Payment of Wages: Hawaii
Federal law and guidance on this subject should be reviewed together with this section.
Author: Anna Elento-Sneed, Alston Hunt Floyd & Ing
- The term wages is specifically defined in the Hawaii wage payment law. See Definition of Wages.
- Private employers must pay employees either in cash or by check. Payment of wages by direct deposit or payroll debit card is permitted under certain circumstances. Penalties are imposed for noncompliance. See Wage Payment Methods.
- All private employers must pay all wages due to their employees at least semimonthly on paydays designated in advance. Monthly payments may be permitted by the Department of Labor and Industrial Relations (DLIR). Paydays must occur no more than seven days after the end of each payroll period. Penalties are imposed for violations. See Pay Frequency.
- Hawaii law places restrictions on the types of pay deductions an employer is permitted to make. Noncompliance penalties apply. See Permitted and Prohibited Wage Deductions.
- Employers are required to provide employees with detailed written summaries of their pay (i.e. paystubs) each payday. All deductions must be itemized, by amount and purpose, and must include certain information. Electronic pay statements are permitted if certain conditions are satisfied. Penalties are imposed for violations. See Pay Statement Requirements.
- Employers must provide written notice of certain pay related information to employees when they are hired and when the information changes. See Employee Notification Requirements.
- Employers must post required notices in the workplaces. See Posting Requirements.
- Employers must keep detailed records about the employment of their workers on premises where one or more workers are employed. See Recordkeeping Requirements.
- Employees who are terminated, and those who resign with at least one payroll period's notice, must receive their final paycheck on their last day of employment. Employees who resign without giving sufficient notice may be paid on the payday following their resignation. Payment for unused vacation time must also be paid when employment ends if the employer customarily does so. Penalties are imposed for violations. See Final Pay.
- Wages owed to a deceased employee must be paid according to specific rules in order for the employer to be released from further liability. See Deceased Employee Wages.
- Wages that are unclaimed by an employee are considered abandoned after one year. Employers must notify the employee, file a report and remit the wages according to a specific procedure and keep certain records for at least five years. Civil and criminal penalties are imposed for violations. See Unclaimed Wages.
- If there is a dispute between an employer and employee over the amount of wages due, the employer must pay the wages the employer believes are due within the appropriate pay period. See Wage Disputes.