HRS §104-27
Contractor and surety liability for unpaid wages
If a contractor does not pay workers the wages or overtime they are owed, the contractor and their sureties must pay the unpaid amounts plus an equal amount as liquidated damages. However, sureties only pay liquidated damages after all other creditors are paid first.
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The statute, as written — Liability
If the accrued payments withheld under the terms of the contract are insufficient to reimburse all the laborers and mechanics for wages or overtime compensation due under this chapter, and the contractor has failed to pay the wages or overtime compensation, the contractor and the contractor's sureties shall be liable to the laborers and mechanics in the amount of the unpaid wages and overtime compensation due, and in an additional equal amount as liquidated damages. However, any claim for liquidated damages, insofar as the surety or sureties are concerned, shall not be paid until the claims of all other creditors have been satisfied.
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