?Hawaii lawmakers recently passed a bill that would require employers to disclose hourly pay rates or salaries in job listings and expand pay discrimination protections, which could make the Aloha State the latest state to enact a pay transparency law.
It’s been sent to Gov. Josh Green. If enacted, the bill would become effective on Jan. 1, 2024.
The bill’s stated purpose is to “reduce pay inequalities” by increasing pay transparency and prohibiting pay discrimination for substantially similar work. Specifically, the bill would require employers to “disclose an hourly rate or salary range that reasonably reflects the actual expected compensation” in listings for job openings.
The disclosure requirements would not apply to three situations:
- Internal transfers or promotions within an employer.
- Public employee positions for which salary, benefits, or other compensation are determined pursuant to collective bargaining.
- Positions with employers that have fewer than 50 employees.
The bill would prohibit employers from discriminating against employees based on “any protected category” established by state law, not based just on “sex,” by paying such employees less for “substantially similar work.”
Next Steps
The Hawaii bill would add the Aloha State to the growing list of states and localities with pay transparency laws, including California, Colorado, New York State, Washington, and New York City—that require employers to disclose wage ranges in job postings.
If the bill is signed, employers in Hawaii may want to review their policies surrounding job advertisements in light of the pay disclosures the new bill would require.
Note that, unlike some other pay transparency laws, the Hawaii bill would not require disclosure of expected pay for internal transfers or promotions. Employers need not consider these situations if preparing for compliance.
Kelly M. Cardin and Zachary V. Zagger are attorneys with Ogletree Deakins in New York City. Nicole S. Mulé is an attorney with Ogletree Deakins in Stamford, Conn. © 2023. All rights reserved. Reprinted with permission.
