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Hawaii: State Increases Minimum Wage to $10.10

By Susan R. Heylman  5/28/2014
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Hawaii has enacted a minimum wage bill that will gradually increase the state’s current minimum wage of $7.25 per hour to $10.10 per hour over the next four years. Under Senate Bill 2609, the first increase, raising wages to $7.75 per hour, will begin on Jan. 1, 2015. That rate will increase to $8.50 per hour beginning on Jan. 1, 2016; to $9.25 per hour beginning Jan. 1, 2017; and then to $10.10 per hour beginning Jan. 1, 2018.

The legislation was signed by the governor on May 23, 2014, making Hawaii the third state this year to raise its minimum wage to $10.10 an hour, following Connecticut and Maryland.

The minimum wage bill also increases the state’s tip credit. It currently is set at 25 cents per hour, and it will increase to 50 cents per hour beginning Jan. 1, 2015 and to 75 cents per hour beginning Jan. 1, 2016. The tip credit may be applied to reduce the hourly minimum wage, provided that the combined amount the employee receives from the employer and in tips is at least $7.00 more than the applicable minimum wage.

The legislature passed the minimum wage bill on May 1, and it was sent to Governor Neil Abercrombie on May 2. The law took effect upon the governor’s approval.

Susan R. Heylman, J.D., is a freelance legal writer and editor based in the Washington, D.C., area.
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