Summary

License to Work

The data and information here come from IJ’s License to Work report, released in November 2017.

Hawaii’s occupational licensing laws for lower-income occupations are the most burdensome in the nation. On average, Hawaii’s barriers to entry comprise $438 in fees, 988 days—nearly three years—of education and experience, and around two exams. Hawaii also licenses 63 of the 102 occupations studied here—more than average, though fewer than some other similarly burdensome states. For this reason, it ranks as the fifth most broadly and onerously licensed state. While this rank is better than Hawaii’s first-place burden score, it still means the Aloha State is one of the worst licensing environments for lower-income occupations.

Some of Hawaii’s most burdensome licenses are for occupations rarely licensed by other states. Tree trimmers, for example, must pay $615 in fees, demonstrate 1,460 days (four years) of experience and pass two exams before they can work, while the average burdens in the seven states that license the occupation are $325 in fees, 574 days of education and experience, and roughly two exams. With so few states licensing tree trimmers, it is questionable for Hawaii to license them at all, let alone so onerously.

Hawaii also imposes burdens on 54 occupations that are more onerous than those for EMTs, an occupation that arguably has a stronger connection to public safety. For example, it is harder to become a city/transit bus driver, cosmetologist or construction contractor than it is to become an EMT. Would-be EMTs must demonstrate 180 hours of education and 135 hours of experience (losing about 74 days) and pass two exams, while all 33 of the Hawaii contractor licenses studied require nearly 20 times as much education and experience (1,460 days or four years) and at least one—if not two—exams. Hawaii could improve its rankings by repealing or reducing such heavy burdens, or—if government regulation is necessary—by replacing them with less restrictive regulatory alternatives.