Hawaii's minimum wage steps to $16.00 in 2026, and $18.00 in 2028.
Effective January 1, 2026, the state minimum wage in Hawaii increases to $16.00 per hour, continuing the phased increases mandated by 2022 SB 2018. This represents a significant adjustment from the current $14.00, with a further increase to $18.00 scheduled for January 1, 2028. Employers must ensure all non-exempt employees are paid at or above this new threshold, while also navigating unique tipped wage requirements.
Hawaii Minimum Wage
HRS 387-2 mandates a phased increase to the state's minimum wage through 2028, impacting all non-exempt employees.
What these rules do as a Hawaii shift is created.
Teambridge automatically applies Hawaii's minimum wage standards to every shift, ensuring compliance even with complex tipped wage calculations. Our system tracks the effective dates for scheduled increases, so your payroll is always up-to-date.
Ensures minimum wage adherence
When a shift is created or edited for a non-exempt employee in Hawaii, Teambridge verifies that the proposed hourly wage meets or exceeds the current statutory minimum ($16.00/hr from Jan 1, 2026). If the wage falls below this, the system will prevent the shift from being finalized or flag it for immediate correction, protecting against underpayment.
Monitors tipped employee earnings
For employees designated as tipped, Teambridge implements Hawaii's "tipped plus" framework. The system calculates whether the combined cash wage ($12.75/hr from Jan 1, 2026) plus estimated tips for the shift will meet or exceed $7.00 above the full minimum wage. If the projections indicate a shortfall, an alert is triggered, prompting management to adjust wages or verify tip income.
Applies scheduled increases automatically
Teambridge has the future minimum wage increases for Hawaii pre-programmed. On January 1, 2026, and again on January 1, 2028, the system will automatically update the minimum wage floor to $16.00/hr and $18.00/hr respectively, ensuring continuous compliance without manual intervention or risk of oversight.
Stop worrying about Hawaii's complex wage rules.
Let Teambridge automate compliance for your Hawaii workforce. Focus on your business, not on tracking legislative updates.
Hawaii's minimum wage is set for phased increases through 2028.
Hawaii Revised Statutes (HRS) § 387-2 establishes the state's minimum wage. Following the passage of 2022 Senate Bill 2018, the minimum wage is undergoing a series of scheduled increases, reaching $16.00 per hour on January 1, 2026, and $18.00 per hour on January 1, 2028. After 2028, no further statutory increases are currently scheduled.
HRS § 387-2. Minimum wages.
Except as otherwise provided in this section, every employer shall pay to each employee a wage of not less than:
- $12.00 per hour beginning October 1, 2022;
- $14.00 per hour beginning January 1, 2024;
- $16.00 per hour beginning January 1, 2026; and
- $18.00 per hour beginning January 1, 2028.
Tipped Employee Minimum Wage and Tip Credit
Hawaii permits a tip credit, meaning employers can pay tipped employees less than the full minimum wage, provided certain conditions are met. From January 1, 2026, the cash wage for tipped employees can be $12.75 per hour, allowing for a maximum tip credit of $3.25. However, Hawaii's "tipped plus" framework adds a critical layer: the combined cash wage and actual tips received by the employee must equal at least $7.00 per hour more than the applicable minimum wage. This means that for 2026, the employee's total effective earnings (cash + tips) must be at least $23.00 per hour ($16.00 + $7.00).
Exemptions and Coverage
The minimum wage requirements apply to most employees in Hawaii, with specific exemptions for certain categories such as agricultural workers, certain domestic service workers, and employees working for employers with very limited annual gross revenues. Employers should carefully review HRS Chapter 387 to determine specific applicability and any potential exemptions for their workforce.
Teambridge handles Hawaii's minimum wage, including future increases and tipped employee rules.
With Teambridge, you don't need to track legislative calendars or manually adjust pay rates. Our platform is pre-loaded with Hawaii's current and scheduled minimum wage laws, ensuring every shift and every payroll run is compliant, automatically.
Automatic minimum wage checks
Every time an employee clocks in or a shift is entered, Teambridge cross-references the assigned pay rate against Hawaii's current minimum wage. Any discrepancy is immediately flagged, preventing underpayment before it occurs.
Real-time "tipped plus" calculations
For tipped employees, Teambridge calculates the effective hourly rate based on cash wage and declared tips. It then verifies compliance with the "tipped plus" rule, ensuring combined earnings are at least $7.00 above the state minimum wage, and alerts you to any potential shortfalls.
Future-proofed for statutory changes
The upcoming minimum wage increases for January 1, 2026 ($16.00) and January 1, 2028 ($18.00) are already built into our system. Teambridge automatically updates the applicable minimum wage on these dates, eliminating manual adjustments and ensuring seamless transition.
Detailed compliance trails
All wage calculations and compliance checks are logged and accessible through comprehensive reports. This provides an indisputable audit trail, demonstrating adherence to Hawaii's minimum wage laws for every employee and every pay period.
People also ask.
What is the minimum wage in Hawaii starting January 1, 2026?
Effective January 1, 2026, the minimum wage in Hawaii will increase to $16.00 per hour. This is part of a phased increase mandated by 2022 SB 2018.
When will the Hawaii minimum wage increase again after 2026?
After the January 1, 2026 increase to $16.00 per hour, the next scheduled increase will be to $18.00 per hour, effective January 1, 2028.
How does the tipped minimum wage work in Hawaii?
Hawaii has a "tipped plus" framework. From January 1, 2026, the cash wage for tipped employees can be $12.75 per hour. However, the employer must ensure that the employee's combined cash wage plus actual tips received equals at least $7.00 per hour above the full minimum wage. So, in 2026, their total effective earnings must be at least $23.00 per hour ($16.00 + $7.00).
Does the Hawaii minimum wage apply to all employees?
Generally, yes, it applies to most non-exempt employees. However, there are specific exemptions for certain categories, including some agricultural workers, certain domestic service workers, and employees of very small businesses. Employers should consult HRS Chapter 387 for detailed applicability.
Are there any further minimum wage increases scheduled after 2028?
As of the current legislation (2022 SB 2018), there are no further statutory minimum wage increases scheduled for Hawaii after January 1, 2028.
What happens if an employer fails to pay the minimum wage?
Employers found in violation of Hawaii's minimum wage laws may be subject to fines, penalties, and required to pay back wages to affected employees. The Department of Labor and Industrial Relations (DLIR) enforces these provisions.