Employment and labor laws in Hawaii [Updated 2024]

Employment laws are a necessity—they protect employees from unsafe working conditions and provide a set of guidelines to govern the employer-employee relationship. There are serious consequences for employers who violate these regulations, including hefty fines and even jail time. US employers must adhere to both federal laws, like the Fair Labor Standards Act, and state laws. It can be a lot to keep track of, and to make matters more challenging, the laws are constantly changing.

Hawaii has emerged as a progressive, worker-friendly state that offers workers broad protection regarding discrimination and wages. If you’re hiring in the Aloha State, you need to make sure you’re aware of all applicable state laws to remain compliant.

Scale your business quickly and take the guesswork out of complying with Hawaii’s strict regulations by letting Rippling’s Professional Employer Organization service handle your tax registration and management.

Employment vs. labor law: What’s the difference?

It’s a common misconception that employment law and labor law are the same thing. These terms are often used interchangeably, so it may surprise you to learn that they’re actually two legally distinct concepts. Employment law refers to matters that concern the relationship between an employer and an employee, while labor law (which is a subset of employment law) refers to matters between an employer and a labor union.

Here’s a closer look at what employment and labor laws each encompass:

• Employment law topics include wages, work hours, overtime pay, workplace discrimination, and hiring practices. 
• Labor law topics include collective bargaining agreements, union membership, and union dues. 

Wages and hours in Hawaii

When it comes to paying Hawaiian employees, employers must adhere to the regulations set forth by the FLSA and the Hawaii Department of Labor and Industrial Relations (DLIR), the latter of which is in the process of increasing the minimum wage. Additionally, the state of Hawaii has adopted the pay transparency laws other progressive states are putting into effect; they now require employers to disclose compensation information in job postings.

Minimum wage in Hawaii

The DLIR Wage Standards Division is in the process of changing the state minimum wage laws. The rate has been going up regularly since 2018. Effective January 1, 2024, the minimum wage is $14.00 per hour. Two more wage hikes are planned, one in 2026 and the final one in 2028 when the minimum wage will reach $18.00 per hour.

Rippling automatically flags minimum wage violations based on the state regulations where employees are located—which comes in handy when you’re hiring in a state like Hawaii, where changes to minimum wage rates are scheduled in the coming years.

Overtime pay in Hawaii

When employees need to work longer than their regular hours, Hawaii requires employers to give them overtime pay. The overtime laws in Hawaii follow the guidelines set forth by the Federal Labor Standards Act (FLSA). According to the FLSA, anything over 40 hours a week is considered overtime, and employees are entitled to 1.5x their regular rate of pay for additional hours.

Ensure you adhere to overtime rules in Hawaii with Rippling’s payroll software. It automatically applies the correct pay rates when an employee’s hours trigger overtime pay requirements.

Pay transparency in Hawaii

Across the US, state legislatures have been increasingly passing pay transparency laws in recent years to prevent wage disparities based on race, gender, and age. Effective January 1, 2024, Hawaii joined the growing ranks of states—including California and New York—that have pay transparency laws.

When the Hawaii law goes into effect, all employers with 50 or more employees will be required to disclose the salary range or hourly rate candidates should expect from a position on job postings. Employers who don’t comply will face penalties and fines.

Rippling enforces compensation bands during onboarding and flags out-of-band adjustments, so you can approve special cases and block others as needed.

Breaks and rest periods in Hawaii

According to the Wage Standards Division of the state of Hawaii, private employers aren’t required to provide employees with paid or unpaid rest or meal periods. The only exception to this rule comes from the Hawaii Child Labor Law, which mandates that minors who are 14 or 15 years of age get a 30-minute meal break or rest period after they’ve worked for five consecutive hours.

Leaves of absence in Hawaii

Sometimes, serious situations crop up when you least expect them. An employee might become ill and need time to recover, or perhaps their family member requires care. In some cases, they may be navigating a medical condition. 

At times like these, an employee might require a leave of absence, and they shouldn’t have to worry about losing their job while they’re gone. The US government gives employees the right to take unpaid, job-protected leave through the federal Family and Medical Leave Act (FMLA), which provides 12 weeks of unpaid leave during every 12-month period.

The Hawaii Department of Human Resources and Development (DHRD) provides additional leave for qualifying state employees. Under the Hawaii Family Leave Law, eligible employees can take up to four weeks of unpaid leave each calendar year for the following reasons:

• Birth or adoption of a child
• To care for a spouse, parent, or reciprocal beneficiary with a serious health condition

It should be noted that pregnancy is considered a serious health condition under the FMLA and in the state of Hawaii.

Paid sick leave in Hawaii

The Hawaii Department of Labor doesn’t have any provisions regarding vacation time or sick leave; these matters are left up to the employer.

Rippling automates and customizes your leave policy, giving you full visibility into how employees are utilizing it.

Workplace safety in Hawaii

Private employers have a legal responsibility to provide employees with a hazard-free workplace. They can do this by providing employee safety training and giving workers personal protective equipment so they can perform their jobs safely. 

OSHA—the Occupational Safety and Health Administration—is the federal department that oversees workplace safety and health. At the state level, there’s the Hawaii Occupational Safety and Health Division (HIOSH), which is in charge of the state’s OSHA-approved safety plan. It’s responsible not only for enforcing regulations but also for offering training to help employers recognize hazards. 

HIOSH adheres to all federal guidelines and, in some areas, even goes a step further. Take a look at two major areas where the state division has enacted special provisions below.

Under the category of General Industry, employers are responsible for the following:

• Industrial lighting
• Worker intoxication
• Noise exposure
• Toxic substances

Under the category of Construction, employers are responsible for:

• Worker intoxication
• Cranes and derricks
• Signs, signals, and barricades

HIOSH covers all private-sector employees, with some exceptions. You can learn more about Hawaii laws, as well as industries that are considered exemptions from HIOSH oversight, on the osha.gov website.

Under Hawaii workers’ compensation law, Hawaiian employers must provide workers’ comp coverage if an injury or illness occurs on the job. Rippling PEO offers a convenient pay-as-you-go workers’ comp plan—you won’t have to pay upfront for the entire year. Instead, you can have peace of mind knowing you’re covered, freeing up more time to run your business.

Discrimination and harassment laws in Hawaii

The state of Hawaii takes employment discrimination and harassment in the workplace extremely seriously, and it has laws prohibiting such practices. Under the state’s anti-discrimination law, the Hawaii Employment Practices Act, employers are prohibited from discriminating against employees for the following protected characteristics:

• Religion
• National origin
• Ethnicity
• Race
• Ancestry
• Sex
• Sexual orientation
• Gender identity or expression
• Pregnancy
• Marital status
• Childbirth
• Breastfeeding or a related medical condition
• Mental or physical disability
• Status as a survivor of domestic or sexual violence
• Genetic information
• HIV/AIDS status
• Age
• Criminal history (unless the individual has been convicted of a crime that is directly related to their responsibilities at work)
• Credit history

As you can see, this list is extensive; Hawaii has some of the most progressive anti-discrimination legislation in the US. The Hawaii Civil Rights Commission (HCRC) is responsible for overseeing these laws.

Employers are expected to be in compliance with this legislation during the whole of the employment relationship, from hiring a new employee to paying, promoting, and terminating them. 

The HCRC also considers harassment to be a form of discrimination. When there is unwanted behavior towards an employee based on the protected characteristics detailed above and it interferes with their well-being and ability to do their job, it’s considered harassment. 

Harassment can take many forms. It can be an offensive joke or insult, a racial or sexual slur, a physical or sexual assault, or it can involve requiring the employee to tolerate offensive working conditions in order to keep their job. 

Sexual harassment training requirements vary by state, and while Hawaii doesn’t currently have any mandates for employers, it’s still a good idea to make sure your employees are trained regularly. Training fosters a healthy and safe work environment by teaching boundaries and informing employees of their rights and resources. Rippling’s Learning Management System is pre-loaded with core sexual harassment training courses to ensure each employee meets the state requirements based on where they live. 

A final note: In Hawaii—as elsewhere in the US—employers are on the hook for any discrimination and harassment they and their employees commit, whether or not they were aware it was happening. 

Unions in Hawaii

A labor union is organized by a group of employees who wish to act collectively to negotiate fair working conditions with their employer. Typically, labor unions draw up collective bargaining agreements with the employer on topics like rate of pay, benefits packages, and time off. They’re protected by the federal government’s National Labor Relations Act (NLRA), which guarantees the following employee rights:

• Join a union or organize one to negotiate with their employer.
• Bargain collectively, which is done by choosing employee representatives to negotiate for them.
• Talk about their employment terms and conditions with coworkers.
• Act to improve working conditions; employees can invite unions to their workplace for help and file complaints with their employer or the government.
• Picket and go on strike.
• Abstain from joining a union at their workplace.

Unions can’t threaten employees as a means to get them to join, and similarly, employers can’t take any actions to coerce employees not to join. Such actions are illegal under the NLRA.

In addition to this federal statute, employers also need to consider state-level “right-to-work” laws, which leave it up to the employee to freely decide whether or not they’d like to become a union member. While Hawaii doesn’t have a right-to-work statute, the rights of workers to form, join, or assist a labor union are enshrined by other state statutes. 

FAQs about Hawaii labor and employment laws

Are independent contractors covered under Hawaii employment laws?

No. Generally speaking, independent contractors in the state of Hawaii are not afforded the same rights as employees. The laws around classifying employees and independent contractors are, however, quite clear. You can use our handy analyzer tool to ensure you’re classifying workers correctly and complying with employment regulations.

Does at-will employment exist in Hawaii?

Hawaii is an at-will employment state, which means an employer can terminate an employee for any reason and at any time. According to the State of Hawaii Wage Standards Division, however, there are two exceptions to this rule. The first is in cases in which the employer and employee have a contract that requires the former to notify the latter of their intent to end the employment relationship. The second is in cases in which the employee is a member of a union that has a collective bargaining agreement (CBA) with the employer. The CBA may require notice and/or a reason to be provided before an employer can fire a union member.

What privacy rights do employees have in Hawaii?

The Hawaii State Constitution protects individual privacy rights, but there are some additional laws that grant employees the right to privacy in the workplace. The Uniform Employee and Student Online Privacy Protection Act, for instance, prohibits employers from asking job candidates or employees to give them login information to their personal online accounts, like their email or social media.

Are background checks legal in Hawaii?

Yes, employers in Hawaii can run background checks on job applicants, but only after a conditional offer of employment has been made to the candidate.

Are whistleblowers protected in Hawaii?

Yes. Hawaii’s state whistleblower protection laws safeguard employees who inform the government of their employer’s illegal activities from retaliation by said employer.

Is workers’ compensation coverage required in Hawaii?

Yes. In the state of Hawaii, all businesses with employees—whether they’re full or part-time, permanent or temporary—must provide workers’ compensation insurance coverage.

Are there required healthcare benefits in Hawaii?

Federal law requires employers with 50 or more full-time employees to provide them with health insurance benefits. Additionally, according to the Hawaii Department of Commerce and Consumer Affairs, all employers who have one or more employees—regardless of whether they are full or part-time, permanent or temporary—must provide Prepaid Health Care Act coverage to employees who meet the eligibility requirements.

Are Hawaii employers required to provide bereavement leave?

No. In the state of Hawaii, employees aren’t entitled to bereavement leave or leave to attend a funeral.

What employee protections are available in Hawaii if layoffs occur?

In the state of Hawaii, as elsewhere in the US, if a business is covered by the federal Worker Adjustment and Retraining Notification (WARN) Act, its employees are entitled to a 60-day notice before being laid off. 

Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.