HB 1197 Summary

• Increases Hawaii's minimum wage to $12.00 per hour on January 1, 2020; $13.50 per hour on January 1, 2021; and $15.00 per hour on January 1, 2022.

• Indexes minimum wage to 75 percent of the median hourly wage for all occupations in Hawaii, with the Department of Labor calculating the annual rate on September 30 each year starting in 2022.

• Replaces the previous tip credit system with a new structure allowing employers to reduce wages by up to 50 cents per hour for every dollar of tips above the applicable minimum wage plus $5.00 per hour, if the employee customarily receives more than $20.00 per month in tips.

• Requires employers using the tip credit to inform employees in advance with relevant documentation.

• Takes effect July 1, 2019.