RELATING TO TIP CREDIT.

SB2357

THE SENATE

S.B. NO.

2357

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to tip credit
.

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:

����
"
�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;

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

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

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

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

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

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

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

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

���
(10)
�
$16.00 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
]

not
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;
and

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

2027,
[
and

����
(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.

����
(c)
�

No later than December 31, 2026, and each year thereafter, the
department shall calculate an adjusted tip credit amount that shall take effect
on January 1 of the following year; provided that the adjusted tip credit
amount shall equal twenty-five per cent of the effective minimum wage pursuant
to subsection (a).
"

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Statutory material to be repealed is bracketed and stricken.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

DLIR; Tip
Credit; Annual Calculation

Description:

Beginning
1/1/2027, increases the tip credit amount to equal twenty-five per cent of the
minimum wage.
�
Requires the Department of
Labor and Industrial Relations to annually calculate the 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.