Hawaii Wage Payment Laws
- Frequency of wage payments
- Manner of wage payments
- Direct deposit
- Payment upon separation from employment
- Wage in dispute
- Deductions from wages
- Uniforms, tools, and other equipment necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of wage reduction
- Statement of wages (pay stubs)
- Record keeping requirements
- Notice requirements
Frequency of Wage Payments
An employer must all wages due to the employer’s employees at least twice per month, on regular paydays designated in advance by the employer. The earned wages of all employees shall be due and payable within seven days after the end of each pay period.
The Hawaii Department of Labor may, upon application showing good and sufficient reasons, permit an employer to:
- Establish regular paydays less frequently than semimonthly provided that the employee shall be paid in full at least once per month on a regularly established schedule;
- Pay earned wages within fifteen days after the end of each pay period.
A majority of an employer’s employees or a majority of the employees in a collective bargaining unit recognized by an employer or established by law may elect, in a secret ballot election approved by the Hawaii Department of Labor, to be paid once a month on a regularly scheduled basis. The elections shall not be held more frequently than once in every two years and each election shall be valid for a period of two years.
Manner of Wage Payments
An employer may pay employees by cash or check payable on demand without deduction or fee. Hawaii Stat. 388-2. The law does not indicate whether a employer can lawfully pay employees by direct deposit, however, there are employers in Hawaii who do so.
The law does not indicate whether an employer can lawfully pay employees by direct deposit, however, there are employers in Hawaii who do so. It is uncertain whether an employer may lawfully require an employee to be paid by way of direct deposit.
Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or permanently laid off
An employer must pay an employee who is discharged their wages in full at the time of discharge. If circumstances prevent an employer from paying a discharged employee immediately, the employer must pay the employee their wages in full no later than the workday following the discharge. Hawaii Stat. 388-3
If an employer has a policy requiring employees to give advanced notice of their intent to quit and an employee gives the required notice, an employer cannot terminate the employee, except for cause, during the notice period to avoid paying wages for that time. An employer must pay the employee the anticipated wages of the entire notice period if the employee has given the required notice, unless the employee voluntarily quits or is terminated for cause prior to the last day of the notice period. Hawaii Stat. 388-41
Employees who quit or resign
An employer must pay an employee who quits or resigns their wages in full no later than the next regular payday, if the employee does not give notice of their intent to quit more than one pay period in advance. If an employee gives more than one pay period”™s notice, the employer must pay the employee their wages in full at the time of quitting. An employee can request the employer send their final pay check through the mail, but if no such request is made, the employer may pay the employee through the regular pay channels. Hawaii Stat. 388-3
Employees who are suspended or resigns due to a labor dispute (strike)
An employer must pay an employee who is suspended due to a labor dispute wages in full not later than their next regular payday. An employee can request the employer send their final pay check through the mail, but if no such request is made, the employer may pay the employee through the regular pay channels. Hawaii Stat. 388-3
Employees who are temporarily laid off
An employer must pay an employee who are temporarily laid off their wages in full not later than their next regular payday. An employee can request the employer send their final pay check through the mail, but if no such request is made, the employer may pay the employee through the regular pay channels. Hawaii Stat. 388-3
Wages in Dispute
In case of a dispute between an employer and employee as to the amount of wages due, the employer must timely pay, without condition, all wages, or parts thereof, conceded by the employer to be due, leaving to the employee all remedies the employee might otherwise be entitled. The acceptance by an employee of a payment under this section does not constitute a release with respect to the disputed amount and any release required by an employer as a condition to payment shall be is null and void. Hawaii Stat. 388-5
Deductions from Wages
An employer can only make deductions from an employee”™s paycheck when authorized by federal or state laws, such as taxes and garnishments, or with the written consent of the employee. An employer cannot deduct from an employee”™s paycheck the following items, even with written consent from the employee:
- cash shortages from a common money till, cash box or register used by two or more people;
- cash shortages from a money till, cash box, or register under control of a single employee if the employee is not given an opportunity to account for all money received at the start of a shift and all money turned in at the end of a shift;
- cost for breakage;
- losses due to accepting a bad check if the employee is given discretion to accept or reject checks;
- losses due to:
- faulty workmanship,
- lost or stolen property,
- damage to property,
- default of customer credit,
- nonpayment for goods or services received by customers if such losses are not attributable to the employee”™s willful or intentional disregard of employer”™s interests;
- medical or physical examination or medical report expenses of an employee or prospective employee required by the employer or by law.
Uniforms, Tools, and Other Equipment Necessary for Employment
Hawaii does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment. However, an employer would be required to have the signed consent of the employee to deduct the cost of the items from the employee’s wages.
Pre-hire Medical, Physical, or Drug Tests
An employer may not require an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment. Hawaii Stat. 388-6
Notice of Wage Reduction
An employer must notify an employee in writing or by posting in an accessible place of any changes to their wage rate or the day, hour, and/or place of payment. Hawaii Stat. 388-7
Statement of Wages (Pay Stub)
An employer must furnish each employee at every pay period a legible printed, typewritten, or handwritten notice showing the employee’s:
- total hours worked;
- overtime hours;
- straight-time compensation;
- overtime compensation;
- other compensation;
- total gross compensation;
- amount and purpose of each deduction;
- total net compensation;
- date of payment; and
- pay period covered.
An employer may provide, with written consent of the employee, an electronic notice of the foregoing items that may be electronically accessed by the employee.
Record Keeping Requirements
An employer must maintain and keep for a minimum of six years in or about the premises where any employee is employed, records in English containing the following information on each employee:
- name in full, social security number, or identifying symbol or number used in place of or in addition to a name on any record;
- home address;
- date of birth, if under nineteen;
- occupation in which employed;
- rate of pay and length of pay period;
- hours worked each workday and total hours worked each workweek;
- total daily or weekly straight-time wages;
- total weekly overtime wages;
- the amount and purpose of additions to or deductions from wages paid each pay period;
- total wages paid each pay period, date of payment, and pay period covered;
- date of hire; and
- date of termination.
An employer must maintain and preserve a copy of the records provided to employees on payday records or their equivalent for a minimum of six (6) years. Hawaii Stat. 388-7
An employer must:
- notify each new employee in writing their rate of pay and the day, hour, and place of payment, and
- provide to each employee in writing or by accessible posting policies regarding vacation and/or sick leave.