On July 3, 2023, Hawaii became the latest state to embrace pay transparency and equal pay measures with the enactment of SB 1057. Hawaii now requires most job listings to disclose the hourly rate or salary range that “reasonably reflects the actual expected compensation” for the advertised position. This legislation aims to enhance pay transparency and promote equal pay for all employees. Hawaii joins California, Colorado, Connecticut, Maryland, Nevada, Rhode Island, New York (starting September 17, 2023), and Washington, requiring pay ranges disclosed on job postings. Illinois will become the 10th state with pay transparency laws on January 1, 2025.
The scope of the posting requirements encompasses most job advertisements. However, Hawaii’s law states specific exceptions where the law does not apply that differ from most states. These exemptions include job listings for positions that involve internal transfers or promotions within the current employer, public employee positions governed by collective bargaining agreements, and positions with employers that have fewer than 50 employees. In addition, Hawaii’s new law does not require posting other compensation like benefits.
In addition to promoting pay transparency, SB 1057 expands Hawaii’s existing equal pay requirements. The legislation prohibits employers from paying employees in any protected category less than other employees within the establishment for “substantially similar work” or “equal work.” These protected categories encompass various aspects such as 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. The term “substantially similar work” refers to work performed under similar conditions requiring equal skill, effort, and responsibility.
Effective January 1, 2024, employers in Hawaii must prepare for the new requirements by ensuring that their human resources and compensation departments, as well as any third-party job posting platforms they use, are prepared to comply with the regulations.
*This information simplifies complex Acts as Time Equipment Company understands it. It is not to be taken as legal advice. The regulations for this program are changing. For further information, contact your state or local Department of Labor.
