At-a-Glance Compliance Overview

State Mini-FCRA Laws

Hawaii regulates consumer reporting agencies through a state consumer reporting statute that supplements the federal Fair Credit Reporting Act.

The statute appears in:

Haw. Rev. Stat. §489P-1 through §489P-10

These provisions regulate consumer reporting agencies and establish rules related to:

• the accuracy of consumer reports
• disclosure of consumer report information
• consumer dispute and correction procedures.

Employers using third-party background screening providers must comply with both the federal Fair Credit Reporting Act (FCRA) and Hawaii’s consumer reporting agency law when obtaining employment background checks.

Criminal Record Reporting Rules

Hawaii does not impose a state-specific lookback limit on the reporting of criminal convictions by consumer reporting agencies.

As a result, criminal convictions may generally be reported without time limitation under FCRA §605(a)(5).

Non-conviction information is governed by federal law. Under the Fair Credit Reporting Act, consumer reporting agencies generally may not report arrests or other adverse non-conviction information that is more than seven years old.

Expunged Arrest Records

Hawaii permits expungement of certain non-conviction arrest records under:

Haw. Rev. Stat. §831-3.2

Eligible records may include arrests that did not result in conviction. Once expunged, the record generally may not appear in employment background checks.

Hawaii generally does not allow expungement of criminal convictions, making expungement protections narrower than in many states.

Fair Chance / Ban-the-Box Law

Hawaii adopted one of the earliest statewide fair chance hiring laws in the United States.

The statute appears in:

Haw. Rev. Stat. §378-2.5

Employer Coverage

The law applies to both public and private employers in Hawaii.

Criminal History Inquiry Timing

Employers may not inquire about an applicant’s criminal history until after a conditional offer of employment has been made.

Employers must therefore remove criminal history questions from job applications and delay background checks until the conditional offer stage.

Conviction Consideration Limits

Hawaii law also restricts which convictions employers may consider in hiring decisions.

Under Haw. Rev. Stat. §378-2.5(c):

The lookback period is measured from the date of conviction or release from incarceration, excluding time spent incarcerated.

In addition to the lookback limits, the conviction must be rationally related to the duties and responsibilities of the position.

Employer Exemptions

The timing and conviction lookback rules do not apply to certain employers that are required or expressly permitted by state or federal law to conduct criminal background checks.

These exemptions appear in Haw. Rev. Stat. §378-2.5(d) and include certain regulated employers such as:

• law enforcement agencies
• financial institutions
• schools and childcare providers
• certain healthcare employers.

Employers falling within these statutory exemptions may inquire about criminal history earlier in the hiring process and may consider older convictions.

Credit Check Restrictions

Hawaii restricts employer use of consumer credit reports under:

Haw. Rev. Stat. §378-2.7

General Rule

Employers may not obtain a credit report for employment purposes unless the information is substantially job-related.

Exceptions

Credit reports may be obtained when:

• the position involves managerial or supervisory responsibility
• the position involves access to confidential financial information
• the employer is a financial institution
• the employer is required by law to obtain a credit report.

Employers should document the job-related reason for obtaining credit reports.

Cannabis Use and Drug Testing Rules

Hawaii permits the use of medical cannabis under Haw. Rev. Stat. Chapter 329.

However, Hawaii law does not broadly prohibit employers from enforcing drug-free workplace policies.

Employers may continue to:

• maintain drug testing programs
• prohibit marijuana use during work hours
• discipline employees for workplace impairment.

Hawaii has not legalized recreational marijuana, and the medical marijuana law does not create broad employment protections comparable to those in some other states.

Local Fair Chance or Screening Ordinances

Hawaii does not currently maintain municipal fair chance hiring ordinances affecting private employers.

The statewide fair chance hiring law under Haw. Rev. Stat. §378-2.5 governs employment background check practices across the state.

Record Sealing / Clean Slate Laws

Hawaii allows expungement of certain non-conviction arrest records under Haw. Rev. Stat. §831-3.2.

Expungement allows individuals to remove eligible arrest records from public access when the case did not result in a conviction.

Once expunged, the record generally may not appear in employment background checks.

Hawaii does not currently maintain a broad clean slate law for automatic conviction sealing.

Key Statutes

• Hawaii Fair Chance Hiring Law – Haw. Rev. Stat. §378-2.5
• Hawaii Credit Check Restriction – Haw. Rev. Stat. §378-2.7
• Hawaii Salary History Ban – Haw. Rev. Stat. §378-2.4
• Hawaii Consumer Reporting Agency Law – Haw. Rev. Stat. §489P-1 – §489P-10
• Hawaii Expungement Statute – Haw. Rev. Stat. §831-3.2

Employer Compliance Checklist

Employers conducting background checks in Hawaii should implement several compliance practices.

• Delay criminal history inquiries until after a conditional offer of employment.

• Limit consideration of criminal convictions to the five-year misdemeanor and seven-year felony lookback periods, excluding periods of incarceration.

• Ensure convictions considered in hiring decisions are rationally related to the duties of the position.

• Confirm whether the employer qualifies for statutory exemptions under §378-2.5(d).

• Ensure background screening providers exclude expunged arrest records from employment reports.

• Limit credit checks to positions where credit history is substantially related to the job.

• Avoid requesting salary history during the hiring process.

• Follow federal Fair Credit Reporting Act disclosure and adverse action procedures when ordering consumer reports.