HI HB479

Increases the tip credit amount for tipped employees to 20% of the applicable minimum wage beginning January 1, 2026

Replaces the fixed tip credit amounts of $1.25 per hour (2024) and $1.50 per hour (2028) with the new percentage-based calculation

Requires the Department of Labor and Industrial Relations to annually calculate and adjust the tip credit amount based on the current minimum wage

Maintains existing requirement that tipped employees must receive a combined amount from employer wages plus tips that is at least $7.00 more than the applicable minimum wage

Hawaii's minimum wage schedule increases to $16.00/hour (January 2026) and $18.00/hour (January 2028), making the tip credit $3.20 and $3.60 respectively under the new formula