Hawaii’s current minimum cash wage is $10.10 per hour. This is according to HI Wage Standards Division – Minimum Wage and Overtime.
Tip Minimum Wage
As a matter of minimum wage compliance, Hawaii allows employers to credit $0.75 of the tips earned by a tipped employee towards its obligation to pay minimum wage when the tipped employee earns at least $7.00 in tips.
This results in a minimum wage rate for qualifying tipped employees of $9.35.
At the same time, it also means that the tipped employee must earn at least $17.10 per hour when wages, tips, and the tip credit are added.
Note that these employees are often part of the hospitality industry.
If an employee does not earn at least $16.25 when wages, tips, and the tip credit are added, the employer cannot take the tip credit and must pay the tipped employee the standard minimum wage of $10.10 per hour.
Employees are considered tipped employees and may be paid the tipped wage rate if they work in an occupation where they customarily and regularly receive more than $20 a month in tips and, in fact, receive more than $20 a month in tips.
To get more information, check HI Admin Rules 12-20-11(e).
A tipped employee will remain as such even when the employee’s tips drop below $20 a month due to sickness, vacation, or the like.
Additionally, an employee can be determined a “tipped” employee during the beginning or end of employment if that employee receives more than $20 in tips during a particular week or weeks of a month.
Employers are required to inform their employees at the time of hiring if they will be paid the tipped wage rate.
Once employers have decided to pay employees the tipped wage, they may discontinue paying the tipped wage only if it is permanent and not created to avoid legal requirements.
If an employer changes its tipped wage policy and other pertinent minimum wage regulations, it must notify employees of the change either in writing or posted in the workplace prior to the next pay period.
When an employer has an employee working in two or more different occupations for that employer, the employer may only pay the tipped wage rate for hours worked in the occupation where the employee customarily and regularly received a minimum of $20 a month in tips.
To know more, see HI Admin Rules 12-20-11(b).
Tip Pooling and Sharing
Hawaii law allows employees to participate in tip pooling, although it is unclear whether an employer may require their participation.
When they participate in tip pool or splitting arrangements, employees are only deemed to be a tipped employee to the extent of their proportionate share of the tips received.
When a tip-pooling arrangement has been mutually agreed upon by the employees, and the employer redistributes the tips among the employees, the actual amount received by each employee is to be considered tips for that employee.Check HI Admin Rules 12-20-11(a) for more information.
Employees with Disabilities
As of June 16, 2021, Hawaii’s minimum wage laws do not allow employers to pay employees with disabilities a subminimum wage.Instead, employers must pay employees with disabilities the standard minimum wage for all hours worked. This is according to HI Senate Bill 793 (HI Statute §387-9(a)(2)).
Hawaii minimum wage laws do not allow employers to pay trainees a wage rate lower than the standard minimum wage.
Hawaii law does not permit employers to pay apprentices a wage rate less than the standard minimum wage.
They must pay employees at minimum the standard minimum wage set forth by the federal Fair Labor Standards Act unless there are other federal or state requirements that they are paid more.See HI Admin Rules 12-30-6(2)(E) for more information.
Hawaii’s minimum wage laws allow the Department of Labor and Industrial Relations to issue rules providing for special certificates that allow employers to pay learners a subminimum wage rate that is lower than the standard minimum wage.
See HI Statute §387-9(a)(1) for more information.
Hawaii minimum wage laws do not allow employers to pay student learners a wage rate lower than the standard minimum wage.
Hawaii’s minimum wage laws allow the Department of Labor and Industrial Relations to issue rules providing for special certificates that allow employers to pay certain student workers who work part-time a subminimum wage rate that is lower than the standard minimum wage. HI Statute §387-9(a)(1)
Implications of Hawaii’s Labor Laws and Minimum Wage Rates
There are many implications of the current minimum wage, the prospective rates, as well as the labor laws that the State of Hawaii implements.
The good news is that more low-income families will benefit from how wage increase proposals are currently planned out in Hawaii through minimum wage policies, with the hope that it will not face opposition from businesses and rich business owners.
It is expected that by 2024, minimum wage workers in the state will receive a total of more than 1 billion dollars in terms of additional wages.
This is a welcome development, especially since the cost of living in Hawaii is high. In fact, it has the highest among all the states.
Minimum wage hikes are something that people lawmakers and the Hawaii Senate (25-Member Senate) may want to continue considering.
After all, based on published US-based minimum wage research, the wage earners in Hawaii need to cope.
The study by researchers reveals that a family unit in Hawaii lives from paycheck to paycheck, managing survival budgets against housing costs and other forms of the exorbitant cost of living.
Studies also suggest that there is a need to see negative employment effects once more occupations are affected by an ineffective minimum wage proposal.
Note that these increases in studies and essential reporting hope to serve more of the people of Hawaii as they continue to produce smart ideas and results.
These include over 70% of young adults being affected positively if the minimum wage were to be increased.