As someone who has lived and worked in Hawaii, you know that navigating our state’s unique employment landscape can be challenging. Whether you’ve been in your job for years or are seeking a new opportunity, it’s essential to understand the employment laws that govern our local businesses. Being informed ensures that you’re treated fairly under the law and that you’re aware of your rights and benefits as a local worker.

Hawaii is an at-will employment state.

This means that an employer can terminate an employee at any time, for any reason, without having to provide a warning first or an explanation later. There are exceptions, however, and they’re important to know: If a contract is in place that requires the employer to notify the employee that they will be let go, that contract must be upheld and notice must be provided. The second exception is for employees who are members of a union, and whose union has a collective bargaining agreement (CBA) with the company. That agreement might require advance notice and/or a reason to be provided for termination of an employee.

Background checks can be requested and completed.

All employers are allowed, under the law, to conduct a background check to make sure you are who you say you are and that you were honest and truthful in your resume and interviews, but they are only allowed to do so after a conditional offer of employment has been made.

Workers’ compensation is required.

All businesses operating across Hawaii must provide workers’ compensation benefits to all employees, regardless of how long they’ve been on the job and regardless of whether they are permanent, temporary, full- or part-time employees.

Health insurance benefits are required here.

Under the federal health care law, employers with 50 or more full-time employees are required to provide health insurance benefits to their staff. Further, employers who have one or more employees, regardless of whether those employees are permanent, temporary, full- or part-time, are required to provide Prepaid Health Care Act coverage to all employees who meet the eligibility requirements established by the Hawaii Department of Commerce and Consumer Affairs. But…

Paid bereavement time is not covered.

Companies based in or operating in Hawaii are not required to provide you paid time off to attend funeral services or after the death of a loved one.

Verification of immigrant status.

Like all other states, in Hawaii, employers are required to follow all federal immigration laws, but the use of the E-Verify program is voluntary, not required.

Drug testing is not mandatory.

Companies are not required to conduct drug or alcohol testing. If a company wants to conduct such tests, there is a strict process to which the company must adhere, as spelled out in the state constitution, statues, regulations and local ordinances. If an employee refuses to participate in one of these tests, they can be terminated or otherwise reprimanded.

Sick leave is not required.

Hawaiian companies are not required to provide sick leave or vacation benefits, paid or unpaid, to employees, but if the company chooses to provide either or both benefits, employees must be provided with written notice of the terms under which such leave can be used.

Wage requirements and expectations.

This is where things can get a little complicated. The minimum wage in Hawaii is $14.00 per hour for all jobs that do not get tips and $12.75 per hour for tipped wages. For tipped employees, the rate of $12.75 per hour applies for jobs in which people can regularly earn more than $20 per month in tips but any tips that are earned with proof of receipt or other deposit cannot be claimed or taken by the employers, unless federal or state law requires it. Wages are to be paid at least twice per month, on the say days each month.

Pay Transparency Requirements

Under Hawaii’s new Pay Transparency Law, employers with 50 or more employees who post job listings must include the hourly rate or salary range that reasonably reflects the expected compensation for the position. This ensures transparency for job seekers and provides clarity on wage expectations before applying. If you would like more information about Hawaii’s Pay Transparency Law, you can check the Hawaii Labor FAQs.

Find a Great Job in Hawaii

If you find all of this complicated and confusing, don’t fret: Call Bishop & Co. instead! Our staffing experts can help you navigate the state employment laws in Hawaii to make sure you’re getting paid what you’re owed and treated as you should under the law. We can also help you find a great new job if you don’t like what you find out! Take a look at our job board to see which positions are available, then call Bishop & Co to get started on your next career.