On June 24, 2022, Hawaii Governor David Ige signed into law HB 2510 which incrementally increases the state’s minimum wage. The current minimum wage in Hawaii is $10.10 per hour. The minimum cash wage is $9.35 but only if an employee earns $7.00 more than the minimum wage through tips and wages.
The Details:
The minimum wage in Hawaii is scheduled to increase as follows:
$12.00 per hour beginning October 1, 2022
$14.00 per hour beginning January 1, 2024
$16.00 per hour beginning January 1, 2026
$18.00 per hour beginning January 1, 2028
The minimum cash wage for tipped employees is scheduled to increase as follows:
$11.00 ($1.00 employer tip credit) per hour beginning October 1, 2022
$12.75 ($1.25 employer tip credit) per hour beginning January 1, 2024
$14.75 ($1.25 employer tip credit) per hour beginning January 1, 2026
$16.50 ($1.50 employer tip credit) per hour beginning January 1, 2028
Note: As already provided in Hawaii law, an employer may take a tip credit (allowing an employer to pay a cash wage less than the minimum wage) only if the combined amount the employee receives from the employer and in tips is at least $7.00 more than the applicable minimum wage.
Next Steps:
Hawaii employers must pay at least the minimum wage as scheduled above. In addition, employers must post the required notice once updated by the state.
Have Questions?
Please contact your dedicated service professional with any questions.