On July 3, 2023, Hawaii joined eight other states, as well as eight cities/counties, by enacting SB 1057, which requires that certain job listings disclose the hourly rate or salary range that “reasonably reflects the actual expected compensation” for the position being posted.¹  According to the Hawaii legislature, including information about pay or salary in job advertisements will help increase pay transparency and equal pay for all employees. 

While the posting requirements apply to most job advertisements, the new law does not apply to job listings for:

• positions that are internal transfers or promotions with the current employer;
• public employee positions for which salary, benefits, or other compensation are determined pursuant to a collective bargaining agreement; or
• positions with employers with fewer than 50 employees.

The legislature did not define or provide guidance on the meaning of “reasonably reflects” or how that provision will be interpreted.  The legislature also did not specify whether the 50-employee requirement includes all employees of the employer or only those in the state of Hawaii.

SB 1057 also expands Hawaii’s existing equal pay requirements by prohibiting an employer from paying employees in “any protected category” listed in Hawaii’s employment discrimination statute less than it pays other employees in the establishment for “substantially similar work”—as compared to “equal work.”  These protected categories include 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.  “Substantially similar work” includes work performed under similar working conditions that requires equal skill, effort, and responsibility.

As was previously permissible under Hawaii’s equal pay statute, payment differentials are allowed when due to a seniority or merit system, a system that measures earnings by quantity or quality of production, a bona fide occupational qualification, or another permissible factor other than membership in a protected category.

SB 1057 goes into effect on January 1, 2024. Employers in Hawaii should begin preparing for the January effective date by making sure their human resources and compensation departments, as well as third parties they use for posting positions, are informed of and prepared to comply with the new requirements.  Additionally, employers should consider conducting privileged pay audits to ensure compliance with Hawaii’s equal pay requirements.