Compliance Watch:

What are my rights as a salaried employee in Hawaii?

In Hawaii, a salaried worker is defined as an individual who regularly receives a predetermined salary from their employer. Employers in Hawaii are obligated to provide payment to their salaried staff on a weekly, biweekly, or monthly basis, regardless of the number of hours they put in each week.

The classification of salaried employment in Hawaii is dependent upon overtime eligibility. Some salaried employees are exempt from receiving overtime compensation. These particular employees, which include professionals, executives, and administrative personnel, are not entitled to overtime pay and will receive the same salary, even if they surpass 40 hours of work within a single work week. Conversely, non-exempt employees in Hawaii have the opportunity to receive overtime pay for any hours worked beyond the 40-hour threshold in a given workweek.

If you’d like to know more about Hawaii labor laws,  you can access our guides on your rights as an hourly employee and salaried employee laws.

It’s  crucial for employees to grasp a deep understanding of Hawaii salaried employees laws. Salaried employees in Hawaii get to enjoy basic rights to use as a safeguard in the workplace. These rights include:

• Safety and Health: Employees have the right to a safe workplace under Hawaii’s state safety program (HIOSH), with aligned federal regulations.
• Whistleblower Protection: Protection from retaliation when reporting violations or safety concerns to employers or public bodies.
• Background Check Privacy: Employers cannot inquire about criminal history until after a job offer is made, except when relevant to the position.
• Drug and Alcohol Testing: Employers can conduct tests using specific methods and approved labs.
• Social Media Privacy: Employers can’t request login information or alter settings but can access publicly available information and investigate workplace safety threats.
• COBRA and Health Coverage: COBRA allows continued health coverage for employees leaving their jobs or experiencing certain life events. Hawaii also has H-COBRA for specific cases.
• Recordkeeping: Employers must maintain certain records related to salaried employees, with details varying by industry and employment type.
• Pay Transparency: Employers are required to explicitly state the hourly rate or salary range for a job posting. This applies to employers with 50 or more workers.

Certain salaried employees in Hawaii might be exempt from overtime eligibility and that depends on several factors, including their salary level and job roles. Hawaii labor laws categorize them as follows:

• Salaried employees who receive a guaranteed monthly compensation of $3,376 or more are generally exempt from overtime pay requirements, regardless of their pay frequency. In other words, they are not entitled to overtime pay.
• Salaried employees engaged in bona fide executive, administrative, supervisory, or professional roles, as well as those involved in outside sales or collection activities, are also exempt from overtime pay requirements.

Additionally, it’s important to note that some agricultural employers in Hawaii may not be required to pay overtime compensation for specific workweeks during the year. This exemption applies to employers involved in agricultural activities like processing dairy products, sugar cane, agricultural or horticultural commodities, poultry or livestock handling. It also includes employers in agriculture whose products are processed by an employer involved in seasonal pursuits or processing, canning, or packing operations, and those primarily engaged in the initial processing, canning, or packing of seasonal fresh fruits. For a comprehensive understanding of this topic, you can access our guide on Hawaii overtime laws.

No. Employers cannot deduct or require payment from employees’ earnings except as mandated by law or with written consent. Certain deductions are strictly prohibited. These deductions are:

• Fines: Employers are not allowed to fine employees.
• Cash Shortages: Deductions for cash shortages are only allowed if employees can account for funds.
• Breakage Costs: Deductions for breakage are not allowed.
• Dishonored Checks: Deductions for checks dishonored after being accepted by employees are not allowed.
• Various Losses: Deductions for losses due to various reasons are prohibited unless not caused by employee misconduct.
• Medical Expenses: Employers can’t require employees to pay for medical examinations or reports, except as required by law or regulation.

Employees in Hawaii are not entitled to regular employee breaks. However, minors aged 14 and 15 are allowed a 30-minute break every 5 hours of work. If an employer does decide to provide breaks, when an employee works through a 30-minute lunch break, the hours must be counted as part of a work day. 

In Hawaii, salaried employees have access to various types of leave based on state and federal regulations. These include:

• Paid Sick Leave: It is compulsory to provide paid sick leave to employees. The leave is accrued at one hour for every 40 hours worked. 
• Family Leave: Employers with a workforce of at least 100 employees in Hawaii must extend paid or unpaid family leave to employees who have completed a minimum of 6 months of service. Additionally, the Federal Family and Medical Leave Act permits up to 12 weeks of family leave for various reasons.
• Jury Duty Leave: Employers are not compelled to provide compensation for jury duty leave. Nevertheless, they cannot take adverse actions against employees for taking this leave, and any payments received from the government for jury duty are not regarded as part of an employee’s regular salary.
• Paid Voting Time: Employers must allocate 2 hours of paid time off for employees to vote, specifically between 7 a.m. and 6 p.m. Exceptions apply for employees whose work schedules already encompass this time frame (9 a.m. to 5 p.m.), enabling them to vote without requiring additional time off.
• Leave for Domestic Violence or Sexual Assault Victims: Employees at companies with 50 or more employees are entitled to a maximum of 30 days of unpaid leave if they or their underage child have experienced domestic or sexual abuse. Smaller companies are mandated to offer 5 days of unpaid leave for similar circumstances.
• Emergency Response Leave: In the event of a level 3 or higher disaster, declared a state of emergency by both the US President and the Governor, state employees may receive up to 30 days of paid leave for their contributions to the American Red Cross.
• Leave for Organ and Bone Marrow Donation: Employers are required to grant paid leave for employees donating bone marrow, up to a maximum of 7 days, and for organ donation, up to 30 days.
• Military Leave: Employers must approve military leave for National Guard employees in Hawaii, following the federal Uniformed Services Employment and Reemployment Rights Act (USERRA).

In the state of Hawaii, there exist established policies and protocols designed to facilitate adaptable work schedules for both part-time and full-time employees working in the public sector.

The objective of these measures is to enhance the efficiency and effectiveness of the services rendered to the public. The responsibility of formulating a well-suited plan for flexible working hours lies with program managers and department heads, who are tasked with evaluating the specific requirements of their respective organizations.

In Hawaii, the term “exempt” pertains to the classification of certain employees who are exempt from specific labor regulations, particularly those related to overtime pay and other related provisions.

Exempt employees in Hawaii, much like in the majority of U.S. states, are typically salaried employees who are exempt from overtime regulations as defined by the Fair Labor Standards Act (FLSA).

The implications and advantages of this exempt status in Hawaii include:

• Salary Cap: While a guaranteed minimum salary is provided, the potential for significant income growth over time may be limited, in contrast to roles with variable compensation structures like hourly wages or commissions.
• High Stress and Responsibility: With autonomy and authority come increased responsibilities, which can potentially lead to high levels of workplace pressure and stress.
• Limited Job Autonomy and Responsibility: Exempt positions may come with less decision-making authority and reduced responsibilities, limiting employees’ opportunities to take on leadership roles and have a significant impact on their organizations.
• Benefits and Perks: Exempt employees often have access to a broader range of benefits such as health insurance, retirement plans, and paid time off, enhancing their overall compensation and well-being.
• Job Security and Legal Protections: Exempt status typically provides stronger legal protections, ensuring job security and offering safeguards in cases of workplace disputes, discrimination, or wrongful termination.
• Professional Growth: Employers may invest in the professional development of exempt employees through training and educational opportunities, allowing them to enhance their skills and advance in their careers.
• Minimum Salary Guarantee: Exempt employees in Hawaii are typically guaranteed a minimum salary per FLSA standards, providing financial security and ensuring a baseline income level.

To determine whether you fall under the category of an exempt or non-exempt worker in Hawaii, it is crucial to follow the guidelines outlined in the Fair Labor Standards Act (FLSA):

• Examination of Salary Threshold: If your monthly earnings exceed $3,376 you may qualify for an exempt status.
• Assessment of Salary Basis: If you receive a fixed minimum payment irrespective of the hours worked, you could potentially meet the criteria for being considered an exempt employee.
• Evaluation of Job Responsibilities: To be eligible for exempt status, you must satisfy the requirements of the first two criteria and also hold a position that falls within the exempt job categories. These responsibilities may encompass duties like supervising administrative tasks, regularly overseeing two or more employees, engaging in professional work that demands specific education, and making substantial decisions based on your judgment.

In Hawaii, the current minimum wage for adult employees stands at $14 per hour. Employees who are under the age of 20 may be paid a subminimum wage of $4.25 for the initial 90 days of their employment.

Meanwhile, full-time high school or college student workers have the right to receive a minimum wage of $11.9 per hour, not less than 85% of the regular minimum wage, provided they work up to 20 hours per week. Lastly, tipped employees are entitled to receive a minimum wage of $12.75 per hour.

In Hawaii, individuals working more than 40 hours per week qualify for a compensation rate equal to 1.5 times their regular hourly wage for each hour worked beyond this limit during a specific week.

Considering that the minimum wage in the state of Hawaii is currently set at $14 per hour, this signifies that the minimum overtime rate would amount to $21 per hour. For a deeper understanding of your overtime rights, read our detailed article on overtime rights in Hawaii.

In Hawaii, approved deductions from salaried employees generally encompass taxes like income, Social Security, and Medicare, along with deductions chosen by the employee, such as contributions to retirement plans and health insurance premiums.

Additionally, court-mandated obligations, like child support, as well as deductions for union dues when the employee is a union member, and deductions related to debts owed to the employer with the necessary legal authorization are also considered to be permissible deductions. These deductions must adhere to labor laws, refrain from lowering an employee’s salary below the minimum wage threshold, and obtain written consent from the employee.

Hawaii has implemented various laws and regulations to ensure that employees are provided with certain benefits and protections. Some of the key employee benefits and protections under Hawaii laws include:

• Employees are entitled to receive a minimum wage of $14 per hour.
• Employees who work more than 40 hours in a workweek are entitled to receive overtime pay at a rate of 1.5 times their regular hourly wage.
• Minors are allowed a 30-minute break every 5 hours of work.
• Hawaii follows the federal Family and Medical Leave Act (FMLA), which allows eligible employees to take up to 12 weeks of unpaid leave in 12 months for certain family or medical reasons.
• Employees who suffer work-related injuries or illnesses are eligible for workers’ compensation benefits, which include medical treatment and wage replacement.
• Hawaii law prohibits discrimination based on race, color, national origin, religion, sex, disability, age, and other protected characteristics. Employers are required to provide equal employment opportunities.
• Hawaii law protects employees from retaliation for reporting illegal activities or unsafe working conditions in their workplace.
• For employees who lose their jobs, health insurance coverage may be eligible to grant security under the federal COBRA law.

Employees in the state of Hawaii have the right to submit a confidential safety and health complaint and formally request an inspection by the Hawaii Occupational Safety and Health Division (HIOSH) if you suspect the presence of a significant workplace hazard or suspect that your employer is not adhering to HIOSH standards. It is advisable to initiate the complaint process promptly upon recognizing the hazard, as a duly signed complaint is more likely to trigger an on-site inspection.

Furthermore, if your employer has taken retaliatory actions against you for exercising your rights as an employee, you also have the right to file a whistleblower complaint with HIOSH. It is worth noting that employees hold the option to file complaints with both the Federal Occupational Safety and Health Administration (OSHA) and HIOSH.