7 ways to get paid when your employer shuts down

HONOLULU (KHON2) — With more businesses in Hawaiʻi closing over the last the few years, more workers are finding themselves without being paid full compensation.

What do you do if your job disappears, but your paycheck doesn’t show up? Maybe the business closed. Maybe it filed for bankruptcy. Maybe it just won’t pay.

“It’s sad because, you know, because the employees deserve to be paid for their wages,” said Jade Butay, Director of Hawaiʻi Department of Labor and Industrial Relations (DLIR). “Because it kind of puts them in a terrible situation. They need to put food on the table and feed their family. So, we do what we can to protect the workers.”

In Hawaiʻi, there are steps you can take to try and get the money you’re owed.

1. Start with your records

Gather everything you can to prove you worked there and weren’t paid. That includes:

  • Your job offer or contract.
  • Timecards, schedules or work logs.
  • Pay stubs or bank deposit records.
  • Any messages with your boss about wages.
  • The legal name and address of the company.

You can search for company details at the Hawaiʻi Business Express website.

2. File a wage claim with DLIR

The Hawaiʻi DLIR handles unpaid wage claims through its Wage Standards Division.

You need to file a claim as soon as possible. DLIR may investigate and can order your employer to pay what they owe, along with penalties.

DLIR Wage Standards Division contacts:

  • Oʻahu: (808) 586-8777.
  • Hilo: (808) 974-6464.
  • Maui: (808) 243-5322.
  • Kauaʻi: (808) 241-3540.

“The employee is entitled to double, the back wages plus 6% interest,” explained Director Butay.

3. If the company files for bankruptcy

Federal law mandates that employees are “priority creditors” for wages earned in the 180 days before the bankruptcy. The maximum claim allowed in 2025 is $15,150.

Find out if the company filed by searching PACER (Public Access to Court Electronic Records). If it did, fill out a Proof of Claim form and send it to the bankruptcy court trustee. That trustee handles any payments.

4. If the company dissolved but didn’t file for bankruptcy

You can still file a wage claim with DLIR. You can also sue in civil court.

Hawaiʻi Small Claims Court handles cases up to $5,000. For larger amounts, you’ll need to go to circuit court.

In some cases, you may be able to go after the person responsible for payroll.

5. If your employer refuses to pay

If the business still exists but just won’t pay, file a DLIR claim right away. If you want to act faster, file a case in Small Claims Court. Filing is simple and you don’t need a lawyer.

Visit the Hawaiʻi Judiciary website for more on how to file.

6. If your industry is licensed or bonded

Some jobs require companies to have a license or bond. If your job is one of them, like construction or tour services, you may be able to make a claim through that bond.

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Contractors in Hawaiʻi are licensed by the Department of Commerce and Consumer Affairs. You can check with them to see if the business had a surety bond at their website.

7. Call the federal government for help

If your job was covered under the Fair Labor Standards Act, you can contact the U.S. Department of Labor – Wage and Hour Division at (808) 541-1361 or via their website.

Important contacts at a glance

Agency Role Contact
DLIR Wage Standards Division State wage enforcement (808) 586-8777 or click here.
Bankruptcy Court Trustee Handles payments in bankruptcy Click here.
Small Claims Court Civil claims up to $5,000 Click here.
DOL WHD Federal wage enforcement (808) 541-1361 or click here.

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Remember that you do have options. It may take a bit of patience and possibly some perseverance, but there are ways to be compensated.