Hawaii Paid Leave Laws 2026: What Employers Must Provide

Hawaii employers ask this constantly: Do I have to give employees paid vacation? Paid sick days? It's not a simple yes or no. There are state-required programs, federal rules that kick in once you hit certain headcounts, and a few traps that catch people off guard. Here's exactly what applies to your business.

No Mandatory Paid Vacation (With a Catch)

Hawaii does not require employers to provide paid vacation to employees. There is no state law mandating vacation days, paid time off (PTO), or paid personal days.

However (and this is critical), if you offer vacation as a benefit and an employee earns it, you may be legally obligated to pay it out. Hawaii courts have found that accrued vacation can be considered a form of earned wages. This means a "use it or lose it" vacation policy must be clearly written and communicated to employees upfront to be enforceable. If you have a murky policy, you could face claims for unpaid wages when an employee leaves. See our guide on Hawaii final paycheck law for more on payout requirements.

No Mandatory Paid Sick Leave (State Level)

Hawaii does not have a statewide mandatory paid sick leave law, unlike California, Oregon, and several other states. At the state level, you are not required to provide paid sick days.

That said, the City and County of Honolulu does not currently have its own paid sick leave ordinance either (as of 2025), unlike some other cities nationally. But this is a quickly evolving area of employment law; check back annually.

Practically speaking, most competitive employers in Hawaii do offer some form of sick leave, partly because employees expect it and partly because sick employees coming to work creates its own problems.

Temporary Disability Insurance (TDI)

While there's no mandatory paid sick leave, Hawaii does require all employers to provide Temporary Disability Insurance (TDI), one of Hawaii's most distinctive employer requirements.

TDI provides partial wage replacement when an employee is unable to work due to a non-work-related illness or injury (including pregnancy). Key details:

• Benefit: 58% of the employee's average weekly wages, up to a state-set cap
• Duration: Up to 26 weeks per disability
• Waiting period: 7 days before benefits begin (no benefit for first week unless hospitalized)
• Who pays: Can be employer-paid or split with employee (employee can contribute up to 0.5% of wages, up to a cap)
• Coverage required from: First day of employment for most employees

You provide TDI by buying a policy from an authorized insurance carrier or, for larger employers, by self-insuring with DLIR approval. There is no state-run plan, and premiums are not paid to the State. Most small businesses in Hawaii use a carrier. Your payroll provider — whether you use Gusto, Paychex, or a local service — should be helping you track TDI contributions and make sure you're covered.

FMLA: Federal Family Leave

The federal Family and Medical Leave Act (FMLA) applies to Hawaii employers with 50 or more employees. It provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for:

• Birth or adoption of a child
• Caring for a seriously ill immediate family member
• The employee's own serious health condition
• Military family leave provisions

FMLA is unpaid. You don't have to pay employees while they're out. That said, many employers let employees burn through their accrued PTO during FMLA, giving the employee some income while the leave still counts toward both the FMLA entitlement and your leave bank. Whatever they're getting paid (or not), their job has to be protected.

Hawaii Family Leave Law

Hawaii has its own family leave law: the Hawaii Family Leave Law (HFLL), which applies to employers with 100 or more employees. It provides up to 4 weeks of unpaid family leave per year for birth, adoption, or serious illness of a child, spouse, or parent.

For most small businesses in Hawaii (under 100 employees), HFLL doesn't apply, but FMLA may once you hit 50 employees.

Holidays — Not Required But Common

Hawaii law doesn't require paid holidays. Thanksgiving off, Christmas morning pay: those are benefits, not legal rights. If your handbook promises holiday pay, you have to honor it. If it doesn't, you have flexibility.

Most Hawaii employers provide common holidays as paid days off as a competitive benefit. If you're open on a holiday, you're not required to pay a premium rate unless your employee handbook promises it.

What Hawaii Employers Should Do

The law sets a floor. What you offer above that determines whether people want to work for you and stick around. Here's what we see employers in our client base typically do:

• Put all policies in writing. Employee handbook, offer letters, or standalone policy docs all work.
• Be clear about accrual and payout rules for vacation/PTO before disputes arise.
• Get TDI coverage in place. It's required, and gaps can be costly. See our Hawaii payroll taxes guide for details.
• Review FMLA eligibility as your headcount grows.
• Consider a competitive PTO policy. In Hawaii's tight labor market, benefits matter for retention.
• Update policies annually. Employment law in Hawaii moves fast.

Tracking paid leave accrual, usage, and payout correctly across a workforce requires a system, which is exactly what a Hawaii payroll service provider provides as part of standard payroll management.

Frequently Asked Questions

Does Hawaii require employers to provide paid vacation?

No. Hawaii law does not mandate paid vacation for employees. Vacation benefits are entirely voluntary and governed by company policy or employment contracts. However, if an employer establishes a paid vacation policy, that policy is legally enforceable and earned vacation may be treated as wages, so it cannot be forfeited without violating Hawaii wage law.

Does Hawaii require paid sick leave?

No state-level paid sick leave mandate exists in Hawaii as of 2026. Hawaii does not have a law requiring employers to offer paid sick days. However, Hawaii's Temporary Disability Insurance (TDI) program provides partial wage replacement for employees who cannot work due to a non-work-related illness or injury, which provides wage replacement coverage during extended illness or injury.

What leave protections do Hawaii employees have under state law?

Hawaii employees are protected under the Hawaii Family Leave Law (HFLL), which requires employers with 100 or more employees to provide up to four weeks of unpaid family leave per calendar year for the birth, adoption, or serious health condition of a child or family member. Also, the federal FMLA provides up to 12 weeks of unpaid leave for employers with 50+ employees.

Is TDI considered paid leave in Hawaii?

TDI provides wage replacement — not employer-paid leave — when an employee is disabled by a non-work-related condition. Benefits are funded through a combination of employer and employee contributions. TDI pays up to 58% of the employee's average weekly wage, subject to a weekly maximum. It covers pregnancy, serious illness, and non-occupational injuries, but is separate from vacation or sick leave policies.