HI HB1372

Freezes the tip credit at $1.00 per hour beginning October 1, 2022, eliminating previously scheduled increases to $1.25 (January 1, 2024) and $1.50 (January 1, 2028)

Establishes an annual adjustment mechanism beginning January 1, 2024, requiring the Department of Labor to calculate an adjusted tip credit equal to 20 percent of the effective minimum wage each year

Maintains the requirement that combined wages from employer and tips must exceed the minimum wage by at least 50 cents, or $7.00 more beginning January 1, 2015

Applies to tipped employees in Hawaii whose combined earnings from wages and tips must meet or exceed the adjusted minimum wage thresholds specified in the statute