State of Hawaii House and Senate leaders have reached a tentative agreement to raise the minimum wage to $10 per hour by January 2018. Currently the state's minimum wage is $7.25 per hour, and under the proposed bill, there will be gradual increases over the next four years. However, Senator Clayton Hee, the chairman of the Senate Judiciary and Labor Committee, stated that he would like to debate the tip credit amount before moving the bill forward. Tip credit is the amount that a business can deduct from the minimum wage for waiters and other workers who earn tips. Currently, Hawaii has a 25 cent tip credit and this new bill would increase tip credit to 75 cents. Senator Hee stated that he would like to eliminate the tip credit entirely, while several other senators and congressmen have stated that they would like to make the amount higher than 75 cents. Hee stated, "In my opinion, a tip credit is a revenue enhancement for employers. It works like a tax credit but it's not a tax. So my view is if the Legislature wishes to provide some kind of financial relief in the form of a tax credit, it ought to do so, straight up, and not disguise it as a tip credit."
According to the state Department of Labor and Industrial Relations, the average tipped worker in the state of Hawaii earned $9.87 per year including tips. Waiters and servers earn an average of $12.64 per year. The average for all workers is $21.53 per hour.
Source: Honolulu Star Advertiser, 2-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
