HI SB320

Clarifies the definition of "wage" to exclude tips and gratuities for all purposes except section 387-2(b).

Establishes that employers must pay tipped employees at least $7.25 per hour beginning January 1, 2009.

Removes the previous provision allowing employers to pay tipped employees 25 cents below minimum wage if combined wages and tips exceeded minimum wage by 50 cents.

Requires that tipped employees' combined earnings from employer wages and tips must be at least 50 cents more than the applicable minimum wage.

Effective upon approval.