HI HB1288

Repeals the tip credit provision in Hawaii law that allows employers to pay tipped employees less than the minimum wage.

Eliminates subsection (b) of Section 387-2, Hawaii Revised Statutes, which previously permitted tipped employees to be paid as little as 25 cents per hour if combined wages and tips met minimum thresholds.

Requires all employers to pay tipped employees the same full minimum wage as other employees, with the minimum wage schedule remaining at $14.00 per hour (January 1, 2024), $16.00 per hour (January 1, 2026), and $18.00 per hour (January 1, 2028).

Legislature finds that the tip credit has contributed to sexual harassment in the workplace, inadequate earnings for service industry workers, and has historical origins tied to avoiding payments to freed slaves after the Civil War.

Takes effect upon approval.