SB2647 - Wage and Hour Law; Tip Credit

• Amends Hawaii's tip credit law to replace the fixed 25-cent tip credit (unchanged since 1969) with a percentage-based tip credit tied to the minimum wage.

• Allows employers to reduce tipped employees' wages by a percentage of the applicable minimum wage (instead of the current flat 25 cents), provided the employee receives tips regularly.

• Maintains the requirement that combined tips and wages must equal at least 50 cents more than the applicable minimum wage for the tip credit to apply.

• Establishes an automatic adjustment mechanism so the tip credit will increase proportionally with future minimum wage increases, eliminating the need for separate legislative action.

• Takes effect upon approval.