Hawaii Minimum Wage 2026: $16.00 an Hour, $18.00 on January 1, 2028 and the $1.25 Tip Credit Rules
Hawaii Minimum Wage 2026: $16.00 an Hour, $18.00 on January 1, 2028 and the $1.25 Tip Credit Rules
The Hawaii minimum wage in 2026 is $16.00 an hour under Hawaii Revised Statutes (HRS) 387-2. The rate rises to $18.00 an hour on January 1, 2028. If you hire employees in Hawaii, this is the floor you have to meet for every hour worked, unless a specific exception applies. This guide covers the current rate, the schedule ahead, the tip credit rules for restaurants and other tipped jobs, overtime and pay timing, and the leave and health care laws that come up once you have staff.
This is informational content, not legal or tax advice. Pay and employment rules can depend on the facts of your workplace, and the details matter. Confirm current requirements with the Wage Standards Division of the Hawaii Department of Labor and Industrial Relations (DLIR) and consider a qualified employment attorney or CPA for anything complex.
The Hawaii Minimum Wage Schedule
Hawaii raises its minimum wage in steps set by statute. The rate you must pay depends on the date the work was performed. Here is the schedule for the years that matter most to employers today and in the near future:
| Effective date | Hawaii minimum wage (per hour) |
|---|---|
| October 1, 2022 | $12.00 |
| January 1, 2026 | $16.00 |
| January 1, 2028 | $18.00 |
The 2026 rate of $16.00 applies to most non-tipped employees right now. The $18.00 rate takes effect January 1, 2028, so any wage agreement, offer letter, or payroll plan that runs into 2028 should account for that increase. If you are budgeting for two years out, plan on the higher number and do not assume the rate will stay flat.
Which Counties Are Covered
Hawaii has four counties: Honolulu, Hawaii, Maui and Kauai. The state has no incorporated cities, so there is no city-level wage ordinance to track. As of this writing, no county minimum wage ordinance has been found, which means the state rate applies in all four counties. Some employers look for a higher Honolulu rate because of local cost-of-living debates, but the rate you must pay is the state rate. Check with the Wage Standards Division before you rely on that conclusion for your own workplace, since local rules can change.
The Tip Credit: Paying Tipped Employees $1.25 Less
The tip credit lets an employer pay a tipped employee less than the full minimum wage, as long as the employee's total pay meets a combined threshold. Under current rules, an employer may pay a tipped employee $1.25 below the minimum wage. That allowance has applied since January 1, 2024. Starting January 1, 2028, the allowed reduction increases to $1.50.
The tip credit is conditional. You can use it only if all of the following are true:
- The employee actually receives tips. If the employee does not receive tips, the credit does not apply.
- The cash wage is at least the minimum wage minus the credit. In 2026, that means a cash wage of at least $14.75 an hour ($16.00 minus $1.25).
- Wages plus tips reach the combined threshold. The combined amount must be at least $7.00 above the minimum wage. In 2026, that is $23.00 an hour in combined cash wage and tips.
Using the same logic for 2028, the minimum wage will be $18.00, so the combined threshold will be $25.00 an hour. The cash wage floor will be $16.50 an hour after the credit rises to $1.50. These 2028 figures are arithmetic from the rules above, so confirm them with DLIR before you finalize a 2028 pay plan.
| Item | 2026 | 2028 |
|---|---|---|
| Minimum wage | $16.00 | $18.00 |
| Maximum tip credit | $1.25 | $1.50 |
| Minimum cash wage for a tipped employee | $14.75 | $16.50 |
| Combined wage plus tips threshold | $23.00 | $25.00 |
The practical risk here is in the combined test. If an employee earns a $14.75 cash wage but tip income that brings the total below $23.00, you are out of compliance for that workweek, even if the cash wage itself is legal. Track tips in your payroll records so you can show the combined total for each pay period. Do not treat tips as a substitute for wages you are required to pay.
Overtime and Hours Worked
Hawaii requires overtime pay for hours worked beyond 40 in a workweek. Employees are owed overtime for hours over that threshold at the rate required under state law. If you run a schedule with 10-hour shifts or split shifts, count the hours carefully by workweek, not by day or by pay period, so you do not miss overtime owed for the week.
The overtime rule applies to the workweek, so a fixed schedule that looks like 40 hours on paper can still produce overtime if extra shifts, coverage swaps, or event work push a worker over the line. Build timekeeping that flags any employee approaching 40 hours in a single workweek.
Pay Frequency: Paid at Least Twice a Month
Employers must pay wages at least twice a month. A monthly pay schedule does not meet that requirement. Set your payroll calendar so that every pay period falls within the rule. Biweekly and semimonthly schedules are both common and both work if the pay dates are consistent.
Leave Laws: What Hawaii Does and Does Not Require
Many employers assume a state paid leave mandate applies. Hawaii's leave rules are narrower than many readers expect, so check each category separately.
- Paid sick or vacation leave: Hawaii has no statewide paid sick leave or paid vacation law, according to DLIR. Any paid leave you offer is set by your own policy or by an employment agreement.
- Paid family leave: No paid family leave law was enacted in the 2026 legislative session. House Bill 2360 stalled in the Senate. Watch for future sessions, because this area has been debated repeatedly.
- Unpaid family leave: Under HRS 398-3, employers with 100 or more employees must provide up to 4 weeks of unpaid family leave. The leave is unpaid under the statute, though you may choose to pay it.
If you have fewer than 100 employees, the state family leave statute does not require you to provide that unpaid leave, but your own policies, employment contracts, and federal obligations may still apply. Confirm your coverage with an attorney if your headcount is near the threshold.
The Prepaid Health Care Act
Employers in Hawaii must follow the Prepaid Health Care Act, which requires certain employers to provide health care coverage for eligible employees. The Act uses a dollar threshold that is tied to the minimum wage. The current figure is $1,387, which is 86.67 times the minimum wage. As the minimum wage rises, that test figure rises with it, so the threshold you measure against in 2028 will be higher than it is today.
Because the threshold moves with the wage rate, a one-time check is not enough. Review your coverage obligations each time the minimum wage changes, and confirm the current test figure with the agency that administers the Act before you make decisions about coverage.
Registering as an Employer in Hawaii
Hawaii does not have a general statewide business license or a county general business license. Registering an entity or a trade name is a filing with the Department of Commerce and Consumer Affairs (DCCA), Business Registration Division (BREG), not a license. The one universal state registration is the General Excise Tax (GET) license.
Essentially every business in Hawaii must obtain a GET license from the Department of Taxation. The license is a one-time $20 fee. You can apply on Form BB-1 or through Hawaii Tax Online. Hawaii has no sales tax. Instead, the GET is levied on the seller's gross receipts, not on the customer. Every license holder must file returns, including periods with no income, so an employer with a new hire and no revenue yet still has filing obligations.
Other licenses depend on your trade. The DCCA Professional and Vocational Licensing boards regulate many occupations. The Department of Health issues food permits. The Public Utilities Commission, county liquor commissions and county planning departments handle their own areas. Confirm the requirements for your specific business before you hire.
Where to Confirm Your Numbers
The figures in this guide reflect current law as of the research date, but wage rules can change through new legislation or agency guidance. Use these official resources to verify before you finalize payroll or a wage policy:
- Wage Standards Division, Hawaii Department of Labor and Industrial Relations: The authority on minimum wage, tip credit, overtime and pay frequency questions. Ask about county rules here too.
- Hawaii Department of Taxation: https://tax.hawaii.gov/, for GET licensing and filing.
- Hawaii Department of Commerce and Consumer Affairs, Business Registration Division: https://cca.hawaii.gov/breg/, for entity filings and trade name questions.
- Hawaii Small Business Development Center: https://hisbdc.org/, for free and low-cost advising on hiring and payroll setup.
Practical Checklist for Employers
- Set every non-tipped hourly rate at no less than $16.00 an hour in 2026.
- If you use the tip credit, confirm the employee receives tips and that cash wage plus tips reaches $23.00 an hour in 2026.
- Track tips and hours by workweek so overtime after 40 hours is calculated correctly.
- Pay wages at least twice a month.
- Plan for the $18.00 minimum and $1.50 tip credit starting January 1, 2028.
- Review your Prepaid Health Care Act obligations against the current $1,387 test figure, and recheck it when the wage rate changes.
- Obtain your one-time $20 GET license before you start doing business.
Bottom Line
The Hawaii minimum wage in 2026 is $16.00 an hour, and it rises to $18.00 on January 1, 2028. The tip credit lets you pay tipped employees $1.25 below the minimum now and $1.50 below it from 2028, but only when the employee receives tips and the combined total meets the threshold. Overtime applies after 40 hours in a workweek, and wages must be paid at least twice a month. Hawaii has no statewide paid sick or vacation law and no paid family leave law as of the 2026 session, so your own policies and the unpaid family leave requirement for larger employers shape most leave decisions. Build your payroll around the rules above, and confirm the details with DLIR before you act.
Disclaimer: This article is informational content about Hawaii business and employment rules. It is not legal or tax advice. For decisions about wages, tip credits, leave, or health care coverage, consult a qualified employment attorney or CPA who can review your specific facts.