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Hawaii Employer HR Compliance Guide

Hawaii is one of the most employee-protective states in the country, layering unique programs like the Prepaid Health Care Act (mandatory employer-provided health insurance) and Temporary Disability Insurance (TDI) on top of federal requirements. Compliance burden is high, with obligations spanning pay transparency, paid family leave, mandatory health coverage, and a broad anti-discrimination statute covering 14+ protected classes. Key recent changes include a minimum wage increase schedule through 2028, a 2024 pay transparency law, and a 2025 law establishing minimum civil penalties for wage-and-hour violations.

Key Facts — Hawaii

Minimum Wage: Hawaii's minimum wage is $14.00/hour currently, rising to $16.00/hour in 2026 and $18.00/hour in 2028 per HRS 387-2. There are no significant county-level variations; the state rate applies statewide.
Pay Transparency: Under HRS 378-2.8 (effective January 1, 2024), private and public employers with 50 or more employees must include the reasonably expected actual wage rate or range in all job postings, internal and external. The 50-employee threshold is based on total workforce size across all locations, not just Hawaii employees. All employers, regardless of size, must provide detailed wage information to new hires at the time of hire and advance notice of any wage changes under HRS 388-7.
Paid Family & Medical Leave: Hawaii Family Leave Law (HFLL) provides up to 4 weeks of unpaid family leave per calendar year for employers with 100 or more employees. For paid temporary disability, Hawaii's Temporary Disability Insurance (TDI) program requires employers to provide short-term disability coverage paying up to 58% of an employee's average weekly wage (up to the state cap) for up to 26 weeks of non-work-related illness or injury. Employers may satisfy TDI through a state-approved private plan or the state fund; employer contribution rates vary by plan.

Priority Compliance Actions

1Update all job postings (internal and external) to include the actual expected wage rate or salary range if you have 50 or more employees statewide.
2Audit exempt employee salaries to ensure they meet Hawaii's $4,000/month minimum salary threshold for overtime exemption.
3Confirm compliance with the Prepaid Health Care Act by verifying health insurance is offered to employees working 20+ hours/week who earn at least 86.67x the current minimum wage per month.
4Review and update new-hire paperwork to include all required wage disclosures under HRS 388-7, including pay rate, pay frequency, and vacation/sick leave policies.
5Ensure your TDI (Temporary Disability Insurance) coverage—through a private plan or state fund—is current and that payroll deductions and employer contributions are correctly calculated.

Leave Laws

Federal FMLA applies to Hawaii employers with 50+ employees, providing up to 12 weeks of unpaid leave. Hawaii's HFLL (HRS 398) requires employers with 100+ employees to provide up to 4 weeks of unpaid family leave for birth, adoption, or serious family illness. Hawaii's paid sick leave is provided through the Earned Sick Leave law: employers with 100+ employees must provide up to 40 hours per year; employers with fewer than 100 employees must provide up to 40 hours per year of unpaid sick leave. Hawaii TDI also functions as a de facto disability leave program covering non-occupational illness or injury.

Wage & Hour

Overtime is owed at 1.5x the regular rate for all hours over 40 in a workweek per HRS 387-3. Hawaii's overtime exemption threshold requires a salary of at least $4,000/month (plus a duties test), which is more aggressive than the current federal threshold. Employers must pay wages at least twice per month (semi-monthly); final paychecks for discharged employees must be issued on the next regular payday or within 72 hours, whichever is sooner, and immediately for employees who quit with prior notice. Act 115 of 2025 establishes a minimum $500 civil penalty per violation of the Hawaii Wage and Hour Law.

Worker Classification

Hawaii is an at-will employment state, though the broad Employment Practices Act (HRS 378) limits terminations based on any of 14+ protected characteristics. For independent contractor classification, Hawaii applies a version of the ABC test under unemployment insurance law: a worker is presumed an employee unless the hiring entity can show (A) freedom from control, (B) work outside the usual course of business, and (C) an independently established trade or business. Non-compete agreements are enforceable in Hawaii but disfavored; courts apply a reasonableness test considering duration, geographic scope, and legitimate business interest.

Hiring & Onboarding

Hawaii has a ban-the-box law (HRS 378-2.5) prohibiting most private employers from inquiring about conviction history until after a conditional job offer is made. There is no statewide salary history ban, but pay transparency notification obligations at hire effectively limit reliance on prior pay. Employers must report new hires to the Hawaii New Hire Reporting Program within 20 days of hire. Drug testing is permitted but must follow Hawaii's Drug Testing Law (HRS 329B), which requires written policy disclosure, confirmatory testing, and employee access to results.

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