Employee Expense Reimbursement Requirements in Hawaii

At a glance

Requirements one by one

Hawaii protects specified costs and losses, not every business expense

The current Chapter 388 wage-payment scheme does not state a general rule that an ordinary private employer must repay every necessary or reasonable employee business expense. Haw. Rev. Stat. § 388-6 instead forbids making an employee bear six listed categories of costs and losses.

One category is the cost of a medical or physical examination or medical report for an employee or applicant when the employer or prospective employer requests or requires it, or when federal, state, or local law or regulation requires it. The section does not create a general mileage, travel, phone, home-office, tool, supply, or uniform reimbursement right.

The statute also assigns specified business losses to the employer

Haw. Rev. Stat. § 388-6(1)-(5) says an employee may not be made to bear fines; specified cash shortages; fines, penalties, or replacement costs for breakage; losses on dishonored checks when the employee had discretion to accept or reject the check; or listed losses involving workmanship, property, or customer payment unless attributable to the employee's willful or intentional disregard of the employer's interest.

That last fault standard is limited to the losses named in subsection (5). It is not a general negligence rule for every expense or loss connected to work.

Written consent cannot shift the protected items

Section 388-6 permits some wage deductions or retentions when authorized in writing, but then states that its six listed categories may not be authorized or required to be borne by the employee. Haw. Rev. Stat. § 388-8 also provides that Chapter 388 generally may not be set aside by private agreement.

The statute states no expense-report form, receipt requirement, submission deadline, reimbursement cap, payment clock, advance procedure, or stipend method for the protected costs.

Enforcement depends on whether unpaid wages are involved

Under Haw. Rev. Stat. § 388-9(a), the Director of Labor and Industrial Relations enforces Chapter 388, may investigate alleged violations and hold hearings, and may bring actions for penalties.

Haw. Rev. Stat. § 388-10(a) imposes a chapter-violation penalty of at least $500 or $100 for each violation, whichever is greater. If unpaid wages are legally proven, the employer may also owe an equal sum plus 6% annual interest from the date the wages were due.

Haw. Rev. Stat. § 388-11(a)-(c) allows an employee action for unpaid wages and provides 6% interest, costs, and reasonable attorney's fees. The director generally may accept an assignment of a covered unpaid-wage claim only within one year after the wages became due. These wage remedies do not state a separate damages formula for an out-of-pocket examination cost that was not taken from wages.

What trips people up

Section 388-6 is broader than a simple payroll-deduction rule because it says the listed costs may not otherwise be “required to be borne” by the employee. But it is still a category-specific protection, not a universal necessary-expense statute.

Coverage also matters. Haw. Rev. Stat. § 388-1 excludes the State, its political subdivisions, and the United States from the chapter's employer definition. Public-employee travel and collective-bargaining rules are outside this survey's ordinary private-sector scope.

Common questions

Must a Hawaii employer reimburse ordinary business mileage?

No general private-sector mileage right or rate appears in the current Chapter 388 provisions reviewed for this topic. Public travel schedules, tax rules, and workers' compensation mileage answer different questions.

Who bears the cost of a required employment medical examination?

The covered employee or applicant may not be required to bear it when the employer requests or requires the examination or report, or when law or regulation requires it, under Haw. Rev. Stat. § 388-6(6).

Can an employee agree in writing to pay for a protected loss?

No. Section 388-6 says its listed costs and losses may not be authorized or required to be borne by the employee, and § 388-8 generally bars private waiver of Chapter 388.

Is every loss caused by an employee protected?

No. For the workmanship, property, customer-credit, and nonpayment losses listed in § 388-6(5), the protection does not apply when the loss is attributable to the employee's willful or intentional disregard of the employer's interest.

Statutes and sources

• Haw. Rev. Stat. §§ 388-1 and 388-6. Define chapter coverage and identify the costs and losses that may not be shifted to an employee. Definitions and protected items, accessed July 14, 2026.
• Haw. Rev. Stat. §§ 388-8 and 388-9. Supply the nonwaiver rule and agency enforcement authority. Nonwaiver and enforcement, accessed July 14, 2026.
• Haw. Rev. Stat. §§ 388-10 and 388-11. State the chapter penalties and unpaid-wage remedies. Penalties and employee remedies, accessed July 14, 2026.
• Haw. Rev. Stat. ch. 388. The official chapter index identifies the wage- withholding, nonwaiver, enforcement, penalty, and remedy sections. Official chapter index, accessed July 14, 2026.