Adjusts the tip credit rate in Hawaii to align with future minimum wage increases.

Hawaii SB604 amends the minimum wage law to adjust the tip credit rate. Starting January 1, 2026, the Department of Labor and Industrial Relations will calculate an adjusted tip credit amount annually, equal to 20% of the effective minimum wage. This change ensures the combined amount of wages and tips is at least 50 cents more than the applicable minimum wage. The bill also repeals outdated provisions and updates the minimum wage schedule through 2028.

Adjusts the tip credit rate in Hawaii to align with future minimum wage increases.

Hawaii SB604 amends the minimum wage law to adjust the tip credit rate. Starting January 1, 2026, the Department of Labor and Industrial Relations will calculate an adjusted tip credit amount annually, equal to 20% of the effective minimum wage. This change ensures the combined amount of wages and tips is at least 50 cents more than the applicable minimum wage. The bill also repeals outdated provisions and updates the minimum wage schedule through 2028.