Hawaii is the latest state to enact legislation increasing the state minimum wage rate. Eventually Hawaii’s minimum wage rate will reach $10.10 per hour. Right now, Hawaii’s minimum wage rate is $7.25 per hour. Hawaii’s new minimum wage rates will be phased in as follows:
- $7.75 an hour on Jan. 1, 2015
- $8.50 per hour beginning Jan. 1, 2016,
- $9.25 per hour beginning Jan. 1, 2017, and
- $10.10 per hour beginning Jan. 1, 2018.
It’s welcome news for Hawaii ‘s lowest wage earners. Hawaii’s is one of the most expensive states to live in.
The law also has good news for workers in tipped service and hospitality jobs. Currently, Hawaii allows employers to pay tipped employees twenty-five cents less than the general minimum wage if the employee earns at least 50 cents more than the applicable minimum wage rate in combined wages and tips. Under the new law, if the combined amount the employee receives in wages and tips is at least $7.00 more than the applicable minimum wage, an employer can take a “tip credit” of:
- 50 cents per hour beginning on Jan. 1, 2015, and
- 75 cents per hour beginning on Jan. 1, 2016.
Compliance Poster Company will have Hawaii All-On-One Posters updated with the new wage rates later this year. Mahalo, Hawaii!