Bill > SB604

This bill modifies Hawaii's minimum wage and tip credit laws by establishing a new framework for how employers can calculate wages for tipped employees. Starting January 1, 2026, the bill requires the Department of Labor and Industrial Relations to annually calculate a tip credit amount that will be specifically set at 20% of the minimum wage. The bill continues the state's planned minimum wage increases, reaching $16.00 per hour in 2026 and $18.00 per hour in 2028. For tipped employees, employers will be allowed to pay a reduced wage, with the requirement that when tips are added to the employer's wage, the total compensation is at least 50 cents more than the applicable minimum wage. The key innovation is the new annual calculation method for the tip credit, which will dynamically adjust based on the current minimum wage, ensuring that the tip credit remains proportional to wage increases. This approach aims to provide more predictability and transparency for both employers and employees in the hospitality and service industries.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=604&year=2026