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Hawaii Enacts Pay Transparency Law and Expands Equal Pay Law

19 Jul


Update applicable to:

Employers who employ more than 50 employees in the state of Hawaii for the job listings requirement; all employers operating in Hawaii for the equal pay requirement

What happened?

We informed you in our previous communication (Link) that the bill was on the Governor’s desk for consideration. On July 3, 2023, Hawaii Governor Josh Green approved the bill.

What are the details?

The bill mandates that employers must disclose an hourly rate or salary range in job advertisements that accurately reflects the expected compensation for the position. Additionally, the revised equal pay law will now prohibit pay discrimination based on any protected category recognized under Hawaii law, not limited to gender. Furthermore, the law will compare employees who perform “substantially similar work” instead of just “equal work.” It will be effective from January 1, 2024. Note, that— unlike some other pay transparency laws—the Hawaii bill would not require disclosure of expected pay for internal transfers or promotions, employers need not consider these situations if preparing for compliance.

For more information, please see the links below:

Governor’s Bill Approval

Law Firm Article (contains further details)

Official Bill Page

What do employers need to do?

The Seyfarth Shaw law firm encourages Hawaii employers to take steps to ensure that they are ready to comply with the new law on January 1, 2024.  Employers should evaluate the practical implications of adding appropriate pay ranges to Hawaii postings and train hiring managers, talent acquisition professionals, and human resources employees on the requirements of the law.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's Hawaii PEO services can help you navigate complex employment laws and keep your business compliant.

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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