HB 2408 Summary

• Maintains Hawaii's current minimum wage schedule at $10.10 per hour beginning January 1, 2018, with no changes to the existing wage tiers from 2003-2018.

• Establishes automatic annual minimum wage adjustments beginning July 1, 2027, calculated based on the three-year average consumer price index (CPI-U) growth rate.

• Rounds adjusted minimum wage rates to the nearest 5 cents each year, effective on the following January 1.

• Implements the same automatic adjustment mechanism for tip credit amounts, ensuring tip credits adjust proportionally with minimum wage increases.

• Prohibits decreases to the minimum wage or tip credit amounts; if CPI-U adjustment would lower rates, wages remain at the most recently established level.