01HRS § 387-2 — phased increases through 2028
Hawaii's minimum wage is $14.00/hr — under HRS § 387-2. The rate took effect January 1, 2024 after 2022 SB 2018 enacted phased increases. Hawaii Department of Labor and Industrial Relations administers minimum wage compliance.
Phased schedule under 2022 SB 2018: $14.00 effective January 1, 2024; $16.00 effective January 1, 2026; $18.00 effective January 1, 2028. After 2028, no further scheduled increases. Distinguishes Hawaii from CPI-indexed states where increases continue automatically through inflation indexing. The legislature would need to enact further raises through future legislation.
Tipped wage $12.75 (current) with narrowest tip credit ($1.25): tipped employees of restaurants, hotels, and other establishments who customarily receive tips may be paid tipped wage rate if they consistently earn $20+/month in tips. Tip credit is $1.25 (difference between $14.00 minimum and $12.75 tipped wage). Tip credit will widen with minimum wage increases.
'Tipped employee plus' framework (HI-distinctive): Hawaii law requires that the combined cash wage + tips be at least $7.00 above the minimum wage to qualify for tipped wage payment. The $7 buffer prevents tipped wage from being claimed when worker's combined compensation falls within the floor of minimum wage. Workers whose combined cash + tips fail the $7 buffer must be paid full minimum wage. Distinguishes HI from federal (only requires reaching minimum wage with tips) and most states.
$20/month tip threshold: lower than federal $30/month (parallel to KS $20/month and AR $20/month). Workers earning $20-29/month in tips qualify as tipped employees under HI law (but not federal law). Multi-state operators applying federal $30 threshold may face HI exposure for workers earning $20-29/month in tips. Coverage exemptions (HRS § 387-1): agricultural workers; outside salespeople; certain executive/administrative/professional employees; federal employees; certain workers in religious or charitable organizations. Tip ownership and pooling: tips belong to workers; employers cannot retain or withhold tips. Tip pooling allowed under HI law under certain circumstances. Multi-state operators with HI workforces should configure: $14.00 HI minimum scaling to $16/$18 in 2026/2028; tipped wage $12.75 scaling proportionally; 'tipped plus' $7 buffer requirement; $20/month tip threshold; tip ownership protections.
Read the full Hawaii $14 to $16 to $18 scheduled hi minimum guide →
02HRS § 393 — universal employer health insurance since 1974
Hawaii Prepaid Health Care Act (PHCA) under HRS § 393 — enacted 1974 — is the ONLY state law in the country mandating employer-provided health insurance. The PHC Act was preempted by ERISA (Employee Retirement Income Security Act of 1974) in October 1981, but Congress restored the law via federal exemption in 1983. Hawaii remains the only state with a statutory exemption to ERISA preemption.
Worker eligibility (HRS § 393-5): workers averaging 20+ hours per week for 4 consecutive weeks earning at least 86.67× current minimum wage monthly are eligible. With $14.00 minimum, eligibility threshold is $1,213.38/month. With scheduled $16.00 minimum in 2026, threshold rises to $1,386.72/month. Coverage commences at the earliest enrollment date of employer's health care plan after 4 consecutive weeks of qualifying employment.
Worker exclusions (HRS § 393-5): individuals working less than 20 hours per week; federal, state, and county workers; agricultural seasonal workers; insurance or real estate salespeople paid solely by commission; individuals working for son, daughter, or spouse; children under age 21 working for father or mother. Workers covered by Medicare, Medicaid, military medical care, or as dependents under qualified plans may waive PHCA coverage by filing Form HC-5.
Employer obligations (HRS § 393-7): employers must purchase approved health care plan from health care contractor; adopt approved self-insured plan; or negotiate collective bargaining agreement providing equivalent benefits. Employer pays at least 50% of premium for single coverage. Worker contribution capped at lesser of: 50% of premium; OR 1.5% of monthly wages. Workers cannot agree to pay greater share except for added cost of dependent coverage under same plan.
Plan types — 7(a) and 7(b): 7(a) plans provide rich benefits comparable to plan with largest number of subscribers in Hawaii (the 'prevalent plan'). 7(b) plans provide basic coverage with higher deductibles, out-of-pocket limits, and copays. Dependent coverage: 7(a) plans don't require employer subsidy of dependent coverage; 7(b) plans require employer to pay one-half of dependent coverage cost. Disability continuation: if worker becomes disabled and unable to work, employer must continue paying employer's share of premium for 3 months following month worker became disabled, OR for period employer pays regular wages, whichever is longer. Premium Supplementation Fund: established 1974 by general fund appropriation. Reimburses employers with fewer than 8 employees for portion of premium costs. Employers must meet criteria in Form HC-6 and file claim within 2 years after close of taxable year. Principal employer determination: if worker employed by multiple employers, the principal employer (paying most wages) provides PHC coverage. If worker employed for at least 35 hours/week by employer not paying most wages, worker may designate that employer as principal. Multi-state operators with HI workforces should configure: PHC eligibility tracking (20+ hours/week, 86.67× minimum wage monthly); 4-week qualifying employment threshold; 50% employer premium contribution; 1.5% wage cap on worker contribution; principal employer designation framework; disability continuation coverage; HC-5 form workflow for federal/dependent waivers; HC-6 small employer supplementation if eligible.
Read the full Hawaii hawaii prepaid health care act (only state mandate) guide →
03HRS § 392 — disability benefits since 1969, no state-run program
Hawaii Temporary Disability Insurance (TDI) under HRS § 392 — enacted 1969 — provides up to 26 weeks of partial wage replacement benefits to workers unable to work due to non-work-related illness or injury (including pregnancy and organ donation). TDI is the second-oldest state TDI program (after Rhode Island 1942 — first state in nation). HI DLIR Disability Compensation Division administers TDI.
HI-distinctive: NO state-run TDI program. Hawaii does NOT operate state-administered TDI. Employers must self-insure (with HI DLIR approval, requiring proof of financial solvency) or provide fully insured plan through state-approved insurance carrier (MetLife, UniCare, and other approved carriers). Distinguishes HI from RI (state-administered TDI/TCI since 1942), CA (state SDI/PFL), NJ (state TDI/FLI), and NY (state DBL) where state operates the disability insurance program.
Benefit calculation: 58% of worker's average weekly wage, rounded to next higher dollar. Maximum weekly benefit $871 (2026). The benefit calculation methodology updates annually. 7-day waiting period before benefits begin. Up to 26 weeks per benefit year — distinctive among state TDI/disability programs (RI: 30 weeks; CA: 52 weeks SDI; NY: 26 weeks DBL; NJ: 26 weeks TDI).
Employee contributions: max 0.5% of weekly wage capped at $7.50/week ($390/year). For fully insured plans, employees cannot pay more than 50% of total premium AND no more than 0.5% of weekly wage up to maximum weekly wage base ($1,500.21 in 2026). Employers pay balance of premium. Employer may also choose to fund the entire benefit on behalf of employees. Employee contributions stop once weekly wage base reached for the year.
Worker eligibility: generally must have worked for Hawaii employer for at least 14 weeks during preceding 52 weeks AND earned $400+ during that period. The 14-week / $400 threshold distinguishes HI TDI from federal FMLA's 12-month / 1,250-hour threshold. Self-employed workers may opt-in to coverage. Filing claim: workers have 90 days from disability onset to file TDI claim (Form TDI-45 or similar). Physician must certify worker's inability to work. Job protection NOT provided through TDI (only wage replacement). Job protection may flow from federal FMLA (50+ employees, 12 months/1,250 hours service); Hawaii Family Leave Law (100+ employees, 6 months service); or PHCA disability continuation (3 months employer premium contribution). Multi-state operators with HI workforces should configure: TDI insurance procurement (self-insure or approved carrier); 0.5% / $7.50/week employee contribution cap tracking; 14-week / $400 eligibility verification; 7-day waiting period; 26-week max benefit duration; 90-day claim filing deadline; coordination with FMLA and HFLL job protection.
Read the full Hawaii hawaii tdi (26 weeks at 58% wage replacement) guide →
04HRS § 398 — 4 weeks unpaid annually with sick leave substitution
Hawaii Family Leave Law (HFLL) under HRS § 398 provides up to 4 weeks unpaid job-protected leave per calendar year at employers with 100+ employees. Worker eligibility: 6 consecutive months of service (lower than federal FMLA's 12 months / 1,250 hours).
Use categories (HRS § 398-3): birth or adoption of child; care for child, parent, sibling, spouse, grandchild, or reciprocal beneficiary with serious health condition. The reciprocal beneficiary category is HI-distinctive — Hawaii recognizes reciprocal beneficiary relationships under HRS § 572C (formal partnership status for unmarried adults including same-sex partners pre-2013 marriage equality and family relationships such as siblings or aunt/nephew) as covered family for leave purposes.
Sibling coverage is HI-distinctive: HFLL explicitly covers care for sibling with serious health condition. Federal FMLA does not cover siblings (only spouse, child under 18, parent). The broader family member definition reaches more caregiver scenarios.
Sick leave substitution: if employer provides paid sick leave, worker may use up to 10 days of accrued and available sick leave per year instead of unpaid HFLL leave (unless collective bargaining agreement provides for more than 10 days). The substitution lets workers receive paid leave instead of unpaid HFLL when sick leave is available. Hawaii does not have universal mandatory paid sick leave (no state PSL framework), so sick leave availability depends on employer policy.
Federal FMLA concurrent run: when worker qualifies for both federal FMLA (50+ employees, 12 months service, 1,250 hours) and HFLL (100+ employees, 6 months service), leaves run concurrently rather than sequentially. Federal FMLA provides up to 12 weeks per 12-month period; HFLL provides up to 4 weeks within calendar year. Concurrent run prevents stacking. Job protection: employer must restore worker to same or equivalent position with equivalent benefits, pay, and terms. Notice requirements: worker must give reasonable notice when foreseeable. Employer may require medical certification for leave related to serious health condition. No state mandatory paid family/medical leave: distinguishes HI from CA, NY, NJ, MA, ME (eff May 2026), RI, WA, CO, MN, CT, MD, DC mandatory PFML states. HI relies on PHCA disability continuation, TDI, and HFLL unpaid leave. Multi-state operators expanding to HI should configure: HFLL at 100+ employees; 6-month service eligibility; reciprocal beneficiary and sibling coverage; sick leave substitution policy; FMLA concurrent run; medical certification workflow.
Read the full Hawaii hawaii family leave law (100+ employees) guide →
05HRS § 378 — anti-discrimination with arrest record protection
Hawaii Employment Practices Act under HRS § 378 prohibits employment discrimination at the 1+ employee threshold — among the lowest in the country alongside OK (OADA at 1+), ME (MHRA at 1+), NM (NMHRA at 1+ for some categories), DC (DCHRA at 1+), VT (VFEPA at 1+).
Protected categories: race, sex (including gender identity and gender expression), age (40+), religion, color, ancestry, disability, marital status, arrest and court record, sexual orientation, national origin, citizenship or immigration status, credit history or report (employment context), domestic or sexual violence victim status, breastfeeding status. Hawaii's category list broader than federal Title VII, ADEA, ADA, GINA, PWFA combined.
Arrest and court record protection (HI-distinctive): Hawaii is one of the few states to explicitly protect arrest/court record as a category. Convictions can be considered post-offer only if they bear a rational relationship to role's duties and responsibilities (e.g., embezzlement conviction relevant to financial role; assault conviction relevant to security role). Arrest records (without conviction) cannot be used in employment decisions. Distinguishes HI from most states with limited or no arrest/conviction protection. Multi-state operators must configure post-offer-only background check workflow with rational relationship analysis.
Credit history protection: HRS § 378-2 prohibits discrimination based on credit history or credit report in employment decisions, except when credit information directly relates to bona fide occupational qualifications. Credit checks may only be performed post-offer and for certain types of jobs (financial positions, fiduciary roles). Distinguishes HI from most states with no credit history protection.
Pre-hire wage history inquiry ban (effective 2018): HRS § 378-2.4 — employers cannot inquire about or rely on prospective worker's wage history when making hiring or compensation decisions. Workers cannot waive these rights. Limited exception: workers may voluntarily and without prompting disclose wage history. Pay transparency at 50+ employees (effective Jan 1, 2024): HRS § 378-2.4 — employers with 50+ employees must include hourly pay or salary range in job postings. Range must reflect employer's good faith belief at time of posting. Distinguishes HI 50+ threshold from other state thresholds (CA 15+, CO 1+, IL 15+, NY 4+, RI 1+, VT 5+, DC 1+, WA 15+). Enforcement: Hawaii Civil Rights Commission enforces HRS § 378. Workers may file complaint within 180 days. Workers may pursue parallel federal claims under Title VII (Bostock-protected SO/GI), ADA, ADEA, GINA, PWFA where applicable. Multi-state operators expanding to HI should configure: anti-discrimination compliance from 1 employee; arrest/court record workflow with post-offer rational relationship analysis; credit history restrictions; wage history inquiry ban; pay transparency at 50+ employees; comprehensive background check policy review.
Read the full Hawaii hi employment practices act (1+ employee + arrest record) guide →
06HRS § 387 — federal mirror; HRS § 388 wage payment
Hawaii has state OT statute under HRS § 387 mirroring federal FLSA: 1.5× regular rate for hours worked over 40 in a workweek. State OT statute provides parallel state enforcement track. Workers may pursue dual-track claims through HI DLIR Wage Standards Division or federal FLSA private action.
State exempt threshold $684/week federal default: HI does not set state-specific exempt salary threshold above federal FLSA. Annual threshold $35,568 federal. Multi-state operators with HI workforces use federal threshold. Distinguishes HI from ME ($871.16/week state-specific), CO ($55,068/year), CA ($66,560/year), NY ($1,300/week downstate).
Federal regular rate calculation under 29 CFR Part 778 controls. All compensation components must be included in regular rate calculation: hourly wages, nondiscretionary bonuses, shift differentials, commissions, certain piecework. Failing to include nondiscretionary bonuses in regular rate is a common employer mistake.
Pay frequency (HRS § 388-2): wages must be paid at least twice each calendar month on regular paydays. Bi-weekly minimum. Workers must be paid within 7 days of close of pay period. Monthly pay frequency permitted only for executive, administrative, professional employees earning above exempt threshold. Most workers receive bi-weekly or weekly pay.
Final pay (HRS § 388-3): terminated workers must receive final wages immediately or by next business day. Workers who quit get final wages on next regular payday. Among most aggressive state final pay rules alongside CA (immediate same-day), CT (next business day), DC (next business day). The framework requires post-termination administrative coordination — employers must process final payroll within compressed timeframe. Wage statement requirements (HRS § 388-7): pay statement at each pay period showing pay period dates; total hours worked; total wages earned; all deductions itemized; year-to-date totals; PHC contribution disclosure if applicable. Direct deposit allowed without transfer/transaction fees with worker consent. Hawaii has no state mandatory paid sick leave — distinguishes HI from many states with mandatory frameworks. Workers rely on employer-provided sick leave (which may be substituted into HFLL up to 10 days). No mandatory rest or meal breaks for adults: federal FLSA standards apply — short rest periods 5-20 minutes must be paid if employer provides them (29 CFR 785.18); meal periods 30+ minutes can be unpaid if worker is fully relieved (29 CFR 785.19). Workers under 16 entitled to 30-min meal break when working 5+ consecutive hours under HRS § 390-2(d). Multi-state operators with HI workforces should configure: federal FLSA OT at 40 hours; federal $684/week exempt threshold; bi-weekly pay frequency with 7-day close; immediate / next-business-day terminated final pay automation; comprehensive wage statement with PHC disclosure.
Read the full Hawaii hi ot + bi-weekly pay frequency guide →
07HRS § 390 — minimum age 14 with certificates; HIOSH dual coverage
Hawaii's child labor framework under HRS § 390 sets minimum working age at 14 (parallel to federal FLSA). Workers under 14 generally cannot be employed in non-agricultural occupations. Limited exceptions: parents/legal guardians; newspaper delivery; actors/performers in entertainment industry.
Employment certificates required for workers under 16: required during school hours unless work is part of approved educational or vocational course. Certificate workflow processes through worker's school. The framework parallels MA, NY, NJ, CT, ME, VT (states requiring employment certificates) and distinguishes HI from KS, IA, AR, OK (no certificate requirement).
Hour restrictions ages 14-15: limited hours per day and per week; no work during school hours; restricted evening hours. Federal FLSA hour restrictions apply in parallel (3 hours on school day, 8 hours on non-school day, 18 hours per school week, 40 hours per non-school week). Hour restrictions ages 16-17: no work during school hours unless approved educational/vocational course. Federal hazardous occupation prohibitions (29 CFR Part 570) apply: explosives manufacturing/storage; logging/sawmilling; power-driven woodworking machinery; work with radioactive substances; mining; roofing; excavation.
30-minute meal break for under-16 workers (HRS § 390-2(d)): workers under 16 working 5+ consecutive hours must receive 30-minute meal break. The break requirement applies only to under-16 workers — Hawaii does not require breaks for adult workers. Distinguishes HI from many states with broader meal break requirements (CA: 5-hour adult trigger; NY: 6-hour adult trigger; ME: 6-hour adult trigger with 3+ on duty condition; NH: 5-hour adult trigger). For adult workers, federal FLSA standards apply.
Hawaii Occupational Safety and Health (HIOSH) state plan: covers both private sector and public sector workplaces. Distinguishes HI from federal-only OSHA states (TX, FL, IL, GA, etc.) and ME (state covers only public sector). HIOSH enforces federal OSHA standards plus HI-specific standards (hot weather/sun exposure standards relevant for outdoor work; specific construction standards). HI DLIR administers HIOSH. Workers' compensation: Hawaii workers' comp coverage required for employers with 1+ employees performing work in Hawaii (includes federal employees performing work for Hawaii-based contractor). Most stringent threshold among states alongside OK, IA, UT, NE, VT. Industry concentration: tourism and hospitality (Waikiki Beach, Maui resorts including Wailea/Kaanapali, Big Island, Kauai); healthcare (Queen's Medical Center, Kaiser Permanente Hawaii, Hawaii Pacific Health); defense and federal contractors (Pearl Harbor, Hickam, Schofield Barracks, Kaneohe Bay, Joint Base Pearl Harbor-Hickam); construction; agriculture (sugar/pineapple historically, diversified agriculture currently — specialty crops, coffee, macadamia nuts). Each industry creates specific compliance focus including hospitality service charge handling under HRS § 481B-14 (service charges must be distributed to workers as tip wages or disclosed otherwise). Multi-state operators expanding to HI should configure: child labor minimum age 14; employment certificate workflow for under-16; 30-minute meal break for under-16 workers; hazardous occupation prohibitions for under-18; HIOSH reporting workflow for both private and public sector; workers' comp from 1 employee; service charge distribution disclosure.
Read the full Hawaii hi child labor + hiosh state plan guide →
08Multi-factor common law test; HRS § 378-71; HRS § 378-72
Hawaii applies a multi-factor common law test for IC classification, similar to IRS framework under Rev. Rul. 87-41. Factors evaluated: behavioral control (instructions on how work is performed); financial control (method of payment, tools/equipment, opportunity for profit/loss); relationship type (written contracts, employee benefits, permanence of relationship, regular business of employer).
Misclassification consequences: Hawaii Department of Labor may pursue UI back-contributions plus penalties; HI DLIR Disability Compensation Division may pursue TDI premium back-payment plus exposure for any disabilities during misclassified period; PHCA exposure for failure to provide health coverage to misclassified employees; federal IRS Form SS-8 reclassification with Section 3509 employment tax penalties; potential wage exposure under HRS § 388 with federal FLSA double damages.
Hawaii Whistleblowers' Protection Act (HRS § 378-61 et seq.): protects workers who report or are about to report violations of federal, state, or local law to public bodies. Coverage extends to: reports to government agencies; reports to law enforcement; reports of unsafe working conditions; reports of fraudulent activities. Workers may pursue civil action with: reinstatement; lost wages and benefits; compensatory damages; reasonable attorney fees and costs. 90-day filing window from retaliatory action.
Hawaii Domestic Violence Leave (HRS § 378-71 to § 378-72): employers with 50+ employees must provide up to 30 days of unpaid leave per calendar year for workers who are victims of domestic abuse, sexual assault, or stalking. Smaller employers (under 50) must provide up to 5 days of unpaid leave per calendar year. Leave may be used for: seeking medical treatment for injuries from domestic abuse/sexual assault; obtaining counseling; relocating to safe location; obtaining services from victim services organization; obtaining legal services or participating in legal proceedings. The 30-day allowance at 50+ employees is among the most generous state DV leave frameworks.
NOT a right-to-work state: Hawaii permits union security agreements requiring workers to join or pay fees to union as condition of employment. Distinguishes HI from Virginia, West Virginia, Indiana, Michigan, Kentucky, Texas, Florida (right-to-work states). Federal Labor-Management Relations Act § 14(b) explicitly authorizes states to enact right-to-work laws — Hawaii has not. Hawaii Lie Detector Tests prohibited (HRS § 378): workers have right to refuse lie detector tests. Federal Employee Polygraph Protection Act (29 USC § 2001) applies in parallel. Multi-state operators must configure no-polygraph hiring policy and screening review. Hawaii Mini-COBRA: federal COBRA only applies to 20+ employee employers. Hawaii does not have mini-COBRA framework — sub-20-employee workforces have no state continuation coverage requirement (PHCA continues during disability period under HRS § 393-11). Multi-state operators expanding to HI should configure: multi-factor common law IC analysis; whistleblower protection workflow; domestic violence leave at 50+ (30 days) and under 50 (5 days); union security agreement framework; no-polygraph hiring policy; PHCA disability continuation in lieu of mini-COBRA.
Read the full Hawaii hi ic + whistleblowers act + domestic violence leave guide →