Hawaii Salary Transparency Law (SB 1057): Complete Employer Guide

Overview of SB 1057

Senate Bill 1057, effective January 1, 2024, establishes the Hawaii salary transparency law, mandating pay transparency in job postings to promote equitable compensation across the state.

The law requires employers to be upfront about the compensation they expect to provide for a specific role.

• Include an hourly rate or salary range in all external and internal job postings
• Ensure the compensation listed reflects the employer's good-faith estimate
• Align hiring practices with fair pay principles

This guide dives into the specific requirements so your recruitment process stays compliant with the Hawaii salary transparency law.

Who Must Comply?

Important: The 50-employee threshold is critical. If you have 50 or more employees, any job posting for a role situated in Hawaii falls under the Hawaii salary transparency law.

Requirements: What Must Be Included in Job Postings?

Under the Hawaii salary transparency law, employers must provide:

• Hourly rate or salary range: The compensation reasonably expected to be paid for the position.
• The range must be a good-faith estimate and reflect what the employer genuinely intends to pay.

Note: The law specifically mentions the hourly rate or salary range. It does not strictly mandate the inclusion of other compensation like bonuses, stock options, or benefits, but being transparent about the core salary is mandatory.

Example: Compliant vs Non-Compliant

What About Remote Work?

The Hawaii salary transparency law's application to remote work primarily hinges on whether the remote position is tied to Hawaii or could be filled by a resident. If a company with 50+ employees posts a remote job that is open to Hawaii applicants or is based in the state, the safest approach is to include the salary range.

As state laws expand, remote job postings that target applicants nationwide generally need to adhere to the strictest applicable transparency laws to ensure broad compliance.

👉 Read our full guide on remote job salary disclosure

Penalties for Non-Compliance

Failing to adhere to the Hawaii salary transparency law carries specific financial penalties:

Consistent compliance is key, as multiple non-compliant job postings can lead to compounding fines.

👉 See our complete penalties guide

How to Comply

To ensure you meet the requirements of the Hawaii salary transparency law, consider these steps:

• Audit Job Postings: Review all current and upcoming job descriptions for roles in Hawaii or remote roles accepting Hawaii candidates.
• Establish Salary Ranges: Work with HR to define good-faith salary ranges based on market data and internal equity.
• Train Hiring Teams: Ensure recruiters and hiring managers understand the requirements and the importance of including pay ranges everywhere the job is listed.
• Monitor Updates: Keep an eye on guidance from the Hawaii Department of Labor and Industrial Relations for any changes.

Who This Applies To Summary