HI HB684

Phases out the tip credit over six years by gradually reducing the minimum tipped wage employers must pay from $1.25 per hour (as of January 1, 2024) to $0 per hour by January 1, 2031.

Establishes new minimum tipped wage rates: 75 cents per hour beginning January 1, 2025; 50 cents per hour beginning January 1, 2027; 25 cents per hour beginning January 1, 2029; and elimination of tip credit beginning January 1, 2031.

Requires employers to ensure tipped employees receive a combined amount from wages and tips totaling at least $7.00 more than the applicable minimum wage throughout the phase-out period.

Eliminates the previous requirement for only a 50-cent increase above minimum wage, replacing it with a $7.00 increase to protect tipped worker income.