THE SENATE |
S.B. NO. |
2750 |
THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the minimum wage.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The
legislature finds that Hawaii's minimum wage should be increased to meet
workers' basic needs. According to the department
of business, economic development, and tourism, a single adult required an
income of $32,957 to achieve self-sufficiency in Hawaii in 2016, while a single
parent with one child required $56,157. Yet
at the current statewide minimum wage rate of $10.10 per hour, a full-time
employee earns only $21,008 annually. Moreover,
the National Low Income Housing Coalition's Out of Reach 2018 report estimates
that a minimum wage worker would have to work 109 hours per week to afford a
one-bedroom rental home at local fair market rent.
The legislature
further finds that increasing the State's minimum wage will help Hawaii's
economy by giving low wage workers greater purchasing power in Hawaii's
marketplace. Additionally, according to
the department of labor and industrial relations, the four consecutive years of
minimum wage increases from 2015 to 2018 resulted in the State's unemployment
level reaching an all-time low of two per cent, demonstrating that increasing
the minimum wage does not adversely impact statewide employment.
The purpose of this
Act is to support Hawaii's workforce by increasing the minimum wage rate in the
State.
SECTION 2. 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;
(3) $7.25 per hour beginning January 1, 2007;
(4) $7.75 per hour beginning January 1, 2015;
(5) $8.50 per hour beginning January 1, 2016;
(6) $9.25 per hour beginning
January 1, 2017; [and]
(7) $10.10
per hour beginning January 1, 2018[.];
(8) $11.50 per hour
beginning January 1, 2023;
(9) $13.00 per hour beginning January 1,
2024;
(10) $14.50 per hour beginning January 1,
2025;
(11) $16.00 per hour beginning January 1,
2026; and
(12) $18.00 per hour beginning January 1,
2027.
(b) [The
hourly wage of a tipped employee may be deemed to be increased on account of
tips if the employee is paid not less than:
(1) 25 cents;
(2) 50 cents per
hour beginning January 1, 2015; and
(3) 75 cents per hour
beginning January 1, 2016,
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; provided that beginning January 1, 2015, the combined amount the
employee receives from the employee's employer and in tips is at least $7.00
more than the applicable minimum wage.] Beginning
on September 30, 2027, and each September 30 thereafter, the department shall
calculate an adjusted minimum wage rate.
The adjusted minimum wage rate shall be calculated to the nearest five
cents using the Honolulu region consumer price index for all urban consumers
for the twelve months prior to September 1 of each year as calculated by the
United States Department of Labor; provided that if in any year the adjustment
based on the Honolulu region consumer price index for all urban consumers would
result in a lower minimum wage rate, the adjusted minimum wage rate shall remain
the same as the minimum wage rate in effect for the year in which it is
calculated. Each adjusted minimum wage
rate calculated under this subsection shall take effect on January 1 following
the calendar year in which the adjusted minimum wage rate is calculated; provided
that if an increase in the adjusted minimum wage rate exceeds ten per cent of
the minimum wage rate in effect for the year in which it is calculated, the
adjusted minimum wage rate shall be increased by ten per cent of the minimum wage
rate in effect for the year in which it is calculated."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2022.
INTRODUCED BY: |
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Report Title:
Minimum Wage; Employment; Adjusted Minimum Wage Rate
Description:
Increases the minimum wage annually starting 1/1/2023. Beginning on September 30, 2027, and each year thereafter, requires the department of labor and industrial relations to calculate an adjusted minimum wage rate to the nearest five cents using the Honolulu region consumer price index for all urban consumers, subject to certain conditions. Repeals the tip credit.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.