Bill > HB479

This bill modifies Hawaii's minimum wage and tip credit laws by establishing a new method for calculating the tip credit for workers who receive tips. Starting January 1, 2026, the bill requires the Department of Labor and Industrial Relations to annually calculate a tip credit amount that will be equal to 20% of the minimum wage. The bill continues the existing schedule of minimum wage increases, reaching $16.00 per hour in 2026 and $18.00 per hour in 2028. For tipped employees, this means their hourly wage can be calculated differently, allowing employers to pay a lower direct wage if the employee's tips make up the difference. Specifically, the combined amount a tipped employee receives from their employer and in tips must be at least 50 cents more than the applicable minimum wage. The bill represents an effort to provide a standardized, predictable method for determining tip credits that adjusts automatically with changes in the minimum wage, ensuring that tipped workers' total compensation keeps pace with broader wage increases.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=479&year=2026