HB684 • 2026

RELATING TO INCOME.

Labor

Active

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

Sponsor: KAPELA, GRANDINETTI, PERRUSO, POEPOE
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 on the timeline or exact amounts for phasing out the tip credit beyond what is already amended in section 387-2(b).

Phased Elimination of Tip Credit

This bill aims to phase out the tip credit, which allows employers to pay tipped employees less than the minimum wage if they receive enough in tips.

What This Bill Does

Amends Hawaii Revised Statutes section 387-2(b) to gradually reduce the amount by which an employer can pay a tipped employee below the state's minimum wage until it is completely eliminated.

Who It Names or Affects

Tipped workers who currently receive lower wages because they are expected to make up the difference with tips.
Employers who rely on the tip credit system to reduce labor costs.

Terms To Know

Tip Credit: A provision that allows employers to pay certain employees less than the minimum wage if they receive enough in tips to make up the difference.
Phased Elimination: Gradually removing or reducing something over a period of time, step by step.

Limits and Unknowns

The bill does not specify what happens if tipped workers do not receive enough tips to meet the minimum wage requirement.
It is unclear how employers will adjust their business practices as they are required to pay more in wages without a corresponding increase in revenue from tips.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-01-21 H
Referred to LAB, FIN, referral sheet 2
2025-01-21 H
Introduced and Pass First Reading.
2025-01-17 H
Pending introduction.

Official Summary Text

RELATING TO INCOME.
Minimum Wage; Tip Credit
Implements a phased elimination of the tip credit.

Current Bill Text

Read the full stored bill text

HB684

HOUSE OF REPRESENTATIVES

H.B. NO.

684

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO INCOME
.

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

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SECTION 1.
�
The legislature finds that the tip credit
authorized by section 387-2, Hawaii Revised Statutes, allows employers to pay
certain employees at a rate below the state minimum wage by calculating tips as
a portion of the employee's wages.

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The purpose of this Act is to increase the
income of tipped workers by gradually phasing out the tip credit so that all
employers shall be required to pay all employees at least the minimum wage.

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SECTION
2
.
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Section 387-2, Hawaii Revised Statutes, is
amended by amending subsection (b) to read as follows:

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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)
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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;

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

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

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(6)
�
75
cents per hour beginning January
1, 2025;

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(7)
�
50
cents per hour beginning
January 1, 2027;

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(8)
�
25 cents per hour beginning January
1, 2029; and

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(9)
�
0 cents per hour beginning January
1, 2031,

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.
�

Statutory material to be repealed is bracketed and stricken.
�
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:

Implements
a phased elimination of the tip credit.

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