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HB524 • 2026

RELATING TO WAGES.

RELATING TO WAGES.

Labor Small Business
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
WARD, GARCIA, MURAOKA
Last action
2025-12-08
Official status
Carried over to 2026 Regular Session.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details about future changes or impacts beyond setting a cap at $15 per hour and adjusting the schedule for the tip credit increase.

Setting a Cap on Minimum Wage

This bill sets the minimum wage at $15 per hour and changes how much extra money employers can claim from tips to cover part of their employees' wages.

What This Bill Does

  • Sets the highest amount an employer must pay workers as $15 per hour.

Who It Names or Affects

  • Employers who pay workers hourly wages.
  • Workers who earn tips and have their employers claim part of those tips as credit against the minimum wage they must be paid.

Terms To Know

Minimum Wage
The lowest amount per hour that an employer is required by law to pay workers.
Tip Credit
An allowance for employers to claim a portion of tips earned by employees as credit against the minimum wage they must be paid.

Limits and Unknowns

  • The bill does not specify what will happen after January 1, 2026.
  • It is unclear how this change might affect workers' earnings beyond the set cap of $15 per hour.

Bill History

  1. 2025-12-08 D

    Carried over to 2026 Regular Session.

  2. 2025-01-21 H

    Referred to LAB, FIN, referral sheet 2

  3. 2025-01-21 H

    Introduced and Pass First Reading.

  4. 2025-01-17 H

    Pending introduction.

Official Summary Text

RELATING TO WAGES.
Small Business Caucus Package; Minimum Wage; Tip Credit
Caps the minimum wage at $15 per hour. Adjusts the schedule for the tip credit increase.

Current Bill Text

Read the full stored bill text 
HB524

HOUSE OF REPRESENTATIVES

H.B. NO.

524

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO WAGES
.

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

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

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"
�387-2
�

Minimum wages.
�
(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;

����
(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;

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

���
(10)
�
[
$16.00
]
$15.00

per hour beginning January 1, 2026[
; and

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

����
(b)
�
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:

����
(1)
�
25 cents;

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

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

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

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

����
(6)
�
$1.50 per hour
beginning January 1, [
2028,
]
2026,

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."

����
SECTION
2.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION
3.
�
This Act shall take effect upon its
approval.

INTRODUCED
BY:

_____________________________

Report Title:

Small
Business Caucus Package; Minimum Wage; Tip Credit

Description:

Caps the
minimum wage at $15 per hour.
�
Adjusts
the schedule for the tip credit increase.

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