Hawaii: New Pay Transparency Requirements for Hawaii Employers

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APPLIES TO

As Indicated

EFFECTIVE

January 1, 2024

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Quick Look

  • Effective January 1, 2024, employers in Hawaii are required to disclose an hourly rate or salary range that reasonably reflects the actual expected compensation for the job for each job listing.
  • Hawaii’s equal pay law is expanded to prohibit pay discrimination on the basis of any protected characteristic under Hawaii law.
  • Under Hawaii’s revised equal pay law, employees must receive equal pay if they are performing “substantially similar” work.

Discussion

On July 3, 2023, Hawaii Governor Josh Green signed SB 1057, requiring pay transparency in Hawaii job postings. Under the law, and effective January 1, 2024, Hawaii employers with 50 or more employees will be required to disclose an hourly rate or salary range that reasonably reflects the actual expected compensation for the role in each job listing.  Notably, the law does not define “hourly rate” or “salary range,” and it does not require employers to disclose pay information in job listings for positions that are internal transfers or promotions within the company.

The law explicitly excludes job listings for positions with employers that have fewer than fifty employees and public employee positions for which salary, benefits or other compensation are determined pursuant to collective bargaining.  Additionally, the law does not specify whether the 50-employee threshold refers to employees within Hawaii or to a company’s total employee count. Employers will want to monitor interpretations in this regard, prior to and following the law’s effective date.

Aside from pay transparency, SB 1057 also amends Hawaii’s equal pay law in two significant ways. First, the equal pay law will now prohibit pay discrimination based on any protected category under Hawaii law, not just sex. This includes pay discrimination based on race, sex (including gender identity or expression), sexual orientation, age, religion, color, ancestry, disability, marital status, arrest and court record, reproductive health decision, or domestic or sexual violence victim status.

Second, SB 1057 adopts a different standard for comparing employees for purposes of analyzing differentials in employee pay. Hawaii’s previous equal pay law tracked the federal Equal Pay Act, applying the “equal work” standard, which requires employee to establish that they were paid less than another employee for “equal work on jobs the performance of which requires equal skill, effort, and responsibility, and that are performed under similar working conditions.” The amendment broadens the protections to allow comparison of employees who are performing “substantially similar work” rather than “equal work.” Both amendments to the equal pay law are effective January 1, 2024.

Action Items

  1. Have an audit conducted of employee job descriptions and compensation rates to confirm compliance with the new requirements.
  2. Update job postings to comply with pay transparency requirements.
  3. Train appropriate personnel on job posting and equal pay requirements.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2023 ManagEase