Are Non-Competes Enforceable in Hawaii?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Enforceable — statute sets rules
Void for tech-business workers; others need a legitimate purpose
Hawaii's restraint-of-trade statute bars covenants unless they are ancillary to a legitimate purpose and reasonable; the Hawaii Supreme Court held in 2022 that simply restricting competition is not a legitimate purpose. Non-compete clauses, and clauses barring solicitation of the employer's employees, are void in employment contracts with employees of a 'technology business' (one earning most of its income from software or IT development). An employee who prevails in a suit over a non-compete recovers attorney's fees and costs.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Enforceable if reasonable
Hawaii enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.
- Hawaii: Void for tech-business workers; others need a legitimate purpose. HRS 480-4
Other Hawaii rules to check
- Non-solicitation clauses: For technology-business employees, clauses barring solicitation of the employer's employees after leaving are void. Other non-solicits must also be ancillary to a legitimate purpose.
- If a court finds it too broad: No settled rule we could confirm.
- Penalties: An employee or former employee who prevails in a suit to interpret or enforce a non-compete is awarded reasonable attorney's fees and costs.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Hawaii non-compete rules
- Non-solicitation
- For technology-business employees, clauses barring solicitation of the employer's employees after leaving are void. Other non-solicits must also be ancillary to a legitimate purpose.
- Overbroad covenants
- No settled rule we could confirm
- Penalties
- An employee or former employee who prevails in a suit to interpret or enforce a non-compete is awarded reasonable attorney's fees and costs.
Profession-specific rules
- VoidNon-compete and employee non-solicit clauses are void in employment contracts with employees of a technology business (broadcast businesses and franchised telecom carriers excluded). HRS 480-4(d)
Recent and pending changes
Pending: SB 1161 (2025), banning non-compete and non-solicit clauses for restaurant and retail employees, was carried over to the 2026 session; it has not been enacted.
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Hawaii?
Void for tech-business workers; others need a legitimate purpose. Hawaii's restraint-of-trade statute bars covenants unless they are ancillary to a legitimate purpose and reasonable; the Hawaii Supreme Court held in 2022 that simply restricting competition is not a legitimate purpose. Non-compete clauses, and clauses barring solicitation of the employer's employees, are void in employment contracts with employees of a 'technology business' (one earning most of its income from software or IT development). An employee who prevails in a suit over a non-compete recovers attorney's fees and costs.
Did the FTC ban non-competes in Hawaii?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Enforceable — statute sets rules): Alabama, Arkansas, Florida, Georgia, Idaho, Louisiana, Michigan, North Carolina
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Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Hawaii.