H.B. 28 Summary

• Adjusts the tip credit for tipped employees, reducing it to 50 cents per hour beginning January 1, 2022, and further reducing it to 25 cents per hour beginning January 1, 2023, through December 31, 2023.

• Completely repeals the tip credit effective January 1, 2024, eliminating the separate wage structure for tipped employees under Hawaii law.

• Removes the definition of "tipped employee" from Hawaii Revised Statutes Section 387-1, as the tip credit classification will no longer exist.

• Maintains current minimum wage rates through 2023, with the tip credit elimination taking effect on January 1, 2024.

• Takes effect July 1, 2021, except Part II (tip credit repeal) takes effect January 1, 2024.