Hawaii Employment Background Check Laws

This summary of Hawaii’s background check laws and Ban-the-Box rules is regularly updated. However, as laws are subject to change, it’s recommended to consult with legal counsel for precise guidance.

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA), a federal law, sets standards for hiring practices and protects both employers and job applicants by regulating the use of background checks in employment decisions.

State Law

Under Hawaii Revised Statutes §378-2, discriminatory practices in employment are prohibited, and offenses are clearly defined.

Our interpretation: Employers in Hawaii are restricted from making employment decisions based solely on an applicant’s credit information, unless it is directly relevant to the job requirements.

• §378-2.7 – Employer Inquiries into Credit History or Reports
  Our take: Employers may inquire about an applicant’s credit information only after extending a job offer. If the applicant’s credit history is deemed irrelevant to the position, the offer may be rescinded. Exceptions to this rule include:
  • When federal or state law mandates a credit check.
  • When the role is managerial or supervisory.
  • When the position is at a federally insured financial institution.

Conviction Records and Criminal Background Checks

• HI Revised Statutes §378-2.5 (a) (b) – Employer Inquiries into Conviction Records
  Our take: Employers in Hawaii can consider an applicant’s criminal conviction records when making hiring decisions, provided the record is relevant to the job duties. The relevant timeframe for review is:
  • Felony convictions: Within the past 7 years.
  • Misdemeanor convictions: Within the past 5 years. This information may only be considered after a conditional job offer is extended. However, exceptions may apply depending on the nature of the position.

Ban-the-Box & Fair Hiring Laws

Who Must Follow:
The Ban-the-Box law applies to all employers in Hawaii, both public and private.

Timing of Inquiry:
Employers are prohibited from inquiring about criminal history until after a conditional job offer has been extended.

Consideration of Records:
Employers may only inquire about:

• Felony convictions within the past 7 years.
• Misdemeanors within the past 5 years.
• Pending criminal cases.

Adverse Action Implications:
There are no specific adverse action requirements under Hawaii’s Ban-the-Box law, but employers should follow the legal steps if an applicant’s criminal history influences the hiring decision.

Employers are encouraged to stay up-to-date with legal developments to ensure compliance with these laws.