Hawaii Gov. Abercrombie signs bill raising minimum wage over 4 years

Hawaii Gov. Abercrombie on Friday signed an invoice into law that will increase the state’s minimum wage to $10.10 an hour or so by January 2019 .

The law will also expand a tip credit to 75 cents, but businesses will not be able to deduct the credit unless workers earn a minimum of $7 a lot more than the minimum wage, up from 50 cents.

The state’s $7.25 an hour or so minimum wage has not been increased since 2007. The tip credit has become 25 cents.

HONOLULU – Gov. Neil Abercrombie today signed Senate Bill 2609 (Act 82), a stride that incrementally boosts the state’s minimum wage rate over the next four years and the tip credit within the next 2 yrs.

“A hardworking sector in our community went seven years with no raise,” Gov. Abercrombie said. “This legislation will raise Hawaii’s minimum wage from $7.25 to $10.10 an hour or so, providing our lowest paid workers with the economic stability and security they deserve.”
The president said, “I applaud Governor Abercrombie and the Hawaii Legislature for increasing their state’s minimum wage. Their actions will help to make sure that hardworking people of Hawaii get the raise all Americans deserve.”

“Too many Americans, despite working full-time, are falling behind and living in poverty,” said Secretary of Labor Thomas E. Perez. “Hawaii has taken one step in the right direction to change that by providing workers at the end of the income ladder a much-needed boost to enable them to better afford the basics like rent and food for their families. And businesses may benefit, too, as that extra money is spent locally on goods and services, ultimately strengthening the bottom line.”

“The last 4 times the minimum wage was increased, the amount of businesses went up by an average of 2.4 percent and also the number of jobs increased typically 2.1 percent Twelve months later,” state Department of Labor and Industrial Relations Director Dwight Takamine said. “Minimum wage increases boost consumer demand and generate economic activity as workers save money.”

Act 82 increases the state’s minimum wage rate to $7.75 each hour beginning Jan. 1, 2019, $8.50 per hour beginning Jan. 1, 2019, $9.25 each hour beginning Jan. 1, 2019, and $10.10 each hour beginning Jan. 1, 2019 . Additionally, it enhances the tip credit to 50 cents each hour beginning Jan. 1, 2019 and 75 cents each hour beginning Jan. 1, 2019, so long as the combined amount the employee receives in wages and tips reaches least $7 a lot more than the applicable minimum wage beginning Jan. 1, 2019.

Office from the Governor