HI HB479

Establishes that the tip credit amount for tipped employees shall equal 20% of the applicable minimum wage, effective January 1, 2026, replacing the previous fixed amount of $1.25 per hour.

Requires the Department of Labor and Industrial Relations to calculate an adjusted tip credit amount annually beginning January 1, 2026, with each adjustment effective on the following January 1.

Maintains the requirement that the combined amount an employee receives from wages and tips must be at least $7.00 more than the applicable minimum wage.

Removes previously scheduled tip credit amounts of $1.25 per hour (effective January 1, 2024) and $1.50 per hour (effective January 1, 2028), replacing them with the formula-based calculation.

Takes effect upon approval.