HB 1201 Summary

• Increases Hawaii's minimum wage to $15.00 per hour by January 1, 2024, with interim increases to $12.00 (2022) and $13.50 (2023).

• Indexes minimum wage annually beginning 2024 to 75% of the median hourly wage for all occupations in Hawaii, calculated each September 30.

• Authorizes employers to claim a tip credit of $0.50 per hour for every dollar employees earn in tips above the minimum wage plus $5.00, provided tipped employees customarily receive over $20 monthly in tips and meet combined wage-plus-tips threshold of minimum wage plus $5.00.

• Requires the Department of Taxation to share employer tax withholding information with the Department of Labor and Industrial Relations for tip credit enforcement and to develop an online compliance tool by January 1, 2022.

• Requires employers using the tip credit to provide written notice to affected tipped employees.