The Hawaii non-compete agreement is a document that is drafted by an employer to restrict their employees in their ability to compete with the business following their term of employment. The non-solicitation clauses provide the employer with protection against the employee recruiting workers or clients. Hawaii allows for the inclusion of restrictive covenants in employment contracts; however, like in any state, the restrictions can’t be unreasonable in their scope. The term of the restrictive covenant must not be unfair in length, and the radius of the geographical area in which the employee can operate post-employment cannot be too large. The determination of the reasonableness of the contract will be analyzed on a case-by-case basis. It should be noted that, with the passing of ACT 158 on July 1st, 2016, it is prohibited to include restrictive covenants for employees operating in the technology industry.
Laws – HI Rev Stat § 480-4(c)(4)
Non-Compete Limit – Not Statutorily Defined
Non-Solicitation Limit – Not Statutorily Defined