Hawaii HR Consulting & Employment Law for Small Businesses

Hawaii is unique nationally for its mandatory employer-provided health insurance requirement, its Temporary Disability Insurance system, and some of the most progressive employment law protections in the Pacific.

Hawaii employers face obligations found nowhere else: the Hawaii Prepaid Health Care Act requires most employers to provide health insurance to employees working 20+ hours per week, a mandate unique in the United States. Hawaii also has Temporary Disability Insurance (TDI, a mandatory disability benefit), the Hawaii Family Leave Law (baby bonding at 100+ employees), and among the highest minimum wages in the country.

Note: This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a qualified employment attorney for advice specific to your situation.

Key Hawaii Employment Laws

Hawaii Prepaid Health Care Act

Hawaii is the only state in the US that requires most private employers to provide health insurance to employees who work 20 or more hours per week and have been employed for 4 weeks. Coverage must meet minimum statutory standards. Employees contribute no more than 1.5% of their monthly wages toward the premium cost.

Hawaii Temporary Disability Insurance

Hawaii's TDI provides income replacement for employees who are temporarily unable to work due to a non-work-related illness, injury, or pregnancy. Both employers and employees share the cost. TDI covers up to 26 weeks of leave at a percentage of the employee's regular wages.

Hawaii Family Leave Law

Employers with 100 or more employees must provide up to 4 weeks of unpaid, job-protected family leave per calendar year to eligible employees for baby bonding and to care for a child, spouse, or parent with a serious health condition.

Hawaii Salary History Inquiry Ban

Hawaii prohibits employers from inquiring about an applicant's prior salary history. Employers may not use salary history to set compensation unless the applicant voluntarily provides it after an initial offer has been made.

Compliance Thresholds for Hawaii Employers

1+ Employees: employees working 20+ hrs/week

  • Hawaii Prepaid Health Care Act: mandatory health insurance coverage required
  • Hawaii Minimum Wage applies (above federal)
  • Hawaii Wage and Hour Law (daily overtime: 1.5x after 8 hours if worked 7 consecutive days)

1+ Employees: employees

  • Hawaii TDI (Temporary Disability Insurance): mandatory coverage for non-work illness/injury

100+ Employees: employees

  • Hawaii Family Leave Law: 4 weeks unpaid baby bonding leave
  • Federal FMLA applies
  • ACA employer mandate

Common Questions About Hawaii Employment Law

Is the Hawaii health insurance mandate really required?

Yes. The Hawaii Prepaid Health Care Act is unique in the country. Most employers must provide health insurance to employees working 20 or more hours per week after 4 weeks of employment. Employee cost sharing is capped at 1.5% of monthly wages. Penalties for non-compliance are significant.

What is Hawaii Temporary Disability Insurance?

Hawaii TDI provides wage replacement benefits for employees who are temporarily unable to work due to non-work illness, injury, or pregnancy. Coverage is mandatory. Both employers and employees contribute. Benefits cover up to 26 weeks. Employees can use TDI concurrently with other leave protections.

What is the Hawaii minimum wage?

Hawaii has set a schedule of minimum wage increases above the federal rate, reaching $14/hour in 2024 and rising to $18/hour by 2028. Employers must track annual changes and update payroll accordingly.

Does Hawaii have a paid family leave program?

Hawaii does not have a state paid family leave program equivalent to California PFL or Washington PFML. The Hawaii Family Leave Law provides 4 weeks of unpaid leave for baby bonding at employers with 100+ employees. TDI can be used for pregnancy-related disability.

Does Hawaii ban salary history questions?

Yes. Hawaii prohibits employers from asking about an applicant's current or prior salary. Employers may not use salary history to set compensation unless the applicant voluntarily discloses it after receiving an initial offer.

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