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July 19, 2023
On July 3, 2023, Hawaii enacted a law to bring pay transparency to job postings and to expand its equal pay law. See 2023 HI SB 1057. The law becomes effective on January 1, 2024.
Pay Disclosures
Hawaii employers will be required to disclose in job postings the hourly rate or salary range that reasonably reflects the role’s actual expected compensation.
This requirement does not apply to (1) job postings for companies with fewer than 50 employees; (2) job postings for public employees for which the salary and benefits are determined through collective bargaining; (3) job postings for internal transfers; and (4) job postings for promotions.
Equal Pay
Pay discrimination in Hawaii currently is prohibited on the basis of sex. The new law will prohibit pay discrimination based on any protected category under Hawaii law. Specifically, Hawaii employers will be prohibited from discriminating in pay on the basis of race, sex, gender expression or identity, sexual orientation, age, religion, color, ancestry, disability, marital status, arrest or court record, reproductive health decision-making, or status as a victim of domestic or sexual violence.
In addition to expanding the prohibitions on pay discrimination, the new law also includes a new standard for comparing employees. Rather than comparing employees who perform “equal work,” Hawaii will look at employees who perform “substantially similar work.”
Employer Takeaways
In advance of the January 1, 2024 effective date, Hawaii employers should review their job posting practices to ensure compliance with the new law. Employers also should train their human resources personnel and hiring managers on the requirements of the new law.
The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Hawaii, Pennsylvania, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
