Hawaii Labor Law Guide 2026: Wages, Overtime, Health Care, and Final Pay

Hawaii's employment law is shaped by a service economy, a high cost of living, and one statute no other state has: the Prepaid Health Care Act, which requires employers to provide health insurance to nearly every employee working 20 or more hours a week. The Department of Labor and Industrial Relations enforces the Wage and Hour Law through its Wage Standards Division and administers the health care mandate through the Disability Compensation Division. The minimum wage is on a statutory climb to $18.00 by 2028.

Minimum Wage in Hawaii

Hawaii's minimum wage is $16.00 per hour, effective January 1, 2026, under the schedule the legislature adopted in 2022: $12.00 in 2022, $14.00 in 2024, $16.00 in 2026, and $18.00 on January 1, 2028. Hawaii allows a tip credit of only $1.25 an hour, and only when the employee's cash wage plus tips is at least $7.00 above the minimum wage. In practice most tipped workers receive the full $16.00.

Employees who earn guaranteed compensation of $4,000 or more per month in certain roles are, in the Department's words, "exempt from the minimum wage, overtime, and record keeping provisions" of the state law. There are no county minimum wages. See the Hawaii minimum wage guide for the schedule, the tip credit math, and coverage details.

Overtime Rules

Hawaii requires overtime at 1.5 times the regular rate for hours over 40 in a workweek. The Department's FAQ confirms that daily hours "exceeding 8 are not overtime except for public works projects." There is no seventh-day rule.

Worked example at the minimum wage: an employee at $16.00 who works 45 hours earns $640.00 for 40 hours plus $120.00 for 5 overtime hours at $24.00, or $760.00 gross. Use the overtime calculator for other rates. Hawaii allows compensatory time only for salaried employees, used within the same pay period and accrued at 1.5 hours per overtime hour, a narrow rule most employers avoid. Our overtime pay laws in the US guide covers the regular-rate calculation.

Exempt employees follow the state's exemption list, which parallels the federal categories, plus the $4,000 per month guaranteed compensation exemption. The federal $684 per week floor applies to FLSA-covered employers.

Meal and Rest Breaks

Hawaii does not require meal or rest breaks for adult employees. The Department's FAQ notes there is no state law requiring a minimum number of hours between shifts either. The one break mandate covers younger workers.

Break type	Requirement	Applies to
Meal break	Not required by state law	Employees 16 and older
Rest break	Not required by state law	Employees 16 and older
Minor's break	At least 30 minutes after 5 consecutive hours of work	Employees 14 and 15
Paid vs unpaid	If an employee works through a break, "the employer is required to compensate the employee for the time as hours worked"	All employees

The rest and meal break laws by state guide and the break time calculator help build a consistent policy.

Paid Sick Leave and Other Leave

Hawaii has no general paid sick leave mandate, but its leave and benefits laws are more extensive than most states because of the Prepaid Health Care Act, Temporary Disability Insurance, and the Hawaii Family Leave Law.

Leave or benefit	Hawaii rule
Paid sick leave	Not required by statute
Health insurance	Prepaid Health Care Act: required for employees working 20 or more hours a week after 4 consecutive weeks who earn at least 86.67 times the minimum wage a month; the employee's share cannot exceed the lesser of half the premium or 1.5 percent of monthly wages
Temporary Disability Insurance	Employers must provide partial wage replacement for non-work-related illness or injury, funded by employer and up to a capped employee contribution
Family leave	Hawaii Family Leave Law: 4 weeks of unpaid leave per year for birth, adoption, or care of a family member at employers with 100 or more employees, in addition to federal FMLA
Jury duty	Employers may not discharge an employee for jury service; unpaid
Voting	Up to 2 hours of paid leave if the employee does not have 2 consecutive non-working hours while polls are open
Domestic violence	Up to 30 days of unpaid leave at employers with 50 or more employees, 5 days at smaller employers
Military	Federal USERRA plus state protection

Paid family leave has been debated in the legislature for several sessions without passing as of September 2026. See paid sick leave laws in the US and jury duty laws in the US for the multi-state comparison.

PTO Payout and Final Paychecks

Hawaii's Wage Standards Division applies Hawaii Revised Statutes 388-3. When an employer discharges an employee, wages are due in full at the time of discharge or not later than the next working day. When an employee quits, wages are due by the next regular payday, except that an employee who gives at least one pay period's notice must be paid at the time of quitting. Employers that miss the deadline can face penalties and interest, and wilful violations are misdemeanors.

Vacation and PTO payout depends on the employer's policy. Hawaii's wage law does not require payout of accrued vacation, and a written policy that says unused time is forfeited at separation is generally enforceable. See PTO payout laws by state.

Pay frequency: employers must pay at least twice a month on regular paydays within 7 days after the end of the pay period, though the Director can approve monthly pay for some employers. Deductions beyond taxes and court orders require written authorization, and employers cannot deduct for shortages, breakage, or damage.

Exempt vs Non-Exempt Employees

Hawaii's exemptions include the federal white-collar categories plus state-specific ones such as the $4,000 per month guaranteed compensation exemption, agricultural workers on small farms, and certain domestic and seasonal workers. Federal FLSA tests apply concurrently for covered employers. Our exempt vs non-exempt employees guide and the FLSA exemption flowchart cover the federal analysis; confirm the state exemptions with the Wage Standards Division for roles that rely on them.

Child Labor Rules

Hawaii's Child Labor Law requires a certificate for every working minor until age 18: a Certificate of Employment (form CL-1) for 14 and 15 year olds and a Certificate of Age (eCL-3) for 16 and 17 year olds, issued by the Wage Standards Division.

Age group	School days	Non-school days	Hours of day	Other rules
14 and 15	3 hours a day, 18 hours a week	8 hours a day, 40 hours a week	7 AM to 7 PM on school days; 6 AM to 9 PM on non-school days	30-minute break after 5 consecutive hours; Certificate of Employment required
16 and 17	No hour limits except when required to be in school	No limits	No restriction	Certificate of Age required; barred from hazardous occupations
Under 14	Not permitted except entertainment, newspaper delivery, and limited exceptions

See child labor laws in the US for the federal rules that apply alongside Hawaii's.

Other Hawaii Employment Rules

• Prepaid Health Care Act. Coverage begins "after four (4) consecutive weeks of employment or the earliest time thereafter at which coverage can be provided," and employees may waive it with Form HC-5 if covered elsewhere, for example through a spouse's plan.
• Temporary Disability Insurance. Employers must provide TDI coverage through an insurer or an approved self-insured plan for employees who have worked 14 weeks and at least 20 hours a week.
• Pay transparency. Since 2024, employers with 50 or more employees must include the hourly rate or salary range in job postings, and salary history questions are prohibited.
• Lactation. Employers must provide reasonable break time and a private location other than a restroom.
• Record retention. The Department requires payroll records "for at least six years," longer than the federal 3-year rule.
• Whistleblower protection. The Hawaii Whistleblowers' Protection Act bars retaliation for reporting suspected legal violations.

Hiring, Termination, and Record-Keeping

Hawaii is an at-will state. The Hawaii Civil Rights Commission enforces the state's anti-discrimination law, which covers employers with one or more employees and protects more classes than federal law, including sexual orientation, gender identity, arrest and court record, and credit history. Employers must also register new hires with the Department of Labor and Industrial Relations for TDI and health care purposes.

Keep records of hours worked, wages, and deductions for six years, plus child labor certificates for minors. Post the state Wage and Hour Law poster, the Prepaid Health Care and TDI notices, the unemployment and workers' compensation notices, and the federal posters. Hours-worked data matters more in Hawaii than elsewhere because the 20-hour weekly threshold for health coverage is measured from actual hours; a time card calculator with a written timekeeping policy provides the record.

Frequently Asked Questions

Is Hawaii an at-will state? Yes, subject to one of the broadest state anti-discrimination laws in the country and to whistleblower protections.

Does Hawaii require lunch breaks? Not for employees 16 and older. 14 and 15 year olds must get at least 30 minutes after 5 consecutive hours.

When is the final paycheck due in Hawaii? At discharge or by the next working day when the employer ends employment; by the next regular payday when the employee quits, or immediately if the employee gave a full pay period's notice.

Does Hawaii require employers to provide health insurance? Yes. The Prepaid Health Care Act requires coverage for employees who work 20 or more hours a week for four consecutive weeks and earn at least 86.67 times the minimum wage a month.

Does Hawaii have paid sick leave? No statutory paid sick leave, but employers must provide Temporary Disability Insurance for non-work-related illness and injury.

How many hours can a minor work in Hawaii? 14 and 15 year olds can work 3 hours on a school day and 18 in a school week, or 8 hours a day and 40 a week when school is out. 16 and 17 year olds have no hour limits outside school hours.

When does Hawaii's minimum wage reach $18? January 1, 2028, the final step of the 2022 schedule.

How long must Hawaii employers keep payroll records? At least six years.

Sources

• Hawaii Wage Standards Division: Wage and Hour FAQs
• Hawaii Wage Standards Division: Child Labor
• Hawaii Wage Standards Division: Unpaid Wages
• Hawaii Disability Compensation Division: About Prepaid Health Care
• US Department of Labor: State Minimum Wage Laws