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

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:

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 1 – Article 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.