Hawaii Gov. Josh Green has signed a pay transparency bill into law. SB 1057, which goes into effect on Jan. 1, 2024, will require Hawaii employers with at least 50 employees to disclose an hourly rate or salary range that reasonably reflects the actual expected compensation on job listings.
The disclosure requirement excludes internal transfers or promotions within a current employer, as well as public employee positions for which salary, benefits, or other compensation are determined pursuant to collective bargaining. Hawaii’s law does not define expected compensation and does not require disclosure of other components of total compensation, such as benefits, as other state laws require.
The law does not specify whether the 50-employee threshold refers to nationally or within the state. Generally, the pay transparency laws that are already in effect in many states across the country, including California, Colorado, and soon New York State, apply to employers with as few as one employee within the state and as many as 15 employees nationwide. Here, Hawaii appears to be taking a different approach.
Pay transparency laws are moving quickly — and are varied. Employers should consider how to deal with this complex patchwork of state salary transparency laws. Some employers may prefer a single, national approach geared to the most rigorous of the laws. Others may choose to include specific disclosures tailored to each jurisdiction. Whatever your preference, employers should consult with counsel to understand the legal risks and practical complications that their desired approach to these pay transparency laws may create.
Laura A. Mitchell, Christopher T. Patrick, Richard I. Greenberg and Jennifer Ellerkamp are attorneys with Jackson Lewis. © 2023. All rights reserved. Reprinted with permission.
