SB1161

Hawaii SB1161 voids existing non-compete clauses and bans future ones for restaurant and retail store employees.

Hawaii SB1161 amends Hawaii Revised Statutes to void existing non-compete clauses and prohibit future ones for employees of restaurants and retail stores. The bill defines a "non-compete clause" as a contract provision preventing an employee from working in a specific area for a set time after leaving employment. The legislature finds that such clauses hinder employee mobility, increase legal costs, and can lead to lower wages and wider pay gaps. The bill's changes take effect retroactively to July 1, 2015.