Hawaii Overtime Laws

Hawaii labor law encompasses a comprehensive set of regulations that govern various aspects of employment, including overtime pay. Under these laws, specific provisions are in place to ensure that employees in Hawaii are fairly compensated for working beyond their regular hours.

This article will provide information to help employees and employers successfully navigate Hawaii’s overtime laws to ensure compliance.

Hawaii Overtime Laws Summary

This Article Covers

• Overtime Pay Rates in Hawaii
• Who is Entitled to Overtime Pay in Hawaii?
• Overtime Exemptions in Hawaii
• Is Compensatory Time Allowed in Hawaii?
• Overtime Pay for Tipped Employees in Hawaii
• Overtime Pay for Salaried Employees in Hawaii
• Recordkeeping Requirements for Employers in Hawaii
• Penalties for Violating Overtime Laws in Hawaii

Overtime Pay Rates in Hawaii

Employees in Hawaii must receive overtime pay when they work more than 40 hours in a workweek. Overtime is paid at 1.5 times the employee’s regular rate of pay.

The “regular rate” isn’t limited to an hourly wage. It can also include salary, commissions, bonuses, or piece-rate earnings. Employers must add up all forms of compensation and calculate the average hourly rate to ensure overtime is paid correctly.

Since Hawaii’s minimum wage is $16 per hour, the lowest possible overtime rate is $24 per hour. For employees earning above minimum wage, overtime pay is calculated at 1.5 times their regular rate.

Example:

Employee’s regular rate of pay: $20 per hour

Overtime rate: 1.5 x $20 = $30 per hour

Learn more about your overtime rights in Hawaii in our detailed article.

Who is Entitled to Overtime Pay in Hawaii?

Most employees in Hawaii are entitled to overtime pay if they work more than 40 hours in a workweek, regardless of how they are paid (hourly, salary, commission, or piece rate) under Hawaii’s overtime laws. Overtime is paid at 1.5 times their regular rate of pay.

Certain state or county public construction workers (on project contracts over $2000) in Hawaii are entitled to overtime pay after eight hours in a single day, and for all hours worked on weekends (Saturdays, Sundays) and state holidays, regardless of weekly totals.

Overtime pay rates for these employees follow the applicable collective bargaining agreement, but the base rate must be at least the prevailing wage.

Overtime Exemptions in Hawaii

Some employers and employees are exempt from Hawaii’s overtime laws, including:

• High-earning employees who earn a guaranteed salary of $4,000 or more per month (whether paid weekly, biweekly, or monthly)
• White-collar employees working in executive, administrative, supervisory, professional, outside sales, or outside collector roles may also be exempt if they meet certain criteria
• Agricultural workers involved in small or specific activities, such as those working with fewer than 20 employees in a workweek or those involved in coffee harvesting
• Seasonal agricultural and processing employers engaged in dairy products, sugarcane, poultry, livestock, or seasonal fruits may choose up to 20 workweeks per year, where overtime applies only after 48 hours instead of 40
• Air carrier employees covered by the federal Railway Labor Act may be exempt from overtime if extra hours result from voluntary agreements to swap shifts or days off
• Live-in domestic help and companions for the elderly
• Employees working for family members such as parents, spouse, child, or in-laws
• Employees in non-profit and charitable roles
• Fishing and maritime workers
• Certain transportation and service providers, such as on-call passenger vehicle drivers
• Automobile sales employees in licensed dealerships

Is Compensatory Time Allowed in Hawaii?

Hawaii law does not officially provide for compensatory time (comp time) instead of overtime pay. However, it may be allowed in limited situations under certain conditions:

• Only for salaried employees: Comp time can be used only for employees who are paid on a salary basis.
• Same pay period rule: The employee must take the comp time off within the same pay period in which the overtime was worked.
• Time-and-a-half rate: Comp time must be earned at 1.5 hours for every overtime hour worked, just like overtime pay.

In simple terms, comp time is not a general substitute for overtime pay in Hawaii, but employers may offer it in very limited cases if these rules are followed.

Overtime Pay for Tipped Employees in Hawaii

In Hawaii, employers can pay tipped employees less than minimum wage if certain conditions are met. To qualify, the employee must regularly earn more than $20 per month in tips, and their total earnings (wages + tips) must be at least $7 more than the minimum wage. Since Hawaii’s minimum wage is $16 per hour, a tipped employee’s total earnings must equal or exceed $23 per hour ($16 + $7).

Under these conditions, tipped employees can be paid a minimum cash wage of $14.75 per hour, with employers retaining a tip credit of $1.25 per hour. Employers can pay a lower direct wage, but only if the employee’s tips make up the difference and bring total hourly earnings to the required level.

Tipped employees in Hawaii must be paid overtime at 1.5 times the full minimum wage, not the lower cash wage, for any hours worked over 40 in a workweek.

Employers may apply the same tip credit used for regular hours, but they cannot increase the tip credit for overtime hours or reduce pay below the required overtime rate.

Additionally, employers are not allowed to keep employees’ tips or share them with managers or supervisors. Tip pooling is only allowed if it includes employees who regularly receive tips. These rules ensure tipped workers receive fair wages and proper overtime pay.

Learn how to calculate overtime pay for tipped employees in Hawaii.

Overtime Pay for Salaried Employees in Hawaii

A salaried employee in Hawaii is someone who is paid a fixed, predetermined amount each pay period (weekly, biweekly, semi-monthly, or monthly), regardless of the number of hours worked. This salary does not include extras like the cost of meals, lodging, or other facilities provided by the employer.

In Hawaii, salaried employees must receive 1.5 times their regular hourly rate for any hours worked over 40 in a workweek.

To determine overtime pay, an employee’s salary must first be converted into an hourly rate based on a 40-hour workweek:

• Weekly salary: Divide the weekly salary by 40
• Biweekly salary: Divide the biweekly salary by 2, then divide by 40
• Semi-monthly salary: Multiply the salary by 24, divide by 52, then divide by 40
• Monthly salary: Multiply the salary by 12, divide by 52, then divide by 40

If the employer provides board, lodging, or similar benefits, their reasonable cost is included in these calculations. If an employee performs multiple types of work for the same employer, all earnings are combined and treated as if earned for one type of work when calculating the regular rate.

It is important to note that employees who earn a guaranteed salary of $4,000 or more per month and those employed in certain positions are exempt from overtime laws in Hawaii.

Both employers and employees in Hawaii can easily calculate overtime pay using our overtime calculator. Simply enter the employee’s salary and total hours worked to get accurate results in seconds.

Recordkeeping Requirements for Employers in Hawaii

Employers in Hawaii are required to maintain employee records for at least six years. These records must include essential details such as the employee’s name, address, Social Security number, job role, and rate of pay.

In addition, employers must maintain accurate records of hours worked each day and each workweek, which are critical for calculating regular and overtime earnings. With this data, employers can clearly show how overtime compensation was determined.

Any additions to or deductions from wages (along with their purpose) must also be recorded.

Payroll records should reflect total wages paid during each pay period, the dates of payment, and the period covered. Employers are also required to track key employment dates, including the employee’s hire and termination dates.

Using a time tracking tool like Jibble can make recordkeeping significantly easier and more accurate. It automatically tracks employee hours, breaks, and overtime in real time. Features like automated reporting, GPS-based time tracking, and payroll-ready records help ensure accurate overtime calculations while reducing manual errors and administrative workload.

Penalties for Violating Overtime Laws in Hawaii

Employers in Hawaii face serious consequences for failing to pay proper wages, including overtime. Employers can be required to pay unpaid wages, plus an equal amount in damages (double pay) and 6% annual interest calculated from the date the wages were due.

In addition, employers may face civil penalties of at least $500, or $100 per violation, whichever is higher.

Employees have the right to file wage complaints with the Hawaii Wage Standards Division (individually or as a group) to recover unpaid wages. If they win, employers must also cover attorney fees and court costs. The state labor department can step in and pursue legal action on behalf of employees.

Willful or serious violations can lead to criminal charges, including fines ranging from $500 to $5,000, up to one year in jail, or both. Employers who knowingly underpay wages may face felony charges, with additional fines of at least $500 per violation.

Employers are prohibited from retaliating against employees who file wage complaints or participate in investigations or lawsuits. Doing so can lead to additional criminal penalties.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.