Bill > SB455

This bill addresses Hawaii's minimum wage by establishing an automatic annual adjustment mechanism tied to the Urban Hawaii Consumer Price Index (CPI), starting in January 2029. Currently, the minimum wage is set to reach $18 per hour by 2028, and this legislation would implement a new process where the Department of Labor and Industrial Relations will calculate an adjusted minimum wage rate each year, rounding to the nearest twenty-five cents based on the previous twelve months of CPI data. The bill includes a critical safeguard that prevents the minimum wage from decreasing if the CPI calculation would result in a lower rate, ensuring workers' wages remain stable. The legislative findings highlight Hawaii's high cost of living, noting that a minimum wage worker must currently work 98 hours per week to afford a one-bedroom rental at fair market prices, and that a living wage for a single adult in 2024 is estimated at $27.33 per hour. By indexing the minimum wage to the cost of living, the bill aims to prevent wage stagnation and provide more financial security for low-wage workers, following the approach already used by thirteen states and the District of Columbia.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=455&year=2025