HI HB2350

Amends Hawaii's tip credit law to set the tip credit amount at 25% of the minimum wage beginning January 1, 2027, replacing the previously scheduled fixed amounts of $1.25 (2024) and $1.50 (2028) per hour.

Requires the Department of Labor and Industrial Relations to calculate and publish the adjusted tip credit amount by December 31 each year, effective the following January 1.

Maintains existing requirement that tipped employees must receive combined wages and tips totaling at least $7.00 more than the applicable minimum wage to qualify for the tip credit.

Hawaii's minimum wage is scheduled to increase to $16.00 per hour on January 1, 2026, and $18.00 per hour on January 1, 2028, which would make the tip credit $4.00 and $4.50 respectively under the new formula.