Current Minimum Wage on Tipped Workers in Hawaii

1. What is the current minimum wage for tipped workers in Hawaii?


The current minimum wage for tipped workers in Hawaii is $9.35 per hour.

2. Is there a difference between the tipped minimum wage and regular minimum wage in Hawaii?


Yes, there is a difference between the tipped minimum wage and regular minimum wage in Hawaii. As of 2021, the regular minimum wage in Hawaii is $10.10 per hour, while the tipped minimum wage is $9.35 per hour. This means that employees who receive tips can be paid a lower hourly wage as long as it brings their total earnings to at least the regular minimum wage of $10.10 per hour. This tip credit system allows employers to offset some of their employees’ wages with tips received from customers. However, if an employee’s tips do not bring their total earnings up to the regular minimum wage, the employer is required to make up the difference.

3. How much do tipped workers make per hour in Hawaii?


In Hawaii, the minimum wage for tipped workers is $9.35 per hour.

4. Has the minimum wage for tipped employees increased in Hawaii recently?


Yes, the minimum wage for tipped employees in Hawaii has recently increased. As of January 1, 2020, the minimum wage for tipped employees is $9.35 per hour, which is an increase from the previous minimum wage of $9.00 per hour in 2019. This increase was part of a gradual increase being implemented by Hawaii’s legislature to eventually reach a minimum wage of $12.00 per hour for tipped employees by January 1, 2024.

5. Are there any pending changes to the tipped minimum wage in Hawaii?


Yes, the tipped minimum wage in Hawaii is set to increase on January 1st each year until it reaches $12 per hour by 2024. Starting January 1st, 2022, the tipped minimum wage will be $9.60 per hour. Future increases will be dependent on the inflation rate and determined by the state Department of Labor and Industrial Relations.

6. Can a tipped worker afford a living wage in Hawaii?


It may be challenging for a tipped worker to afford a living wage in Hawaii, as the cost of living in Hawaii is significantly higher than the national average. This makes it difficult for workers who rely on tips to cover their basic expenses and maintain a decent standard of living. Additionally, even if their base hourly wage is below the minimum wage, tipped workers are still required by law to make up the difference between their tips and the minimum wage through a “tip credit,” which may not always be enough to meet their needs. According to research from MIT, an estimate of $23.22 per hour would be needed for a single individual working full-time to afford basic necessities such as food, housing, transportation, and healthcare in Hawaii.

Ultimately, whether or not a tipped worker can afford a living wage in Hawaii will depend on various factors such as their specific job and location within the state, their personal expenses and lifestyle choices, and any additional benefits or support they may receive. However, it is clear that because of the high cost of living in Hawaii, tipped workers may face significant challenges when it comes to affording a livable income solely through tips.

7. How does Hawaii’s minimum wage for tipped employees compare to neighboring states?

Hawaii’s minimum wage for tipped employees is the same as the general minimum wage set by the state, which is currently $10.10 per hour.

This is slightly higher than neighboring states California and Oregon, which have a tipped minimum wage of $12.00 and $11.50 respectively. However, it is lower than Washington, which has a minimum wage for tipped employees of at least $13.69 per hour. It should be noted that these states also have different regulations and exemptions for tipped employees, so direct comparison may be difficult.

In general, Hawaii’s minimum wage for tipped employees falls in the middle among its neighboring states, with some states having higher rates and others having lower rates.

8. Are employers required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in Hawaii?


Yes, employers are required to make up the difference if a tipped worker’s wages (which include tips) fall below the standard minimum wage of $10.10/hour in Hawaii. This difference between the standard minimum wage and the tipped minimum wage is known as a “tip credit,” and employers must ensure that employees earn at least the full standard minimum wage when taking into account tips received. If a worker’s total wages (including tips) do not reach the standard minimum wage, the employer is responsible for making up the difference.

9. Do cities within Hawaii have their own separate tipped minimum wage rates or is it consistent throughout the state?


The tipped minimum wage rate is consistent throughout the state of Hawaii and is determined by the state legislature.

10. Has there been any discussion of increasing the minimum wage for tipped employees in Hawaii?


Yes, there have been ongoing discussions and efforts to increase the minimum wage for tipped employees in Hawaii. In 2019, a bill was introduced in the state legislature to gradually increase the tipped minimum wage from $0.50 per hour to $1.50 per hour by 2025. However, the bill did not pass.

In 2021, another bill was introduced that would increase the minimum wage for tipped employees to at least 60% of the general minimum wage. This bill is still being considered by the state legislature.

Additionally, labor unions and worker advocates continue to push for a higher minimum wage for tipped employees in Hawaii, citing concerns about economic inequality and cost of living in the state.

11. Does Hawaii have a different minimum wage for servers versus other types of tipped workers?


Yes, Hawaii has a different minimum wage for servers and other types of tipped workers. As of January 1, 2021, the minimum wage for tipped workers in Hawaii is $9.25 per hour. However, if a worker’s tips plus the hourly wage do not add up to at least $10.10 per hour (the statewide minimum wage for non-tipped workers), the employer is required to make up the difference. This is known as the “tip credit rule.”

12. How does Hawaii’s current tipped employee minimum wage compare to federal standards and neighboring states’ rates?

Hawaii’s current tipped employee minimum wage is $9.35 per hour, which is higher than the federal tipped employee minimum wage of $2.13 per hour. It is also higher than the neighboring states of California and Nevada, which have a tipped employee minimum wage of $12 per hour and $8.75 per hour, respectively. However, it is lower than Oregon’s tipped employee minimum wage of $12.50 per hour and Washington’s tipped employee minimum wage of $13.69 per hour.

13. In Hawaii, are employers allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees?


Yes, Hawaii employers are allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees. Employers can take a tip credit of up to $0.75 per hour towards meeting the minimum wage requirement, as long as the employee’s hourly wages and tips combined equal at least $10.10 per hour. In other words, if an employee is receiving tips that bring their total pay up to or above the minimum wage, the employer may pay them a lower direct wage rate. However, if an employee does not earn enough in tips to meet the minimum wage, the employer must make up the difference. It is important to note that tipped employees must still receive at least $7.00 per hour in direct wages from their employer.

14. Is there a plan to increase the tip credit percentage in Hawaii, which currently has one of the lowest rates nationwide?


There are no current plans to increase the tip credit percentage in Hawaii. However, this may be subject to change depending on future legislation and labor market conditions.

15. Are there exemptions from paying the state’s established tip credit rate for certain industries or professions in Hawaii?

There are no exemptions from paying the state’s established tip credit rate in any industry or profession in Hawaii. All employers who wish to take a tip credit must comply with the state’s minimum wage laws and regulations.

16. Can legislators override local laws regarding the establishment of a separate tipped worker minimum wage rate in [State?


It depends on the specific laws and regulations in [State]. Generally, state legislators have the power to pass laws that supersede local laws, but this may not always be the case for establishing a separate tipped worker minimum wage rate. It is best to consult with a legal expert familiar with the laws and regulations in [State] to get a clear answer on this question.

17. Has Hawaii recently adjusted its tip pooling laws affecting server wages?

Yes, Hawaii updated its tip pooling laws in 2018. Under the new law, employers are prohibited from retaining tips earned by employees in any form or using tips as a credit toward the minimum wage requirement. Employers must also inform employees of any tip pooling arrangements and all tips must be distributed no less frequently than at the end of each pay period. Additionally, the law prohibits employer from requiring tipped employees to share tips with non-tipped employees.

18. How do Hawaii’s current hourly wages for non-tipped workers compare with those applied specifically to restaurant personnel?

According to the U.S. Bureau of Labor Statistics, as of May 2020, Hawaii’s average hourly wage for all non-tipped workers was $27.63. This is significantly higher than the federal minimum wage of $7.25 per hour.

For restaurant personnel specifically, Hawaii has a minimum wage of $10.10 per hour, which is also higher than the federal minimum wage. However, many restaurants in Hawaii pay their employees at least the state’s general minimum wage of $11.20 per hour.

In addition to the hourly wages, restaurant personnel may also receive tips from customers that can supplement their income. The tipped minimum wage in Hawaii is $9.35 per hour.

Overall, Hawaii’s current hourly wages for non-tipped workers are significantly higher than the federal minimum wage and also higher than the state’s specific minimum wages for restaurant personnel.

19. In Hawaii, are separate restaurants and other establishments categorized differently with regards to applying differing hourly rates for employees who receive tips?


Yes, in Hawaii, restaurants and other establishments are categorized differently for the purpose of determining minimum wage rates for employees who receive tips. There are three categories:

1. Tipped Employees: This category includes workers who regularly receive at least $20 a month in tips. These employees are subject to a lower minimum wage rate of $9.35 per hour.

2. Service or Customarily Tipped Employees: This category includes workers who regularly receive tips but can also perform non-tipped work, such as servers or bartenders who also do cleaning duties. These employees are subject to a lower minimum wage rate of $8.50 per hour.

3. Non-Tipped Employees: This category includes workers who do not regularly receive tips, such as kitchen staff or janitors. These employees are subject to the regular minimum wage rate of $10.10 per hour.

Employers must classify their employees according to these categories and pay them accordingly. It is illegal for employers to force tipped employees to share their tips with non-tipped employees, except in limited circumstances outlined by state law.

20 Where can I access (or has anyone correlated) information about how each of the US states and territories have approached minimum wage laws for tipped workers?


The National Employment Law Project (NELP) has a database with information on minimum wage laws for tipped workers in each of the US states and territories. Additionally, NELP has a fact sheet on the history and current state of tipped minimum wage laws in the US, which includes information on individual state approaches. Other resources for information on state-specific minimum wage laws for tipped workers include:

1. Department of Labor websites for each state – these typically have information on minimum wage laws, including those for tipped workers.

2. State labor organizations or advocacy groups that focus on worker’s rights may also have information on minimum wage laws for tipped workers specific to their state.

3. The National Conference of State Legislatures (NCSL) has an overview of current state laws regarding tipped employees, including minimum wage rates and tip credit allowances.

4. The Economic Policy Institute (EPI) has reports and data on minimum wages by state, including information on tipped workers.

5. ProPublica’s “Tipping Point” project has a searchable map where you can compare minimum wage rates and tip credit policies across different states.

It’s important to note that while there are federal guidelines for minimum wage laws, individual states may have their own regulations and exceptions that impact how much employers must pay their tipped employees. It is best to consult multiple sources and confirm with official government resources to ensure accurate and up-to-date information.