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PRP Hawaii
Industry Integrity

Promoting Fairness in Construction

Report fraud

Industry integrity

Protecting Hawaiʻi’s Workforce and Economy

Non-compliance of Hawai‘i’s labor, employment, and construction laws can become widespread problem if they are not addressed proactively. Along with negatively impacting businesses, it burdens taxpayers and weakens our state economy.

PRP takes this issue seriously and is working alongside government officials, developers, construction workers and others to stop non-compliance and enforce regulations. , we bring forth instances of non-compliance and publicly release data revealing the extent of the problem and its costly consequences.

By standing up for fair wages and practices, we protect construction workers, bolster our state’s economy and raise the quality of life in our Islands.

 

 

 

Non-Compliance

The Hidden Consequences of Contractor Fraud

PRP combines a practical approach with deep industry knowledge to support Hawaii’s construction community. We focus on research that delivers actionable insights, advocacy that promotes fair and responsible development, and contractor services that enhance business success.

1

Hard-Working Craftsmen Deserve Fair Treatment

Making a decent living in Hawai‘i is already a challenge. But when workers are employed by contractors who ignore labor laws, fair wages, job security, and workplace safety, it becomes impossible.

Many workers facing non-compliant employers experience:
  • Misclassification as independent contractors – They are forced to pay their own taxes as if they were subcontractors, receive no medical benefits if injured, and are left without unemployment insurance if they lose their job.
  • Unfair wages – They are often paid less than their skills deserve.
  • Unsafe working conditions – They are exposed to hazardous job sites with little oversight.
  • Little to no benefits – Essential protections like healthcare and paid time off are often withheld.

Every worker deserves fair pay, safe conditions, and the security of knowing their rights are protected.
2

Dishonest Contractors Profit at Hawai‘i’s Expense

When contractors cut corners and break the law, they gain an unfair advantage over honest businesses that follow the rules. By illegally lowering costs and boosting their profits, these bad actors not only exploit workers but also weaken the entire industry.

Law-breaking contractors thrive by:
  • Hiring unlicensed subcontractors – Bypassing regulations to reduce costs.
  • Paying workers unfair wages – Often well below a living wage.
  • Exploiting unauthorized immigrant labor – Maximizing savings through illegal employment practices.
  • Misclassifying workers as independent contractors – Avoiding taxes, state and federal unemployment contributions, overtime pay, and workers’ compensation premiums.
  • Ignoring health and safety laws – Putting workers, the public, and the environment at risk.
  • Undercutting honest contractors – Damaging the industry’s reputation and discouraging developers from investing in quality work.

When dishonest contractors win, everyone else loses—workers, businesses, and the communities that depend on a fair and thriving construction industry.
3

Cheating Contractors Drain Public Resources

Hawai‘i’s social safety net is already stretched thin. When dishonest contractors break the rules, they don’t just exploit workers—they put an even greater burden on taxpayers and state resources.

The underground economy created by these bad actors:
  • Reduces tax revenue – Cash payments and off-the-books deals deprive the state of funds needed for essential services.
  • Strains public assistance programs – When workers are denied fair wages, medical benefits, and unemployment coverage, they are forced to rely on state-funded programs, stretching resources meant for those in need.
  • Undermines public projects – Cheating contractors unfairly win government-funded construction bids and often deliver substandard results, wasting taxpayer dollars.

Hawai‘i cannot afford to let dishonest contractors push our resources to the breaking point. Enforcing fair labor practices protects workers, taxpayers, and the integrity of our public infrastructure.
4

When Contractors Cut Corners, Our Communities Pay the Price

When dishonest contractors exploit workers and cut corners, the consequences ripple across our communities, placing both financial and safety burdens on Hawai‘i’s people and environment.

The impact of their actions includes:
  • Increased strain on public resources – Exploited workers still rely on government services without contributing their fair share through taxes and payroll deductions.
  • Unsafe and low-quality construction – Businesses, organizations, and consumers suffer when contractors deliver substandard work, create hazardous structures, and harm the environment.
  • Fewer opportunities for honest contractors – Law-abiding businesses struggle to compete, making it harder to provide stable jobs and quality services.

Protecting our communities means holding cheating contractors accountable—ensuring fair competition, safer projects, and a stronger future for Hawai‘i.
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