State Senator Clayton Hee and State Representative Mark Nakashima have advanced new bills that would increase that state's minimum wage. Under House Bill 2580, there would be a gradually increase the minimum wage until it reaches $9.50 an hour by January 2017 and the wage would be adjusted in future years based on the Consumer Price Index. The 25-cent tip credit would be eliminated. Under Senate Bill 2609, there would be a gradual raise of the minimum wage to $10.10 an hour by January 2017. Future increases would be tied to the Consumer Price Index. The tip credit would be repealed. Tip credit is the amount that business can deduct from restaurant staff and other workers who earn tips and has been one of the main focuses of argument in past minimum wage debates in Hawaii.
The state's minimum wage is $7.25 per hour and has not increased since 2007. The tip credit is currently only 25 cents. The Chamber of Commerce of Hawaii and the Hawaii Food Industry Association have warned that an increase in minimum wage could mean that businesses will lay off workers or raise prices.
Source: Honolulu Star Advertiser, 2-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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