REPORT TITLE:
Tip Credit


DESCRIPTION:
Amends the current minimum wage law applicable to tipped
employees by deeming the wage to be increased, if the employee is
paid not less than the cash wage required to be paid the employee
on the effective date of this Act.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            302         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1998                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO MINIMUM WAGES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this Act is to amend the base
 
 2 reference amount an employer must contribute when determining the
 
 3 minimum wage of a tipped employee.  This Act changes the base
 
 4 from twenty cents below the applicable minimum wage to not less
 
 5 than the cash wage required to be paid such an employee on the
 
 6 effective date of this Act.
 
 7      SECTION 2.  Section 387-2, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "�387-2 Minimum wages.  Except as provided in section 387-9
 
10 and this section, every employer shall pay to each employee
 
11 employed by the employer wages at the rate of not less than
 
12 [$3.85 per hour beginning January 1, 1988, $4.75 per hour
 
13 beginning April 1, 1992, and] $5.25 per hour beginning January 1,
 
14 1993.  The hourly wage of a tipped employee may be deemed to be
 
15 increased on account of tips if the employee is paid not less
 
16 than [twenty cents below the applicable minimum wage] the cash
 
17 wage required to be paid such an employee on the date of the
 
18 enactment of this section by the employee's employer and the
 
19 combined amount the employee receives from the employee's
 

 
Page 2                                         302         
                                     H.B. NO.           
                                                        
                                                        

 
 1 employer and in tips is at least fifty cents more than the
 
 2 applicable minimum wage."
 
 3      SECTION 3.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 4.  This Act shall take effect upon its approval.
 
 6 
 
 7                           INTRODUCED BY:  _______________________