Hiring New Employees in Hawaii: A Legal Guide

Create a job posting that complies with Hawaii's employment laws. Avoid discriminatory language and ensure the posting doesn't ask for prohibited information. Hawaii law prohibits discrimination based on race, sex (including gender identity or expression), sexual orientation, age, religion, color, ancestry, disability, marital status, arrest and court record, reproductive health decisions, or domestic or sexual violence victim status.

Create an application form that complies with Hawaii law. Do not include questions about salary history (prohibited under Hawaii's Equal Pay Act), arrest records (unless they resulted in convictions that have a rational relationship to the position), or other protected characteristics. Include a statement about being an equal opportunity employer.

When interviewing, avoid questions related to protected characteristics. Focus on job-related qualifications, skills, and experience. Document the selection process to demonstrate non-discriminatory hiring practices.

Draft an offer letter that includes position title, start date, compensation, benefits, and employment classification (full-time, part-time, exempt, non-exempt). In Hawaii, clearly state if employment is at-will, meaning either party can terminate the relationship at any time with or without cause.

If using a formal employment contract instead of or in addition to an offer letter, ensure it complies with Hawaii law. Include details about job duties, compensation, benefits, work hours, paid time off, and termination conditions. Note that Hawaii recognizes implied contracts, so be careful about making promises that could modify at-will employment.

If the position requires access to confidential information, prepare an NDA that is reasonable in scope and duration. Hawaii courts generally enforce NDAs that protect legitimate business interests and are not overly restrictive.

If using a non-compete agreement, ensure it is narrowly tailored. Hawaii courts scrutinize non-competes and will only enforce those that are reasonable in geographic scope, duration, and activity restrictions. The agreement must protect legitimate business interests and not merely prevent competition.

Create a form that complies with the Fair Credit Reporting Act (FCRA) and Hawaii law. Obtain written consent before conducting background checks. Hawaii law limits the use of arrest records that did not result in conviction and convictions that are not rationally related to the position.

Conduct any necessary background checks, reference checks, or drug tests with proper authorization. Hawaii allows drug testing if done in a non-discriminatory manner with advance notice. For certain positions, verify required licenses or certifications.

Federal law requires completion of Form I-9 to verify identity and employment authorization. The employee must complete Section 1 by their first day of work. Employers must complete Section 2 within 3 business days of the employee's first day. Retain the form for the later of 3 years after hire date or 1 year after employment ends.

Have the employee complete the federal W-4 form to determine federal income tax withholding. Keep this form in the employee's file.

Have the employee complete Hawaii's state tax withholding form (HW-4) to determine state income tax withholding. Hawaii has its own state income tax system.

Federal and state law requires employers to report new hires to the Hawaii New Hire Reporting Program within 20 days of hire. Submit the New Hire Reporting Form with the employee's name, address, SSN, and start date, along with your company information.

Hawaii requires employers to provide Temporary Disability Insurance (TDI) coverage. Ensure your new employee is enrolled in your TDI plan, which provides partial wage replacement for non-work-related injuries or illnesses.

If offering direct deposit, have the employee complete an authorization form with their banking information. In Hawaii, employers cannot require direct deposit as the only payment method unless an exception applies.

Have the employee provide emergency contact information. This is not legally required but is a best practice for workplace safety.

If offering health insurance, retirement plans, or other benefits, provide the necessary enrollment forms. Hawaii's Prepaid Health Care Act requires employers to provide health insurance to employees who work 20+ hours per week for 4+ consecutive weeks. Coverage must begin after 4 consecutive weeks of employment or completion of the probationary period (not to exceed 90 days).

Provide an employee handbook that outlines company policies, procedures, and expectations. Include policies on anti-discrimination, harassment, leave, benefits, workplace safety, and complaint procedures. Have the employee acknowledge receipt in writing. Ensure the handbook complies with Hawaii's specific employment laws, including the Hawaii Family Leave Law, which provides up to 4 weeks of family leave per year for employers with 100+ employees.

Display all required federal and Hawaii-specific workplace posters in a conspicuous location. These include posters on minimum wage, equal employment opportunity, workplace safety, unemployment insurance, workers' compensation, and Hawaii-specific posters like the Wage and Hour Law poster and Whistleblower Protection Act poster.

Hawaii law requires employers to notify employees in writing of their rate of pay, regular payday, and overtime policies at the time of hiring. This can be included in the offer letter or employment contract.

Ensure your workers' compensation insurance covers the new employee. Hawaii law requires all employers to have workers' compensation insurance, regardless of the number of employees or hours worked.

Provide orientation on company policies, procedures, safety protocols, and job responsibilities. Review the employee handbook and answer any questions. Document the orientation process.