People who work in Hawaii have to ensure they understand the state’s laws regarding minimum wage and overtime. State and federal laws dictate how pay is handled for everyone who works on the islands.
One important point to know is that Hawaii’s minimum wage is higher than the federal minimum wage. In the United States, the minimum wage in 2024 is set at $7.25 per hour. Hawaii is on track for a much higher minimum wage.
Minimum wage
Hawaii is following a tiered plan to raise the minimum wage on January 1 every other year. As of Jan. 1, 2024, the state minimum wage is set at $14 per hour. It raises to $16 in 2026 and $18 in 2028.
This minimum wage applies to all hourly workers. One exception that’s present is for people who receive tips for their work. The state allows a specific tip credit for those employees, which reduces the employer’s requirement for what it must pay hourly. Even in those cases, the employee’s total pay, which includes hourly pay and tips, must be at or above minimum wage.
Overtime
Most employees who earn $2,000 or less per month are required to pay overtime if they work more than 40 hours per week. Overtime pay is set at 1.5 times their normal hourly rate. Certain occupations, such as agriculture workers and government construction project workers have different overtime requirements.
Employees who realize they aren’t making the required minimum wage can take legal action to recover the wages they’re due. This is often a challenging undertaking, so it behooves them to work with someone who’s familiar with Hawaii’s laws regarding minimum wage and overtime.