Bill > SB214

This bill proposes to gradually eliminate the tip credit in Hawaii, which currently allows employers to pay tipped employees a lower wage by counting their tips towards meeting minimum wage requirements. Currently, employers can pay tipped workers less than minimum wage, with the expectation that tips will make up the difference. The bill establishes a phased reduction of the tip credit, starting with 25 cents per hour beginning January 1, 2025, and continuing with incremental reductions to 50 cents per hour in 2027, 25 cents per hour in 2029, and ultimately eliminating the tip credit entirely by January 1, 2031. Throughout this transition, employers must still ensure that the combined amount of wages and tips equals at least $7.00 more than the applicable minimum wage. The purpose of this legislation is to increase the income of tipped workers by requiring employers to progressively pay a larger portion of their employees' wages, ultimately ensuring that all workers receive at least the full minimum wage directly from their employer, regardless of tips.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=214&year=2025