Bill > SB505

This bill requires the Research and Economic Analysis Division of Hawaii's Department of Business, Economic Development, and Tourism to conduct a comprehensive study on the potential impacts of minimum wage increases on small businesses and the state's overall economic health. The study will explore a wide range of economic effects, including changes in operating costs, hiring practices, employee retention, business operations, consumer prices, wage differentials, and competitive dynamics across different counties and industry sectors such as retail, food service, tourism, healthcare, and agriculture. The research will utilize both quantitative and qualitative methods to examine how businesses might adapt to wage increases through strategies like cost-cutting, price adjustments, and operational changes, and will assess the potential short- and long-term implications for business viability. The division is mandated to submit a detailed report with findings and recommendations to the legislature before the 2026 regular session, and the bill appropriates $200,000 to establish a full-time research consultant position to complete this study. The legislation aims to provide policymakers with a nuanced, data-driven understanding of minimum wage policy's complex economic impacts, ensuring that future wage decisions balance worker equity with the sustainability of small businesses.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=505&year=2025