Hawaii Employment Contracts & Non-Competes
Non-compete enforceability, severance agreements, and contract issues under Hawaii employment law.
Non-Compete Agreements
HRS § 480-4(d) makes noncompete and nonsolicit clauses void and of no force and effect for employees of a technology business (deriving most income from software or IT development); for other employees, reasonable restrictive covenants are lawful, including covenants protecting trade secrets, covenants ancillary to the sale of a business, and covenants upon a partner's withdrawal, provided they do not substantially lessen competition §480:4.
Key Non-Compete Factors
| What Courts Examine | |
|---|---|
| Duration | Whether the time restriction is reasonable |
| Geographic Scope | Whether the area restriction matches the employer's legitimate business area |
| Scope of Activity | Whether the restricted activities are narrowly tailored |
| Consideration | Whether the employee received adequate consideration for signing |
| Hardship | Whether enforcement would impose undue hardship on the employee |
Severance Agreements
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