Bill > SB1161

This bill extends Hawaii's existing prohibition on non-compete and non-solicit clauses in employment contracts to include employees in restaurants and retail stores, in addition to the previously protected technology industry workers. The legislation builds on a 2015 law that initially banned such clauses for technology workers, citing a subsequent study showing that this approach increased job mobility by 11% and new-hire wages by 4%. The bill defines non-compete clauses as contractual provisions that prevent an employee from working in a specific geographic area for a certain time after leaving their job, and non-solicit clauses as provisions preventing employees from recruiting other employees after leaving their employment. By voiding these restrictive clauses, the bill aims to enhance worker mobility, potentially improve wages, narrow pay gaps experienced by minorities and women, and encourage employers to focus on employee retention and satisfaction. The legislation will be retroactively effective from July 1, 2015, and applies specifically to restaurants (using the definition from section 321-30.3) and retail stores, making any existing non-compete or non-solicit clauses for employees in these sectors null and unenforceable.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1161&year=2026