§388-2 Semimonthly payday; method of payment of wages. (a) Every employer shall pay all wages due to the employer's employees at least twice during each calendar month, on regular paydays designated in advance by the employer, in lawful money of the United States, with checks convertible into cash on demand at full face value thereof, by direct deposit to the employee's account at a federally insured depository institution as provided in subsection (d), or by other means as provided in section 388-5.7; provided that when a majority of an employer's employees or a majority of the employees in a collective bargaining unit recognized by an employer or established by law elect, in a secret ballot election under procedures approved by the director of labor and industrial relations, to be paid once a month on a regularly scheduled basis, the employees shall be paid on such monthly basis. The elections shall not be held more frequently than once in every two years and each election shall be valid for a period of two years.

(b) The earned wages of all employees shall be due and payable within seven days after the end of each pay period.

(c) The director may, upon application showing good and sufficient reasons, permit an employer to:

(1) Establish regular paydays less frequently than semimonthly; provided that the employee shall be paid in full at least once each calendar month on a regularly established schedule; or

(2) Pay earned wages within fifteen days after the end of each pay period.

(d) An employer may pay wages due to the employer's employees by direct deposit to the employee's account at a financial institution; provided that:

(1) The employee has voluntarily authorized, in writing or via electronic signature, the direct deposit to the account and financial institution of the employee's choice;

(2) The deposits and accounts of the financial institution selected are insured by the Federal Deposit Insurance Corporation or any other comparable federal or state agency;

(3) The employee may cancel the direct deposit at any time with reasonable notice;

(4) The employer shall provide a pay statement as required under section 388-7(4);

(5) No employee shall be required to pay any costs or fees for the direct deposit of wages into the employee's account; and

(6) No employee may be disciplined or otherwise penalized for authorizing or refusing to authorize the direct deposit of wages. [L 1963, c 158, pt of §3; am L 1964, c 20, §2; Supp, §95-2; HRS §388-2; gen ch 1985; am L 1989, c 32, §1; am L 2014, c 208, §4]