JSFiddle - React, Tailwind, and code Playground

HTML

<div id="container">
  <div class="item">First</div>
  <div class="item">Second</div>
  <div class="item">Third</div>
</div>

CSS

#container {
  display: inline-block;
  overflow: hidden;
  border: 2px solid black;
  border-radius: 24px;
}

.item {
  padding: 8px 24px;
}

.item:hover {
  background-color: gray;
}