§ 1. Governing Statutory & Common Law Authority
The enforceability of non-competition agreements in Hawaii is governed by HRS § 480-4(d) (tech workers); common law (others). Non-competes banned for technology workers under Act 158 (2015). Other employees may still be subject to non-competes under reasonableness standards.
§ 2. Compensation Threshold Requirements
Hawaii does not impose a minimum salary threshold for non-compete enforceability. This means non-competes may be enforced against employees at any income level, including hourly and part-time workers.
§ 3. Temporal Limitations on Post-Employment Restrictions
Hawaii does not codify a maximum duration. Reasonableness standard for non-tech workers. In practice, 1-2 years is generally considered the outer limit of reasonableness, though outcomes vary significantly based on the employee's role and access to trade secrets.
§ 4. Judicial Modification (Reformation Doctrine)
Hawaii follows the reformation doctrine, granting courts broad authority to rewrite overbroad non-compete terms. This is the most employer-favorable approach — even a poorly drafted agreement may be reshaped into an enforceable restriction.
§ 5. Statutory Exemptions & Carve-Outs
Hawaii law exempts certain workers from non-compete enforcement:
- Technology workers (Act 158, 2015)
§ 6. Consideration & Contract Formation
Adequate consideration required. Whether this is legally sufficient — especially for agreements presented mid-employment rather than at hiring — is frequently contested.
§ 7. Effect of Involuntary Termination
Not well-settled; limited case law. Courts may apply heightened scrutiny when the employer initiated the termination, particularly for termination without cause or mass layoffs.
Practitioner Notes
Tech worker ban is unique. Applies broadly to employees in the technology sector.