Hawaii Minimum Wage Increase 2015

Effective January 1, 2015 the Hawaii minimum wage increases from to $7.25 to $7.75 per hour.  Under the current Hawaii minimum wage law, additional increases are expected, to $8.50 (in 2016), $9.25 (in 2017) and $10.10 per hour (in 2018.)

On May 23, 2014 Hawaii Governor Neil Abercrombie signed Senate Bill 2609 (Act 82) to increase the state minimum wage in tiers, ultimately reaching $10.10 per hour. a measure that incrementally increases the state’s minimum wage rate over the next four years and the tip credit over the next two years.

In an unusual move, the law also increases the tip credit to 50 cents in 2015 and 75 cents in 2016. This means that tipped employees can be paid just $7.25 per hour beginning in 2015. However, in order for this lower hourly rate to apply, the employee’s total tips and wages must be at least $7 per hour higher than the minimum wage, or $14.75 per hour.

With this increase, the HI minimum wage is higher than the federal minimum wage of $7.25 per hour. Most employees will be covered by both laws, and are therefore entitled to the higher hourly rate. The law requires that employers pay workers for all time worked, including any time spent on premises waiting for work.

According to the Hawaii Department of Labor and Industrial Relations, employers must keep payroll records for at least six years, including records of hours worked, rate of pay, overtime and deductions.

Hawaii Secretary of Labor Thomas E. Perez wholeheartedly supported the increase. In a local newspaper interview, he noted that minimum wage workers spend additional income locally on goods and services, which strengthens the local economy.