Blog Archives

Minimum Wage
Quick Reminder: Minimum Wage Just Went Up To $7.75

Hi everybody, the minimum wage just went up!  Yeah, yeah, I get it…old news…you all already know about minimum wage increase. Well, I realize that it’s been discussed ad nauseum, but just in case there are a handful of people out there who forgot to make the requisite changes with their payroll, here’s a quick reminder that the minimum wage has gone up (and will continue to rise) according to the following schedule:

  • January 1, 2015 – $7.75
  • January 1, 2016 – $8.50
  • January 1, 2017 – $9.25
  • January 1, 2018 – $10.10

In addition to the higher minimum wage, there are a couple other things you should know.  First, the tip credit also increased to $0.50 an hour on January 1, 2015 and will tick up to $0.75 an hour on January 1, 2016, provided that the employee earns at least $7.00 above the minimum wage in tipped income and wages.  What does this mean?  Basically, in 2015, employees must make at least 7.50 an hour in tips to qualify for the $0.50 tip credit, which means that employers just lost the $0.25 tip credit they used to have for employees who earn less than $7.50 an hour in tips.  In other words, for employees in low tipped categories who might make just $5-6 an hour in tips, there is no longer a tip credit.

Second, in July 2014, the state DLIR issued a new Wage and Hour that discussed the new minimum wage amounts.  You can get a copy of the new poster here:  July 2014 Wage and Hour Poster.

You can also view the state’s tip credit and minimum wage guide here:  Minimum Wage and Tip Credits.

 
2014 Legislative Session: Final Report

On July 8, 2014, we passed the final deadline of the 2014 Legislative Session, the Veto Deadline.  The Veto Deadline is the date by which the Governor must either sign or veto a bill.  Any bill that is not vetoed becomes law “without the governor’s signature.”  This year, the Governor did not veto any of the employment-related bills.

Some of the bills that have became law include those addressing the following areas:

  • Minimum Wage (Act 82) – increases the states minimum wage
  • Private Guards (Act 94) – relaxes CE requirements for private guards
  • TDI (Act 160) – adds “organ donation” as an eligible disability to Hawaii’s TDI law
  • Organ, Bone Marrow or Stem Cell Donation (Act 161) - creates new leave law
  • Direct Deposit or Pay Cards (Act 208) – updates Hawaii payment of wages law
  • WC Drugs (Act 231) – sets price for repackaged, relabeled or combined WC drugs
  • Hawaii Health Connector (Act 233) – changes the operations of the Health Connector

A full list of bills that may be of interest to employers can be viewed on the HEC Legislative Digest, which can be accessed on the Legislative Updates section of the HEC website.  The Legislative Digest is currently available to the public.  In addition, HEC members can also access a Highlights article that discusses several of these new laws in more detail.

 
Governor Signs Minimum Wage Bill

On Friday before Memorial Day Weekend, Governor Abercrombie signed SB 2609 CD1 - the minimum wage bill from the 2014 legislative session - into law.  The state’s minimum wage is currently $7.25.  This bill will increase the minimum wage four times over the next four years as follows:

  • January 1, 2015 – $7.75
  • January 1, 2016 – $8.50
  • January 1, 2017 – $9.25
  • January 1, 2018 – $10.10 (<– Clayton Hee got that extra $0.10 that he wanted.)
In addition, this bill also increases the state’s tip credit (which is currently just 25 cents per hour) to 50 cents on January 1, 2015 and 75 cents on January 1, 2016.  In order to take any tip credit, however, the employee at issue must earn at least $7.00 above the minimum wage in tips and wages.  In effect, an employee must earn $7.50 an hour in tips beginning January 1, 2015 and $7.75 an hour in tips beginning January 1, 2016 for an employer to take a tip credit.  While this increase in the tip credit may be welcome news for some businesses, other employers will lose the tip credit altogether for employees who earn less than $7.50/$7.75 an hour in tips.  In other words, those employers will lose the 25 cent tip credit they currently utilize.

 
2014 Legislative Session: The End is Near(ing)

Let the conference games begin!

Just last week, we passed the Second Crossover deadline, which is the date that the Senate must complete its review of bills submitted by the House of Representatives, and vice versa.  Bills that have survived the Second Crossover deadline are now either (a) sent to conference or (b) sent to the Governor for his review/approval/veto.

At this point in the legislative session, there are still several bills remaining that would have an impact on how employers conduct business here in Hawaii.  Such bills include measures that address:

  • Minimum Wage
  • Payment of Wages
  • Temporary Disability Insurance
  • Workers’ Compensation
  • Healthcare Issues
  • Smoking in the Workplace
  • Criminal Background Checks
  • And others…

As I’ve noted in the “Running Updates” post here, the HEC Legislative Digest following Second Crossover is now available for viewing on the Legislative Updates section of the HEC Website.   In addition, HEC members can also access a Highlights article that discusses several of these key measures in more depth.

Conference hearings will begin this week.  As the Senate and House wrestle over the language of the pending bills, it will be interesting to see what type of concessions are made by either side and what type of legislation is ultimately passed.

 
2014 Legislative Session: Running Updates

Each year, the Hawaii Employers Council provides its members with updates on labor and employment law bills that are being addressed by the legislature. One of those documents, the Legislative Digest, is actually currently available to the general public, and can be accessed here:  HEC Legislative Updates.

Bills that are still alive as of the Second Lateral deadline address (1) the minimum wage, (2) payment of wages via direct deposit and pay cards, and (3) workers’ compensation drugs, fee schedule and settlements.

For the 2014 Legislative Session, the Legislative Digest is available for the following key deadlines:

  • Bills Introduced (available)
  • First Lateral (available)
  • First Crossover (available)
  • Second Lateral (available)
  • Second Crossover (available)
  • Sine Die  (available)
  • Veto Deadline (available)

As more deadlines pass, I will update this blog entry to indicate when the most recent Legislative Digest is available.

Other updates, such as articles providing a detailed explanation of several of the significant measures and talking points on certain bills, however, are available only to HEC members.