Report Title:

Minimum Wage; Tipped Employees; Tip Credit

Description:

Incrementally raises the minimum wage tip credit for tipped employees. Establishes that the hourly wage of a tipped employee is deemed to be increased on account of tips if the employee is paid an amount that is not less than $1 in calendar year 2007, and $1.75 in calendar year 2008 and thereafter, below applicable minimum wage by the employee's employer and the combined amount the employee receives from the employer and in tips is at least 50 cents more than the applicable minimum wage.

HOUSE OF REPRESENTATIVES

H.B. NO.

2227

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to wages.

 

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

SECTION 1. Section 387-2, Hawaii Revised Statutes, is amended to read as follows:

"§387-2 Minimum wages. (a) Except as provided in section 387-9 and this section, every employer shall pay to each employee employed by the employer, wages at the rate of not less than:

(1) $6.25 per hour beginning January 1, 2003;

(2) $6.75 per hour beginning January 1, 2006; and

(3) $7.25 per hour beginning January 1, 2007.

(b) The hourly wage of a tipped employee may be deemed to be increased on account of tips if the employee is paid:

(1) Prior to January 1, 2007, not less than 25 cents;

(2) After December 31, 2006, not less than $1; or

(3) After December 31, 2007, not less than $1.75;

below the applicable minimum wage by the employee's employer and the combined amount the employee receives from the employee's employer and in tips is at least 50 cents more than the applicable minimum wage."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on June 1, 2006.

INTRODUCED BY:

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