HI HB2506

Accelerates Hawaii's minimum wage increase to $18.00 per hour starting January 1, 2027 (one year earlier than currently scheduled), with subsequent increases to $20.00 (2028), $22.00 (2029), and $24.00 per hour (2030).

Eliminates the tip credit that currently allows employers to pay tipped employees below minimum wage, requiring all tipped workers to receive the full minimum wage.

Establishes automatic annual minimum wage adjustments beginning September 30, 2030, calculated by the Department of Labor and Industrial Relations using either Hawaii's gross domestic product per capita or the consumer price index for urban Hawaii, whichever produces the higher rate.

Amends the guaranteed monthly compensation threshold that exempts employees from wage and hour requirements (current threshold of $4,000 per month to be replaced with a new amount to be determined).

Cites that a single adult in Hawaii requires $62,234 annually for self-sufficiency, while current minimum wage of $16.00 per hour yields only $33,280 annually for full-time work.