Managing hourly workers in Hawaii can be complex — especially around paid sick leave laws.
State requirements can interact with federal standards, and in some areas, local rules may layer on additional obligations for employers.
Aloha!
Hawaii’s employment laws combine federal standards with a few state-specific provisions designed to protect workers’ pay and working conditions. The state maintains a higher minimum wage than the federal rate and continues to phase in additional increases through 2026. While Hawaii does not mandate paid sick leave or statewide rest breaks for adults, employers must ensure compliance with wage, timing, and classification standards.
Consistent record keeping and clear policies are key to maintaining compliance in the state’s service-driven economy.
This blog is based on information available to HireArt as of October, 2025. HireArt does not provide tax, accounting or legal advice. This material has been prepared for informational purposes only, and should not be relied on for, tax, legal or accounting advice. Consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.
Hawaii employers must comply with the state’s minimum wage, which is higher than the federal standard.
As of 2025, the minimum wage in Hawaii is $14.00 per hour, scheduled to increase to $16.00 in 2026. Employers must always apply the higher applicable rate between state and local law to ensure compliance.
Hawaii does not currently have a statewide paid sick leave requirement.
Employers may establish their own sick leave policies and should clearly define eligibility, accrual rates, and usage guidelines. Consistent policy enforcement helps ensure fair treatment and compliance with federal wage and hour standards.
Hawaii has no local jurisdictions with separate wage or leave ordinances.
Because labor laws are primarily set at the state level, employers across Hawaii operate under a uniform framework—simplifying compliance for companies with multiple locations on different islands.
Hawaii does not require meal or rest breaks for adult employees.
Employers may set their own policies or follow collective bargaining agreements (CBAs). Federal FLSA standards govern any applicable break pay requirements, particularly when short breaks are allowed during the workday.
Whether accrued paid time off (PTO) must be paid at termination depends on the employer’s written policy or contract.
If the policy states that unused vacation or PTO will be paid out, it must be honored upon separation. Maintaining clear documentation helps prevent disputes and ensures consistent application of company policies.
Hawaii does not have a general statute requiring employers to reimburse business-related expenses.
Employers should set clear policies outlining which expenses are reimbursable—such as travel, supplies, or communication costs—and what documentation employees must provide to receive payment.
Hawaii employers must provide detailed wage statements and pay final wages in a timely manner.
Accurate wage documentation helps prevent compliance issues and supports transparency with employees.
Hawaii uses both federal and state economic-realities tests to determine worker classification.
If an employer directs how, when, and where work is performed, the individual should be classified as a W-2 employee. Proper classification helps avoid costly penalties related to tax, wage, and insurance compliance.
HireArt serves as an Employer of Record (EOR) for companies hiring in Hawaii, simplifying compliance with state and federal labor laws. Through HireArt, employers can:
By partnering with HireArt, employers can confidently manage their Hawaii workforce while minimizing administrative complexity and legal risk.
