Overview of Hawaii's Minimum Wage Requirements
As of January 1, 2024, the minimum wage in the state of Hawaii is $14.00 per hour. This is part of a series of planned increases, with the next one set to raise the minimum wage to $16.00 per hour on January 1, 2026, and then to $18.00 per hour on January 1, 2028. For tipped employees, employers may pay less than the standard minimum wage under certain conditions. If a tipped employee regularly receives more than $20 a month in tips and the combined amount of wages and tips is more than the applicable minimum wage, the employer can use a maximum tip credit of $1.25 per hour.
In terms of overtime, it is generally required after 40 hours worked in a workweek, with some exceptions for state or county public construction projects. More details on this can be found in Hawaii’s State Legislature, Section 387-3, HRS and Section 104-2(c), HRS.
Understanding Local Minimum Wage Variations
The minimum wage requirements are consistent across all counties in Hawaii, including Honolulu, Hawaii, Maui, Kauai, and Kalawao Counties. As of February 12, 2024, the minimum wage in all these counties is $14.00 per hour. This rate is set to increase to $16.00 per hour from January 1, 2026, and further to $18.00 per hour from January 1, 2028.
For tipped employees, employers may pay below the minimum wage under certain conditions. If the tipped employee regularly receives more than $20 a month in tips and the combined amount of wages and tips is more than the applicable minimum wage, the employer may pay an adjusted minimum wage of $12.75 per hour. The maximum tip credit an employer can take is $1.25 per hour.
Minimum Wage Eligibility and Exemptions
In the state of Hawaii, all employees are generally eligible for the minimum wage. However, there are certain exemptions to these rules. Individuals who receive a guaranteed compensation of $2,000.00 or more per month, regardless of whether they are paid weekly, biweekly, or monthly, are exempt from the minimum wage, overtime, and record-keeping provisions of the law.
This exemption also applies to individuals in a bona fide executive, administrative, supervisory, or professional capacity, as defined under Sections 12-20-2 to 12-20-5, Hawaii Administrative Rules. For more details on these exemptions, you can refer to the Wage and Hour FAQs on the Hawaii government's official website.
Minimum Wage Considerations and Compliance Tips
As a food business employer in Hawaii, it's crucial to understand the key minimum wage legal and compliance considerations. Employers can claim a maximum tip credit against the minimum wage of $1.25, which means the minimum cash wage that employers are required to pay tipped employees is $12.75. However, this is only permissible if the combined amount the employee receives from the employer and in tips is at least $7.00 more than the applicable minimum wage.
In terms of overtime, it is required when an employee works more than 40 hours in a workweek. Compensatory time instead of overtime is recognized, but only for salaried employees and must be taken within the same pay period in which the overtime is worked. The compensatory time is earned at one and one-half times the number of overtime hours worked. If an employee works through a designated break, the employer is required to compensate the employee for the time as hours worked.
FAQs
- What is the current minimum wage in Hawaii? As of January 1, 2024, the minimum wage in Hawaii is $14.00 per hour.
- Are there any exemptions to the minimum wage in Hawaii? Yes, individuals who receive a guaranteed compensation of $2,000.00 or more per month are exempt from the minimum wage, overtime, and record-keeping provisions of the law.
- What is the minimum wage for tipped employees in Hawaii? The minimum cash wage that employers are required to pay tipped employees is $12.75 per hour, provided the total wages and tips are at least $7.00 more than the applicable minimum wage.
Information Source Links
- Hawaii Department of Labor and Industrial Relations
- Minimum Wage Notice
- Tip Credit Notice and Easy Reference Guide
- Section 387-3, Hawaii Revised Statutes
- Section 104-2(c), HRS
- Wage and Hour FAQs
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