RELATING TO THE MINIMUM WAGE.

HB84

HOUSE OF REPRESENTATIVES

H.B. NO.

84

THIRTY-THIRD LEGISLATURE, 2025

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.
�
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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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.
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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 further 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 reduce by
$1.00 per hour the planned minimum wage increase that is scheduled to begin on
January 1, 2026, and repeal certain minimum wage and tip credit increases after
January 1, 2026, which ensures fairness for workers while providing necessary
support to sustain small businesses and stabilize Hawaii's economy.
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By prioritizing economic growth and the
welfare of Hawaii's residents, this Act aims to promote a more sustainable path
forward.

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

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(10)
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[
$16.00
]
$15.00

per hour beginning January 1, 2026[
; and

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(11)
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$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)
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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;
and

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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
],

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:

Reduces
the minimum wage increase beginning 1/1/2026, to $15.00 per hour and repeals
certain minimum wage and tip credit increases after 1/1/2026.

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