Minimum Wage Increase Begins Jan. 1

Minimum wage in Hawai’i will increase by 50 cents at the start of the New Year, according to the Hawai’i State Department of Labor & Industrial Relations.

The DLIR announced Wednesday that through Act 82, Session Laws of Hawai’i, minimum wage for most employers will increase to $7.75 per hour, beginning Jan. 1.

“This increase will boost consumer demand and jobs because minimum and low-wage workers spend most if not all their increased wages and therefore will generate economic activity and contribute to Hawai’i’s strengthening economy,” said DLIR Director Dwight Takamine.

Along with the announcement of an increase in minimum wage in the coming weeks, is a scheduled plan for minimum wage increases yearly for the next three years.

Minimum wage will rise to $8.50 per hour on Jan. 1, 2016, $9.25 per hour on Jan. 1, 2017, and $10.10 per hour on Jan. 1, 2018.

Employees who hold tipped positions will be paid 50 cents below the minimum wage amount beginning on Jan. 1, 2015 and 75 cents below the minimum wage amount beginning Jan. 1, 2016. These amounts are good as long as the combined amount that the employee receives from their employer and tips is a minimum of $7.00 more than the minimum wage amount.

As of October, Hawai’i’s unemployment rate was 4 percent in October, and the labor force included 669,850 individuals.

More information about minimum wage and tip credit can be found by visiting the State of Hawai’i’s Wage Standards Division webpage.