Bill > SB214

This bill proposes to gradually eliminate the tip credit in Hawaii, which currently allows employers to pay tipped employees a lower hourly wage by counting their tips toward meeting minimum wage requirements. Specifically, the bill will reduce the tip credit amount over time, starting with $1.00 per hour in October 2022, decreasing to 75 cents in January 2024, and continuing to decline until reaching zero cents per hour in January 2031. Under the current and proposed system, employers must ensure that the combined amount of direct wages and tips equals at least $7.00 more than the applicable minimum wage. The legislature's purpose in introducing this bill is to increase the income of tipped workers by requiring employers to pay all employees at least the full minimum wage, without relying on tips to make up a portion of their compensation. This gradual phase-out allows businesses time to adjust to the changing wage requirements while providing a more stable and predictable income for tipped employees in industries such as restaurants and hospitality.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=214&year=2026