Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.
In addition to federal regulations, each state has their own share of employment laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.
Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports Hawaii state unemployment taxes on your behalf, you’ll need to close your Hawaii State Unemployment and Withholding accounts prior to joining our platform. Here are the steps to do that.
Hawaii - State Unemployment Insurance
Recruiting & Hiring Practices
Salary History Ban
Hawaii law prohibits employers from inquiring about a job applicant's salary history.
Hawaii State Legislature: HB 2137 Relating to Equal Pay
Hawaii law prohibits discrimination based on arrest and court records and restricts the circumstances in which employers can inquire about a job applicant’s conviction records.
Hawaii Civil Rights Commission: Arrest and Court Record Discrimination Prohibition
When classifying workers as employees or independent contractors, there are a few things to consider, including the different tests that apply under different federal and state employment laws, and potential penalties and other liabilities for misclassifying employees as independent contractors. Certain state laws apply tests that are more stringent than the guidance provided by federal agencies, such as the IRS and Department of Labor, to apply in conjunction with federal laws.
You can read our general Help Center article on contractors, and view information on how to determine if someone is a contractor or employee in Hawaii in the relevant section at the link below.
Hawaii Department of Labor (DOL): Handbook for Employers
Pay & Benefit Requirements
Minimum Wage and Overtime
Hawaii employers can find the most up-to-date minimum wage and overtime requirements at the link below.
Hawaii DOL, Wage Standards Division: Hawaii Pay Requirements.
The Hawaii Prepaid Health Care Act (HPHCA) requires employers to offer subsidized health coverage to most Hawaii employees.
Justworks helps employers meet this requirement by providing access to a Kaiser Permanente medical plan.
Hawaii DOL, Disability Compensation Division: FAQ about the Prepaid Health Care
Kaiser Permanente: Hawaii
State Disability Insurance
Hawaii Temporary Disability Insurance (TDI) is a partial wage-replacement program for Hawaii workers for nonwork-related injury or sickness, including pregnancy. The disability leave may run for a maximum of 26 weeks, at 58% of the employee’s average weekly wages up to the maximum weekly benefit amount annually set by the Disability Compensation Division.
Justworks uses Pacific Guardian Life to administer TDI benefits. If an eligible employee wishes to make a claim, they can find the form and instructions here.
Justworks customers should use the following details for their employer of record information:
Justworks Employment Group LLC
P.O. Box 7119
Church Street Station
New York, NY 10008-7119
Claims will come directly to Justworks and we will reach out to the customer for details when necessary.
Hawaii DOL Disability Compensation Division: FAQ about Temporary Disability Insurance
In addition to federal law requirements, Hawaii law requires employers with 100 or more employees to allow eligible employees to take up to four weeks of unpaid, job-protected family leave during any calendar year for reasons related to their own or a family member’s illness, or the birth or adoption of a child.
Hawaii DOL, Wage Standards Division: Hawaii Family Leave Law FAQ
Victim Protections Leave
Hawaii law requires employers to provide job protected leave to victims of (or the parents of minor children who are the victims of) domestic abuse, sexual assault, or stalking, among other job protections.
Hawaii Civil Rights Commission: Hawaii Victim Protections FAQ
Hawaii employers should familiarize themselves with specific compliance requirements for terminating employees.
Under Hawaii law, employers must pay final wages to terminated employees as follows:
- Employees who are involuntarily terminated must receive their final pay immediately, or not later than the next working day.
- Employees who give at least one pay period of advance notice of their intent to voluntarily quit or resign must receive their final pay on their last day of work.
- All other employees who voluntarily quit or resign must be paid no later than the next regular payday.
Hawaii employers are not required to pay accrued but unused vacation upon termination. As a best practice, employers should clearly set forth in writing any policy with respect to unused vacation.
Hawaii DOL, Wage Standards Division: Final Wages FAQ
Business Closings and Layoffs
Federal and state law in Hawaii impose certain notice and other obligations on businesses before conducting large-scale business closures, layoffs, or relocations. Under Hawaii law, businesses with as few as 50 employees may be covered. For more information on these laws, visit the links below.
U.S. Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act Advisor
Hawaii Workforce Development Council: The WARN Act
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.