HOUSE OF REPRESENTATIVES	H.R. NO.	143
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

HOUSE RESOLUTION

requesting the Department of business, economic development, and tourism to evaluate ways to expand remote employment opportunities for hawaii residents and reduce barriers that may discourage out-of-state employers from hiring individuals who live in the state.

WHEREAS, Hawaii's economy has long been heavily dependent on the tourism sector, making the State vulnerable to global economic disruptions, travel fluctuations, and external market forces; and

WHEREAS, advances in technology and the expansion of remote work have created new opportunities for highly skilled workers to contribute to companies and industries located outside the State while continuing to live in Hawaii; and

WHEREAS, many locals who grew up in the islands must leave the State to pursue career opportunities due to limited in-state and high-wage opportunities; and

WHEREAS, encouraging remote employment opportunities for Hawaii residents can help retain local talent, support working families, diversify the State's economic base, and increase household income; and

WHEREAS, employers located outside the State often face uncertainty regarding Hawaii tax nexus rules, employer registration requirements, and compliance obligations when hiring Hawaii residents; and

WHEREAS, clarifying these rules and simplifying administrative processes may reduce barriers that prevent out-of-state employers from hiring qualified Hawaii residents; and

WHEREAS, policy mechanisms such as remote-employer safe harbors, simplified employer registration processes, and targeted incentives may increase participation by out-of-state employers while maintaining appropriate safeguards and accountability; and

WHEREAS, modernizing state policy to support remote work can strengthen Hawaii's long-term economic resilience, reduce outward migration of residents, and expand high-wage employment opportunities; now, therefore

BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, the Department of Business, Economic Development, and Tourism is urged to evaluate ways to expand remote employment opportunities for Hawaii residents and reduce barriers that may discourage out-of-state employers from hiring individuals who live in the State; and

BE IT FURTHER RESOLVED the evaluation is requested to:

(1) Consider potential approaches to clarify regulatory and tax compliance expectations for employers located outside the State that hire Hawaii residents to perform remote work;

(2) Ensure the maintenance of applicable worker protections;

(3) Ensure compliance with State labor and tax laws;

(4) Explore methods to simplify employer onboarding and compliance processes when hiring Hawaii residents for remote work;

(5) Explore opportunities for improved coordination among relevant state agencies; and

(6) Consider policies that prioritize opportunities for long-term Hawaii residents and individuals educated in Hawaii, with the goal of strengthening the State's workforce, retaining local talent, and supporting economic diversification; and

BE IT FURTHER RESOLVED the Department of Business, Economic Development, and Tourism is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2027; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, the Director of Business, Economic Development, and Tourism, the Director of Taxation, and the Director of Labor and Industrial Relations.

OFFERED BY:

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Report Title:

Remote Work; Workforce Retention; Economic Diversification