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Bill

Bill

SB 604

RELATING TO THE TIP CREDIT.

2025 Regular Session Introduced by Troy Hashimoto and 1 co-sponsor

Hawaii SB 604 addresses tip credit policy affecting how employer minimum wage obligations interact with employee tips, currently under committee review.

Carried over to 2026 Regular Session.
#dlir #employment #minimumwage #tipcredit
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Bill Summary · SB 604

Legislative bill overview

SB 604 relates to Hawaii's tip credit—the amount employers can credit toward minimum wage obligations based on tips employees receive. The bill was introduced in January 2025 and has been referred to the Labor and Business, and Tourism (LBT) and Ways and Means (WAM) committees. It was carried over to the 2026 Regular Session without passing, meaning its specific provisions remain under consideration for the next legislative cycle.

Why is this important

Hawaii's tip credit policy directly affects thousands of service industry workers and restaurants. Changes to tip credit rules influence take-home pay for workers, operating costs for employers, and the state's broader minimum wage framework. This bill signals ongoing legislative interest in adjusting how tips interact with minimum wage requirements in Hawaii.

Potential points of contention

  • Worker protection vs. business flexibility: Proposals may either strengthen worker protections (ensuring tips don't reduce base pay obligations) or give employers more flexibility in accounting for tips
  • Industry competitiveness: Service industry stakeholders may argue proposed changes affect their profitability and ability to retain staff
  • Minimum wage interaction: Unclear whether the bill would modify, eliminate, or expand the tip credit mechanism relative to Hawaii's current $14.00 minimum wage (as of 2024)

Compiled from official sources — confirm details with the bill’s official record.

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