Hawaii to Raise Its Minimum Wage to $10.10 by 2018

Author: Michael Cardman, XpertHR Legal Editor

May 1, 2014

Hawaii is poised to become the fifth state to raise its minimum wage this year.

The state legislature has passed a bill, 2013 Bill Text HI S.B. 2609, that would raise Hawaii's minimum wage in four stages:

• To $7.75 per hour beginning January 1, 2015;
• To $8.50 per hour beginning January 1, 2016;
• To $9.25 per hour beginning January 1, 2017; and
• To $10.10 per hour beginning January 1, 2018.

The bill also would change how the tip credit works. Currently, an employer may pay a tipped employee 25 cents less than the Hawaii minimum wage if the combined amount the employee receives from the employer and in tips is at least 50 cents above the Hawaii minimum wage. Starting January 1, 2015, the bill would allow an employer to pay a tipped employee 50 cents less than the Hawaii minimum wage (and then raise that amount to 75 cents starting January 1, 2016) if the combined amount the employee receives from the employer and in tips is at least $7.00 above the Hawaii minimum wage.

Hawaii Gov. Neil Abercrombie applauded the bill's passage. If he signs the bill into law, Hawaii will become the fifth state to pass a law increasing the minimum wage in 2014, following Connecticut, Delaware, Minnesota and West Virginia. Maryland's legislature has also passed a bill; its governor has praised the bill's passage but has not yet signed it.