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Hawaii Rings in 2023 with a Minimum Wage Boost to $14 on January 1st

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Effective January 1, 2024, the minimum wage in Hawaii will rise to $14 per hour, as announced by the Hawaiʻi State Department of Labor and Industrial Relations. According to Act 114, Session Laws of Hawaii (2022), the minimum wage will gradually grow. Reaching $16 per hour by January 1, 2026, and $18 by January 1, 2028, are the goals.

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DLIR Director Emphasizes Worker Protection Through Minimum Wage Law; Base Wage and Tip Credit to Increase in Hawaii from January 1, 2024

The minimum wage law protects workers’ health, efficiency, and well-being, according to DLIR Director Jade T. Butay. His point was that the minimum wage ensures a level playing field for workers by preventing underpayment.

The base wage and tip credit will increase on January 1, 2024. Starting January 1, 2028, tipped workers can be paid $1.25 below the minimum wage, rising to $1.50.

However, companies must ensure that the employee receives at least $7.00 more than the minimum wage from both salary and tips. This provision ensures that tipped workers receive a fair wage.

READ ALSO: November 2023 Hawai‘i Vacation Rental Performance Report

Hawaii Adjusts Wage Standards in Gradual Hike to Navigate Economic Realities and Worker Compensation

Wage standards are being adjusted to match the cost of living and economic situations. Act 114 outlines gradual hikes to allow firms to adapt while properly compensating workers.

With these reforms, the state hopes to enforce the minimum wage law and safeguard workers from poor earnings. The projected wage raise will certainly damage Hawaii’s economy, hitting firms and employees across sectors as the new year approaches.

READ ALSO: Minimum wage to increase to $14 on Jan. 1

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