On July 12, 2022, Governor Ige signed HB 2495 into law as Act 288, which took immediate effect. The Act revises the state’s restrictions on nondisclosure agreements (NDAs) that were first enacted in 2020. The state’s previous law prohibited employers from requiring workers to sign NDAs “as a condition of employment.” Employers in Hawaii were able to continue use of NDAs in settlement agreements or other types of contracts.

Act 288 expands Hawaii's ban on the use of workplace NDAs to cover settlements and other contracts that would prevent employees from talking about claims of sexual harassment or sexual assault occurring in the workplace, at work-related events, between employees, or between the employer and an employee. This change in the law was supported by the Hawaii Department of Human Services, the Hawaii Civil Rights Commission, the Hawaii State Commission on the Status of Women, AAUW of Hawaii, the Hawaii State Democratic Women's Caucus, and Hawaii Women Lawyers.

Hawaii is now one of 15 states that restrict employers’ use of NDAs to prevent employees from openly discussing allegations of workplace sexual misconduct. 

Hawaii law also prohibits employers from retaliating against an employee for disclosing or discussing sexual harassment or sexual assault.

This new ban on workplace NDAs does not apply to:

1. Human resources employees who are expected to maintain the confidentiality of an investigation as part of their official duties;
2. Employees who are requested to maintain the confidentiality of an ongoing human resources investigation; and
3. Proceedings pursuant to HRS §624-25.5 - Proceedings and Records of Peer Review Committees and Quality Assurance Committees. 

Employers should familiarize themselves with Hawaii’s law on Employment Practices, including its ban of the use of workplace NDAs to keep quiet allegations of workplace sexual misconduct and its exceptions, to ensure compliance. HEC members may contact their HR Consultant or call our hotline at 808-836-1511 with questions.