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Hawaii SB 1057 requires that, effective January 1, 2024, Hawaii employers with 50 or more employees include in job advertisements the hourly rate and salary range that reasonably reflects the applicable compensation.

The law does not indicate if the 50-employee threshold includes all employees of the employer or only those employed within Hawaii.

The requirement does not apply to:

• Positions that are internal transfers or promotions by the current employer
• Public employee positions for which salary, benefits or other compensation are determined pursuant to collective bargaining agreements

In the preamble to SB 1057, lawmakers explain that California, Colorado and New York City, which have already enacted this law, have noted benefits to employers, current employees and prospective employees: " … Employers and prospective employees spend less time interviewing because prospective employees will not apply to jobs with a pay level that they feel is too low, and current employees have benefitted from seeing the salaries of new employees and have used that information to seek higher wages, thereby helping to reduce pay inequalities."

Ernst & Young LLP insights

Hawaii joins 28 states and localities that currently impose a similar salary history ban. (EY survey of state and local laws, November 2023.) Most recently, Minnesota and New York also enacted laws that require salary information in job advertisements. Minnesota's law applies to all employers, employment agencies and labor organizations within the state (see Tax Alert 2023-1774) and New York's law applies to employers with four or more employees (see Tax Alert 2023-1406.)