HI HB684

Phases out Hawaii's tip credit system, which currently allows employers to pay tipped employees below minimum wage by counting tips toward their wages

Reduces the tip credit from $1.25 per hour (current rate as of January 2024) down to $0.75 in 2025, $0.50 in 2027, $0.25 in 2029, and eliminates it entirely by January 1, 2031

Requires that tipped employees receive at least $7.00 more than the applicable minimum wage when combining employer wages and tips

Amends Section 387-2 of Hawaii Revised Statutes to implement the gradual reduction schedule

Takes effect upon approval by the Governor