Hawaii Lawmakers To Raise Minimum Wage in October

The Hawaii House and Senate finally agreed to raise the state’s minimum wage to $12 per hour by October 1, 2022. The minimum wage bill HB2510 aims to scale up the minimum wage to $18/hour by January 1, 2028 and make the Earned Income Tax Credit (EITC) refundable.

“We appreciate the efforts by our Hawaii lawmakers – in both the House and Senate – to get an increase in minimum wage passed this legislative session,” said Chamber of Commerce Hawaii President and CEO Sherry Menor-McNamara.

Ryan Tanaka, incoming chairman of Hawaii Restaurant Association said the minimum wage increase will allow restaurants to continue to operate. He also admits that the $18/hour by 2028 will be a tough journey.

“Although the $18 by 2028 will be tough on some of our smallest businesses in Hawaii, the small business community is resilient and will do all they can to continue to provide jobs and services to the people of our state.”

The EITC is a refundable tax credit for low- and moderate- income workers. “Making the Earned Income Tax Credit refundable and permanent will help our most vulnerable in the community and lessen the burden of Hawaii’s high cost of living,” said Menor-McNamara.

For Tina Yamaki, president of Retail Merchants of Hawaii, Hawaii small businesses are “the heartbeat of our economy and backbone of our communities. They need our help, now more than ever.”

HB2510 includes the following:

Minimum Wage Scale
– Increase to $12/hour by October 1, 2022
– Increase to $14/hour by January 1, 2024
– Increase to $16/hour by January 1, 2026
– Increase to $18/hour by January 1, 2028

Earned Income Tax Credit
– Makes EITC refundable and permanent

Tip Credit Scale
– Increases from .75 cents to $1 per hour by October 1, 2022
– Increases to $1.25 by January 1, 2024
– Increases to $1.50 by January 1, 2028