Bill > HB684

This bill proposes to gradually eliminate the tip credit in Hawaii, which currently allows employers to pay tipped workers below the minimum wage by counting their tips as part of their wages. The bill modifies the existing law to progressively reduce the tip credit amount from 25 cents per hour in the current law to zero cents per hour by January 1, 2031. Specifically, the bill establishes a phased reduction schedule: $1.00 per hour in October 2022, $1.25 per hour in January 2024, then decreasing to 75 cents in January 2025, 50 cents in January 2027, 25 cents in January 2029, and finally zero cents in January 2031. Throughout this transition, employers must still ensure that the combined amount an employee receives from wages and tips is at least $7.00 more than the applicable minimum wage. The purpose of this legislation is to increase the income of tipped workers by ultimately requiring all employers to pay the full minimum wage without relying on tips to meet wage requirements, providing more consistent and predictable earnings for workers in industries like restaurants and hospitality.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=684&year=2026