Hawaii company to pay $1.5M to security guards after denying overtime wages

Three former high-ranking city officials surrendered to the FBI Wednesday as part of the ongoing Kealoha public corruption probe.
Published: Jan. 12, 2022 at 9:07 PM HST|Updated: Jan. 12, 2022 at 9:12 PM HST
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HONOLULU (HawaiiNewsNow) - An Oahu company that provides security guards to public and private facilities will have to pay over $1.5 million in back wages after a federal investigation determined it illegally denied workers overtime pay.

Investigators with the U.S. Department of Labor said Alii Security Systems Inc. established a “voluntary program” that offered guards more work hours if they waived their right to overtime and accepted straight-time pay for all hours worked.

Officials said 171 security officers were schemed by the company and will each receive a portion of the $1.5 million.

The department said the company intentionally violated the Fair Labor Standards Act’s overtime laws, which requires that most employees be paid overtime pay when they work more than 40 hours in a work week.

DOL identified nearly $740,000 in back wages and an equal amount in liquidated damaged owed to the workers. It also assessed $60,000 in civil money penalties for the violations.

Alii Security Systems Inc. has provided security services in Hawaii since 2003, staffing guards at the state’s National Guard, the Hawaii State Arts Museum, Foster Botanical Gardens and other facilities.

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