The area of salaried employment involves individuals who receive a predetermined compensation on a regular schedule, often weekly or less frequently.
This article aims to shed light on the legal framework in Hawaii that establishes the parameters for salaried employees and their employers. It encompasses areas like payment methods, breaks and time off, as well as the categorization of employees as exempt or non-exempt.
This article covers:
- Payment of Wages for Salaried Employees in Hawaii
- Salaried Employees Eligibility for Overtime for Hawaii
- Exceptions to Overtime Exemptions for Hawaii Salaried Employees
- Time Tracking of Salaried Employees Hours in Hawaii
- Violation of Salaried Employees Wages Payment in Hawaii
- Male and Female Salaried Employees in Hawaii
- Leave Entitlements for Salaried Employees in Hawaii
- Break Entitlements for Salaried Employees in Hawaii
- Deductions from Exempt Employees’ Salary in Hawaii
- Termination of Employment for Salaried Employees in Hawaii
The Hawaii Office of Labor Law states that employers are required to compensate their employees on fixed dates. Payments must be made at least twice monthly on predetermined regular paydays, and they can be given in various forms, such as cash, checks that can be converted into cash, or through direct deposit into a federally insured depository institution account or an eligible pay card. It is advisable that these paydays remain consistent and are predetermined by the employer. Furthermore, wages should be received within 7 days after the completion of each pay period.
Hawaii’s Payment of Wages and Other Compensation law outlines the guidelines regarding the timing and method of employee payments, along with the necessary documentation to accompany paychecks.
Being a salaried employee does not automatically entail exemption from receiving overtime. In order to be eligible for exemption, individuals typically need to fulfill specific criteria related to their job responsibilities and receive a salary of a certain threshold per week.
Exempt status is also not determined by job titles. To be considered exempt, an individual’s job duties and salary must satisfy all the conditions specified in the regulations set forth by the Department of Labor.
In Hawaii, certain categories of workers are not entitled to receive overtime pay. These include:
- Employees in specific fields like agriculture, livestock/poultry, dairy, sugar cane, and horticulture
- Individuals earning a minimum of $2,000 per month
- Occupations like full-time management of two or more employees, roles related to business operations, administrative training, positions requiring advanced education (such as artists and IT professionals), and outside salespeople.
Learn more about Hawaii’s Overtime Laws.
Salaried workers are paid a fixed salary regardless of their work hours, relieving them from tracking hours and allowing them to focus on tasks within reasonable timeframes. However, maintaining records and timesheets of hours can be advantageous in cases like unplanned leaves, vacations, holidays, and sick days.
Additionally, keeping track of payroll cycles and overtime hours compliance (if relevant based on company rules) can hold significance. Although not obligatory, these records offer valuable data for salaried employees concerning time off tracking and remuneration.
Learn more about US salaried and hourly employees’ time tracking.
ACT135, passed in Hawaii, enables the imposition of an administrative penalty for employers discovered to have breached Hawaii’s Payment of Wages and Other Compensation law (Chapter 388 of the Hawaii Revised Statutes (HRS).
The Hawaii Department of Labor and Industrial Relations underscores that common employer infractions of Chapter 388 encompass delayed payment of wages after a pay period’s end, failure to furnish pay statements on payday, discrepancies in hours on paychecks involving overtime, and unauthorized deductions for cash shortages, damages, or penalties.
In cases of violations, employers may be directed to pay an administrative penalty starting at $500, in addition to back pay and compensation equal to the unpaid wages along with an interest rate of six percent per annum. Reasonable attorney’s fees and costs may also be awarded against the employer.
In 2023, Hawaii introduced Senate Bill 1057, which mandates that specific job listings disclose either the hourly rate or a salary range that reasonably represents the anticipated compensation for the posted position. This initiative emphasizes pay transparency and equal pay for all employees.
SB 1057 broadens Hawaii’s existing equal pay regulations and also prohibits employers from paying employees in any protected category, such as race, sex, age, religion, etc., less than their peers in the establishment for work that is substantially similar in nature, not just identical.
It’s worth mentioning that the law permits payment variations in cases of seniority, merit, production-based systems, occupational qualifications, or other permissible factors unrelated to protected category membership.
The requirement applies to most job advertisements, except for internal transfers or promotions, public employee roles governed by collective bargaining agreements, and positions within employers with fewer than 50 employees.
Salaried employees in Hawaii encounter various types of leave provisions under state and federal laws. While paid sick leave is not mandated by Hawaiian law, employers may provide it in alignment with company policies or other regulations. Family leave, available for those employed at least six months by larger Hawaiian employers and concurrently under the Federal Family and Medical Leave Act, offers up to 12 weeks for personal health or caring for family members.
Jury duty leave is provided without mandatory compensation, but adverse actions against employees taking such leave are prohibited. For voting, a two-hour paid leave window is required, aligned with ballot opening hours, while unpaid leave is mandated for victims of domestic violence or sexual assault, contingent on employer size. Paid leave for contributing to disaster response is required for state employees during major disasters. Organ and bone donation leave, limited to 7 days and 30 days respectively, is mandatory, as is granting military leave to National Guard employees per the federal Uniformed Services Employment and Reemployment Rights Act (USERRA).
Hawaii does not have state-mandated regulations for regular employee breaks, aside from minors who are allowed a 30-minute break every 5 hours of work. If an employee works through a 30-minute lunch break, the hours must be counted as worked by the employer.
Hawaii’s Payment of Wages and Other Compensation law outlines the protocol for wage deductions and explicitly forbids certain deductions. Examples of impermissible deductions encompass fines, cash shortages from shared money tills or registers, penalties or replacement costs for breakage, lost or stolen property, property damage, customer credit defaults, and more.
It’s worth noting that when a salaried employee works fewer hours than agreed or required within a week due to absence or termination, the employer has the option to proportionally adjust the employee’s salary to determine their wages for that specific pay period.
When it comes to the conclusion of employment, employees must be provided with their full wages either at the time of discharge or by the following working day.
If the employee resigns or quits, the wages should be paid either on the next regular payday or on the subsequent working day.
In cases where the employee provides their employer with a notice of their intention to quit that spans one pay period, they should receive their wages on their final day of employment.
Learn more about Hawaii Labor Laws through our detailed guide.
Important Cautionary Note
When making this guide we have tried to make it accurate but we do not give any guarantee that the information provided is correct or up-to-date. We therefore strongly advise you seek advice from qualified professionals before acting on any information provided in this guide. We do not accept any liability for any damages or risks incurred for use of this guide.