Report Title:

Minimum Wage; Cost-Of-Living Increase Adjustment

Description:

Increases the minimum wage amount and provides for an automatic annual adjustment for cost-of-living increases.

HOUSE OF REPRESENTATIVES

H.B. NO.

371

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to minimum wage law.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. 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,] subsection (b), every employer shall pay to each employee employed by the employer wages at the rate of not less than:

(1) $5.25 per hour beginning January 1, 1993;

(2) $5.75 per hour beginning January 1, 2002; [and]

(3) $6.25 per hour beginning January 1, 2003[.]; and

(4) $     per hour beginning January 1, 2005.

Beginning January 1, 2006, and on an annual basis thereafter, the minimum hourly wage shall be adjusted to be equal to one-half the national average hourly wage for nonsupervisory employees multiplied by the product of one hundred per cent and the then current cost-of-living differential percentage between the State's cost-of-living and the average cost-of-living for the mainland United States. The annual adjustment to the minimum wage shall be issued on December 15 of each year, for the forthcoming year, by the department using the most current available statistics gathered from the U.S. Bureau of Labor Statistics and from relevant state agencies.

(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 25 cents 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."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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