Hawaii non-compete law

Pay figure in the law

None found in the statutes we read

Separate rules for professions

technology workers

Statutes and official texts quoted

Haw. Rev. Stat. § 480-4(d); Haw. Rev. Stat. § 480-4(c)(1); Haw. Rev. Stat. § 480-4(c)(4); Haw. Rev. Stat. § 607-14.9; Haw. Rev. Stat. § 480-4 (history); HRS § 480-4(c)(2); HRS § 480-4(d)

Health care and other professions

Hawaii prohibits noncompete and nonsolicit clauses in employment contracts of employees of a technology business; such clauses are void (trade-secret covenants under (c)(4) excepted).

“Except as provided in subsection (c)(4), it shall be prohibited to include a noncompete clause or a nonsolicit clause in any employment contract relating to an employee of a technology business. The clause shall be void and of no force and effect.”
Haw. Rev. Stat. § 480-4(d)

A 'technology business' derives the majority of its gross income from products or services resulting from software or IT development, excluding broadcast industry and certain franchised telecommunications carriers.

“"Technology business" means a trade or business that derives the majority of its gross income from the sale or license of products or services resulting from its software development or information technology development, or both.”
Haw. Rev. Stat. § 480-4(d)

A technology business excludes businesses considered part of the broadcast industry and franchised telecommunications carriers.

“A "technology business" excludes any trade or business that is considered by standard practice as part of the broadcast industry or any telecommunications carrier, as defined in section 269-1, that holds a franchise or charter enacted or granted by the legislative or executive authority of the State or its predecessor governments.”
HRS § 480-4(d)

Key terms

For Hawaii's technology-business rule, a noncompete clause is an employment-contract clause barring the employee from working in a specific area for a specific time after leaving, and a nonsolicit clause bars soliciting the employer's employees after leaving.

“"Noncompete clause" means a clause in an employment contract that prohibits an employee from working in a specific geographic area for a specific period of time after leaving employment with the employer. "Nonsolicit clause" means a clause in an employment contract that prohibits an employee from soliciting employees of the employer after leaving employment with the employer.”
HRS § 480-4(d)

Exceptions

Lawful ancillary covenants include a business seller's covenant not to compete within a reasonable area and time, unless the effect may substantially lessen competition.

“A covenant or agreement by the transferor of a business not to compete within a reasonable area and within a reasonable period of time in connection with the sale of the business;”
Haw. Rev. Stat. § 480-4(c)(1)

An employee's covenant not to use the employer's trade secrets in competition, for a reasonably necessary time and without undue hardship, is lawful.

“A covenant or agreement by an employee or agent not to use the trade secrets of the employer or principal in competition with the employee's or agent's employer or principal, during the term of the agency or thereafter, or after the termination of employment, within such time as may be reasonably necessary for the protection of the employer or principal, without imposing undue hardship on the employee or agent.”
Haw. Rev. Stat. § 480-4(c)(4)

Hawaii allows a covenant between partners not to compete with the partnership, within a reasonable area and for a reasonable time, when a partner withdraws.

“A covenant or agreement between partners not to compete with the partnership within a reasonable area and for a reasonable period of time upon the withdrawal of a partner from the partnership;”
HRS § 480-4(c)(2)

If it is challenged

In a civil action to interpret or enforce an agreement restricting an employee from competing, a prevailing employee or former employee shall be awarded reasonable attorneys' fees and costs.

“any employee or former employee who prevails shall be awarded reasonable attorneys' fees and costs.”
Haw. Rev. Stat. § 607-14.9

When the rules took effect

The technology-business provision was added by L 2015, c 158.

“am L 2015, c 158, §2]”
Haw. Rev. Stat. § 480-4 (history)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Hawaii rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Hawaii?

Hawaii prohibits noncompete and nonsolicit clauses in employment contracts of employees of a technology business; such clauses are void (trade-secret covenants under (c)(4) excepted). (Haw. Rev. Stat. § 480-4(d)).

Does Hawaii have special non-compete rules for health care workers or other professions?

Hawaii prohibits noncompete and nonsolicit clauses in employment contracts of employees of a technology business; such clauses are void (trade-secret covenants under (c)(4) excepted). (Haw. Rev. Stat. § 480-4(d)).