HB 1201 Summary

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

• Indexes minimum wage to 75 percent of the median hourly wage for all occupations in Hawaii beginning January 1, 2025, with annual adjustments calculated by the department on September 30 each year.

• Allows employers to claim a tip credit of $0.50 per hour for every dollar of tips earned above the minimum wage plus $5.00 per hour, provided tipped employees customarily receive more than $20.00 per month in tips and the combined wage and tips equals at least $5.00 above minimum wage.

• Requires the Department of Taxation to share employer withholding information with the Department of Labor and Industrial Relations to enforce tip credit compliance and to develop an online tool by January 1, 2022 to help employers determine wage compliance.

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