RELATING TO THE TIP CREDIT.

HB479

HOUSE OF REPRESENTATIVES

H.B. NO.

479

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO THE TIP CREDIT
.

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

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SECTION
1
.
�
Section 387-2, Hawaii Revised Statutes, is
amended to read as follows:

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"
�387-2
�

Minimum wages[
.
]
; tip
credit.
�
(a)
�
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:

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

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

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

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

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

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

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

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

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

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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)
�
The hourly wage of a tipped employee
may be deemed to be increased on account of tips if the employee is paid [
no
]

not
less than:

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(1)
�
25 cents;

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

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

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

and

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(5)
�
[
$1.25 per hour
]
An amount
calculated pursuant to subsection (c) for each year
beginning January 1, [
2024;
]

2026,
[
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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(c)
�

Beginning January 1, 2026, and each year thereafter, the department
shall calculate an adjusted tip credit amount to be effective on the following
January 1.
�
The adjusted tip credit
amount shall be calculated by adjusting the effective tip credit amount to be
equal to twenty per cent of the effective minimum wage as determined pursuant
to subsection (a).
"

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SECTION 2.
�

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

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SECTION 3.
�

This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

DLIR; Tip
Credit; Minimum Wage; Employment

Description:

Beginning
1/1/2026, increases the tip credit to be twenty per cent of the minimum wage
and requires the Department of Labor and Industrial Relations to annually
calculate an adjusted tip credit amount.

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