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May 2022: Hawaii’s Minimum Wage to Raise in October 2022

24 May

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Update Applicable to:
All employers in the state of Hawaii

What happened?
On May 4, 2022, House Bill 2510 (HB 2510) passed both chambers and was sent to Governor Ige, which if signed, will increase the minimum wage for the state of Hawaii starting October 1, 2022.

What are the details?
Currently, Hawaii’s minimum wage rates are:

  • $10.10 – standard
  • $9.35 – tipped employees

Under the legislation, the first increase would be on October 1, 2022. The scheduled increases to the standard rate follow a somewhat odd schedule. Most states schedule yearly increases, often $1 at a time. But the Hawaii minimum wage schedule, if the law is enacted, would be as follows:

  • $12 – Oct. 1, 2022
  • $14 – Jan. 1, 2024
  • $16 – Jan. 1, 2026
  • $18 – Jan. 1, 2028

Meanwhile, the law would also increase the tip credit. It is currently $0.75. The change to the tip credit would be on a different schedule than the standard minimum wage increases in Hawaii, skipping 2026 altogether:

  • $1.00 – Oct. 1, 2022
  • $1.25 – Jan. 1, 2024
  • $1.50 – Jan. 1, 2028

For more information, please see the links below:

House Bill 2510 (HB 2510)

Legislation

Article 1Article 2

What do employers need to do?
Employers should review the links provided above, lookout for the passage of the new law, and prepare to make changes to their minimum wage to be in compliance with the law once signed by the governor.

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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