Hawaii non compete law restricts non competes by statute: hawaii voids any non compete or employee non solicit clause in an employment contract, post-employment contract or separation agreement for an employee of a technology business (one earning most of its income from software or information-technology products and services) signed after June 30, 2015; for every other employer,
HRS 480-4(c)(4) still allows a covenant not to compete that is reasonably necessary to protect the employer without undue hardship on the worker, judged under the Hawaii Supreme Court’s reasonableness test.
This guide gives the exact Hawaii non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one. Rules verified against the statute on 2026-10-08; confirm the current rule with Hawaii Department of Labor and Industrial Relations, Wage Standards Division or an attorney before you rely on it.
Hawaii Non Compete Law at a Glance
| Status | Restricted by statute |
| Income threshold | No earnings threshold |
| Statute | Haw. Rev. Stat. 480-4(d) |
| Notice / consideration | No statutory notice rule |
| Carve-outs | Technology-business employees (non competes and employee non solicits void, HRS 480-4(d)); NDAs and trade-secret clauses remain allowed everywhere… |
| Overbroad terms | void for technology workers; reasonableness test (duration, area, scope, hardship) for others |
| In effect since | July 1, 2015 (Act 158, HB 1090 CD1) |
In This Hawaii Non Compete Law Guide:
Is a Non Compete Enforceable Under Hawaii Non Compete Law?
Hawaii voids any non compete or employee non solicit clause in an employment contract, post-employment contract or separation agreement for an employee of a technology business (one earning most of its income from software or information-technology products and services) signed after June 30, 2015; for every other employer,
HRS 480-4(c)(4) still allows a covenant not to compete that is reasonably necessary to protect the employer without undue hardship on the worker, judged under the Hawaii Supreme Court’s reasonableness test.
The statute is Haw. Rev. Stat. 480-4(d). The carve-outs matter: technology-business employees (non competes and employee non solicits void, HRS 480-4(d)); NDAs and trade-secret clauses remain allowed everywhere; sale-of-business covenants allowed (480-4(c)(1)).
Hawaii Non Compete Law at a Glance
Rules verified against the statute on 2026-10-08; confirm the current rule with Hawaii Department of Labor and Industrial Relations, Wage Standards Division or an attorney before you rely on it. The statute row is where to check it yourself.
| Status | Restricted by statute |
| What the rule says | Hawaii voids any non compete or employee non solicit clause in an employment contract, post-employment contract or separation agreement for an employee of a technology business (one earning most of its income from software or information-technology products and services) signed after June 30, 2015; for every other employer, HRS 480-4(c)(4) still allows a covenant not to compete that is reasonably necessary to protect the employer without undue hardship on the worker, judged under the Hawaii Supreme Court’s reasonableness test. |
| Income threshold | No earnings threshold |
| Statute | Haw. Rev. Stat. 480-4(d) |
| Carve-outs | Technology-business employees (non competes and employee non solicits void, HRS 480-4(d)); NDAs and trade-secret clauses remain allowed everywhere; sale-of-business covenants allowed (480-4(c)(1)) |
| What a court does with an overbroad term | void for technology workers; reasonableness test (duration, area, scope, hardship) for others |
| In effect since | July 1, 2015 (Act 158, HB 1090 CD1) |
The Reasonableness Test Under Hawaii Non Compete Law
Hawaii courts enforce a non compete only if it serves a legitimate business purpose and is reasonable. A restriction is generally treated as unreasonable if it reaches further than needed to protect the employer’s real interests, such as trade secrets, confidential information or customer goodwill. It also fails if it places undue hardship on the worker or harms the public more than it helps the employer.
Courts look at how long it lasts, the area it covers and the type of work it blocks.
Hawaii courts have generally upheld restrictions that are short, often 1 year, and limited to the island or market where the employer actually does business. Restrictions covering the whole state, wide areas or all kinds of work, or with no clear business interest behind them, are more likely to be struck down or narrowed.
With an overbroad term the court will void for technology workers; reasonableness test (duration, area, scope, hardship) for others.
Hawaii Non Compete Law If You Were Fired or Laid Off
Being let go does not automatically cancel a non compete, but a layoff without cause weighs against the employer, and some statutes release a worker who was dismissed or require the employer to keep paying during the restriction.
What the Employer Must Give Under Hawaii Non Compete Law
A non compete is a contract, so the employer must give something for it — the job itself for a new hire, and in many states a raise, a bonus or a promotion for a current employee.
Non Solicit and Non Disclosure Agreements Under Hawaii Non Compete Law
Hawaii courts generally weigh non solicit agreements under the same reasonableness standard as non competes. Because they block contact with certain clients or coworkers rather than a whole line of work, they are often easier to justify. Non disclosure agreements protect confidential information, don’t stop someone from working, and are generally the easiest to enforce.
For employees of technology businesses, Hawaii law makes non solicit clauses void too, not just non competes.
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If You Already Signed One: Hawaii Non Compete Law in Practice
Read the agreement closely and note how long it lasts, the area it covers, the work it limits and whether it applies no matter how the job ended. Before you accept a new offer, you can ask your former employer in writing for a release or a written statement that the new role doesn’t conflict. Having a Hawaii employment attorney review the agreement can help you understand your options.
Confirm the details with a lawyer before acting.
An employer that believes a worker broke a valid non compete may ask a Hawaii court for an injunction to stop the competing work and may seek money damages for proven losses. Attorney fees may be recoverable if the contract allows them or a Hawaii fee statute applies, and a court decides each case on its own facts.
The Federal Rule and Hawaii Non Compete Law
The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so Hawaii non compete law controls.
Other Hawaii Non Compete Law Rules to Know
Hawaii voids non compete and non solicit clauses in employment contracts with technology businesses, meaning businesses that get most of their gross income from software or information technology development. Broadcasters and some state-franchised telecommunications carriers are excluded. Workers in other fields still face the reasonableness test.
Think your employer owes you money or broke the law?
A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.
Hawaii — the bottom line
- Hawaii non compete law is a statute with its own limits — the first thing to check is which side of the line your agreement falls on.
- Under Hawaii non compete law, an overbroad term is void for technology workers; reasonableness test (duration, area, scope, hardship) for others — the words of your own agreement decide more than the headline rule.
- Hawaii non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.
Frequently Asked Questions
Are non competes enforceable in Hawaii?
Sometimes.
Hawaii voids any non compete or employee non solicit clause in an employment contract, post-employment contract or separation agreement for an employee of a technology business (one earning most of its income from software or information-technology products and services) signed after June 30, 2015; for every other employer,
HRS 480-4(c)(4) still allows a covenant not to compete that is reasonably necessary to protect the employer without undue hardship on the worker, judged under the Hawaii Supreme Court’s reasonableness test.
Is there an income threshold under Hawaii non compete law?
No. Hawaii has no earnings threshold; enforcement turns on whether the agreement is reasonable.
What does a Hawaii court do with an overbroad non compete?
Void for technology workers; reasonableness test (duration, area, scope, hardship) for others.
Can my employer enforce a non compete in Hawaii after firing me?
In most states the agreement can still be enforced after a firing, but a layoff without cause weighs against the employer and some statutes release the worker outright.
I signed a non compete in Hawaii and have a new offer — what should I do?
Read the agreement closely and note how long it lasts, the area it covers, the work it limits and whether it applies no matter how the job ended. Before you accept a new offer, you can ask your former employer in writing for a release or a written statement that the new role doesn’t conflict.
Official Hawaii Sources & Resources
- Hawaii Department of Labor and Industrial Relations, Wage Standards Division: https://labor.hawaii.gov/wsd/
- Hawaii non compete statute (Haw. Rev. Stat. 480-4(d)): https://www.capitol.hawaii.gov/hrscurrent/vol11_ch0476-0490/hrs0480/hrs_0480-0004.htm
- Verified source: https://data.capitol.hawaii.gov/sessions/session2015/Bills/HB1090_SD2_.HTM
- Verified source: https://data.capitol.hawaii.gov/sessions/session2015/Bills/HB1090_CD1_.PDF
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
- Federal Trade Commission — the non compete rule (status): ftc.gov
- Hawaii bar lawyer referral: https://hsba.org/get-involved/lris
This Hawaii non compete law guide was last verified against official Hawaii sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Hawaii Workplace Rights Guides
- Hawaii Final Paycheck Law: Deadlines and Penalties
- Hawaii Wrongful Termination Laws: When a Firing Is Illegal
- Hawaii At Will Employment Law: The Exceptions
- Hawaii Labor Laws: Every Rule in One Place
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Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.