RELATING TO THE MINIMUM WAGE.

HB1533

HOUSE OF REPRESENTATIVES

H.B. NO.

1533

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the minimum wage
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
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The legislature finds that residents and
businesses face significant financial challenges due to the rising cost of
living in Hawaii.
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While increases in the
minimum wage are intended to provide workers with greater financial stability,
such measures may unintentionally exacerbate the economic pressures on small
businesses and contribute to inflationary trends.

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The legislature further finds that Hawaii's
cost of living remains among the highest in the nation, driven by housing
expenses, transportation, and the import-dependent nature of the economy.
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Raising the minimum wage beyond current
levels risks escalating these costs further, as businesses may need to increase
prices to offset higher labor expenses.
�

This creates a cycle of rising costs that diminishes the intended
benefits of wage increases for workers while placing additional financial
burdens on families and individuals.

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The legislature also finds that
small businesses, the backbone of Hawaii's economy, face unique challenges in
adapting to wage increases.
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Many operate
with slim profit margins and lack the financial flexibility to absorb higher
labor costs without reducing staff hours, cutting positions, or closing their
doors altogether.
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In a state heavily
reliant on tourism and service-based industries, these impacts could ripple
through the broader economy, resulting in reduced job opportunities and
increased economic instability.

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The purpose of this Act is to repeal
the minimum wage and tip credit increases that are to occur on January 1, 2028,
which ensures fairness for workers while providing necessary support to sustain
small businesses and stabilize Hawaii's economy.

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SECTION
2
.
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Section 387-2,
Hawaii Revised Statutes, is amended to read as follows:

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"
�387-2
�
Minimum wages.
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(a)
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Except as provided in section 387-9 and this section, every employer
shall pay to each employee employed by the employer, wages at the rate of not
less than:

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(1)
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$6.25 per hour
beginning January 1, 2003;

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(2)
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$6.75 per hour
beginning January 1, 2006;

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(3)
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$7.25 per hour
beginning January 1, 2007;

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(4)
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$7.75 per hour
beginning January 1, 2015;

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(5)
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$8.50 per hour
beginning January 1, 2016;

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(6)
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$9.25 per hour beginning
January 1, 2017;

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(7)
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$10.10
per hour beginning January 1, 2018;

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(8)
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$12.00 per hour
beginning October 1, 2022;

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(9)
�
$14.00 per hour
beginning January 1, 2024;
and

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(10)
�
$16.00 per hour
beginning January 1, 2026[
; and

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(11)
�
$18.00 per hour
beginning January 1, 2028
].

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(b)
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The
hourly wage of a tipped employee may be deemed to be increased on account of
tips if the employee is paid no less than:

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(1)
�
25 cents;

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(2)
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50 cents per hour
beginning January 1, 2015;

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(3)
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75 cents per hour
beginning January 1, 2016;

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(4)
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$1.00 per hour
beginning October 1, 2022;
and

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(5)
�
$1.25 per hour
beginning January 1, 2024[
; and

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(6)
�
$1.50 per hour
beginning January 1, 2028
],

below the applicable minimum wage by the employee's
employer and the combined amount the employee receives from the employee's
employer and in tips is at least 50 cents more than the applicable minimum
wage; provided that beginning January 1, 2015, the combined amount the employee
receives from the employee's employer and in tips is at least $7.00 more than
the applicable minimum wage."

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SECTION 3.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION 4.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Minimum
Wage; Tip Credit

Description:

Repeals
the minimum wage and tip credit increases that are to occur on 1/1/2028.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.