction projects greater than $2,000. Wage rate schedules are issued approximately on February 15 and September 15 each year. Contractors must pay at least the basic hourly rate plus fringe benefits.
Does Davis-Bacon apply in Hawaii?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Hawaii, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Hawaii?
Yes. Hawaii requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in Hawaii?
Contractors who fail to pay prevailing wages may be required to pay back wages, face debarment from public contracts, and be subject to civil penalties.
What is Hawaii's prevailing wage threshold?
Hawaii applies prevailing wages to all state and county construction projects greater than $2,000, one of the lowest thresholds in the nation. Because nearly every public construction contract is covered, contractors bidding state or county work should treat prevailing rates as the default labor basis rather than an exception.
How often do Hawaii prevailing wage rates change?
Hawaii issues updated wage rate schedules approximately on February 15 and September 15 each year. Contractors must adjust wages when a new schedule is published during an ongoing project, so bids on longer-duration work should include escalation to avoid losing margin when rates increase mid-project.
Must fringe benefits be paid on Hawaii prevailing wage projects?
Yes. Hawaii requires payment of at least the basic hourly rate plus fringe benefits for each classification. Estimators who price only the base wage understate labor cost on every covered hour, so the full base-plus-fringe rate must be built into the bid and documented through certified payroll.