Hawaii Broadens Pay Transparency and Equal Pay

On July 3, 2023, Hawaii enacted SB 1057, requiring job listings to disclose the hourly rate or salary range that “reasonably reflects the actual expected compensation” for the position. This law aims to increase pay transparency and promote equal pay.

The law applies to most job advertisements but excludes listings for internal transfers or promotions, public employee positions with compensation determined by collective bargaining agreements, and positions with employers having fewer than 50 employees.

SB 1057 also expands Hawaii’s equal pay requirements, prohibiting employers from paying employees in any protected category less than others for “substantially similar work” instead of just “equal work.” Protected categories include race, sex, sexual orientation, age, religion, and more. Pay differentials are allowed under specific conditions, such as seniority, merit, or other permissible factors unrelated to protected categories.

The law takes effect on January 1, 2024.

Reference Date is Aug 3, 2023. [Open Source]