Bill > SB1161

This bill expands Hawaii's existing prohibition on non-compete clauses beyond the technology industry to include employees in restaurants and retail stores. Non-compete clauses are contractual provisions that prevent employees from working for competing businesses in a specific geographic area for a certain time after leaving their current job. The bill voids existing and prohibits future non-compete and non-solicit clauses (which prevent employees from recruiting former colleagues) for workers in these industries. The legislature justifies this expansion by citing a 2017 study showing that a previous ban on non-compete clauses in the technology sector increased job mobility by 11% and new-hire wages by 4%. The bill aims to improve employee job prospects, particularly for low-wage workers, by removing barriers to changing jobs, potentially boosting wages, narrowing pay gaps for minorities and women, and encouraging employers to focus on employee retention and satisfaction. The bill is retroactively effective as of July 1, 2015, and specifically defines the terms "restaurant," "non-compete clause," and "non-solicit clause" to provide clarity on its scope and application.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1161&year=2025