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Minimum Wage in Hawaii: $16.00 Now, $18.00 in 2028 and the $7.00 Tip Rule

The minimum wage in Hawaii is $16.00 an hour as of October 2026, and state law sets the next rise to $18.00 on January 1, 2028. Employers can take a tip credit of only $1.25 an hour, and only when the employee's wages plus tips come to at least $7.00 more than the minimum.

Hawaii's Wage Standards Division, part of the Department of Labor and Industrial Relations, enforces the rate. This page draws on the division's minimum wage page and its tip credit notice, plus the U.S. Department of Labor's state, tipped, history and payday tables, all read in October 2026.

Hawaii's schedule

BeginningHawaii minimum wage
January 1, 2018$10.10
October 1, 2022$12.00
January 1, 2024$14.00
January 1, 2026$16.00
January 1, 2028$18.00

There's no rise in January 2027. The rate stays at $16.00 for two full years, then jumps by $2.00, so budget for that step now.

The tip credit and the $7.00 test

Here's the rule that sets Hawaii apart. The tip credit notice says an employer can pay a tipped employee below the minimum only if the employee customarily and regularly receives more than $20 a month in tips and the combined wages and tips are at least $7.00 more than the minimum wage. In 2026 and 2027, that means a tipped employee must make at least $23.00 an hour combined before the employer can pay $14.75.

PeriodCombined wage plus tips neededMaximum tip creditLowest cash wage
January 1, 2024 to December 31, 2025$21.00$1.25$12.75
January 1, 2026 to December 31, 2027$23.00$1.25$14.75
From January 1, 2028$25.00$1.50$16.50

If a server's tips average less than that, the employer can take a smaller tip credit or none. So in practice, most tipped workers in Hawaii are paid close to the full $16.00 in cash. My guide to tip pooling covers how shared pots work.

Who's outside the state law

The federal state table says an employee earning a guaranteed monthly compensation of $4,000 or more is exempt from Hawaii's minimum wage and overtime law. Domestic service workers, on the other hand, are covered by Hawaii's minimum wage and overtime rules under Act 248 of 2013. The same table notes that Hawaii's law doesn't cover work subject to the federal Fair Labor Standards Act unless the state rate is higher, and Hawaii's is.

Overtime

Overtime is generally required after 40 hours worked in a workweek, under section 387-3 of the Hawaii Revised Statutes. On state or county public construction projects, the division says overtime is required after 8 hours a day and for all hours on Saturdays, Sundays and state holidays. My overtime laws guide covers the federal rules.

Paydays

The federal payday table lists Hawaii under semi-monthly paydays, with a monthly option. Its notes say employees may choose to be paid monthly under a special election procedure, the Director of Labor and Industrial Relations may grant exceptions, and the payday rule applies only to private sector employment.

Alaska is the other state away from the mainland and handles things differently, with daily overtime and no tip credit, as our Alaska minimum wage page explains.

How Hawaii compares

StateBasic minimum wage (as of October 2026)
Hawaii$16.00
California$16.90
Washington$17.13
Alaska$14.00
Federal$7.25

Hawaii sits just below California and Washington and above Alaska. My California minimum wage guide covers the nearest mainland comparison.

Before you run Hawaii payroll

  1. Set every hourly rate at $16.00 or more.
  2. Take a tip credit only if wages plus tips reach $23.00 an hour, and never more than $1.25.
  3. Check whether any salaried staff earn a guaranteed $4,000 or more a month.
  4. Pay overtime after 40 hours, or after 8 hours on public construction.
  5. Run payroll at least twice a month unless an employee elects monthly pay.
  6. Put January 1, 2028 and the $18.00 rate in your planning.

Federal rules underneath

Hawaii's rate sits on top of the federal Fair Labor Standards Act. The Department of Labor's reference guide sets the federal floor at $7.25 and time and a half after 40 hours for non-exempt staff, and it requires employers using a tip credit to tell staff in advance. For teens, 14 and 15 year olds can work no more than 3 hours on a school day or 18 hours in a school week, and minors aged 16 and 17 can do any nonhazardous job for unlimited hours.

Mistakes Hawaii employers make

  • Taking the $1.25 tip credit without checking that wages plus tips reached $23.00 an hour.
  • Using a tip credit for staff who get $20 or less a month in tips.
  • Planning a January 2027 rise that the schedule doesn't include.
  • Treating domestic service workers as outside the state law.
  • Paying public construction staff weekly overtime only, when the rule there is after 8 hours a day.

The highest rate in the US table belongs to DC, and the DC minimum wage guide shows how its yearly July rise works.

My verdict

Hawaii's tip credit is so small and so hard to qualify for that it barely changes what tipped staff are paid. The figure that matters is $16.00 now, and the jump to $18.00 in 2028 is the one to plan for. If you're setting wages for a hotel or restaurant, run the $7.00 test every pay period rather than assuming the credit applies.

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See also: California Overtime Laws.

Frequently asked questions

What is the minimum wage in Hawaii?

It's $16.00 an hour as of October 2026, rising to $18.00 on January 1, 2028.

Will Hawaii's minimum wage go up in 2027?

No. The schedule keeps it at $16.00 until the rise to $18.00 on January 1, 2028.

What is the tip credit in Hawaii?

Up to $1.25 an hour in 2026 and 2027, only when wages plus tips are at least $7.00 above the minimum.

What is the lowest cash wage for tipped staff in Hawaii?

$14.75 an hour in 2026 and 2027, if the employee's combined wages and tips reach at least $23.00.

Who counts as a tipped employee in Hawaii?

Someone who customarily and regularly receives more than $20 a month in tips.

Who is exempt from Hawaii's minimum wage?

Employees with a guaranteed monthly compensation of $4,000 or more, among others.

How often must Hawaii employers pay?

Semi-monthly, unless an employee elects monthly pay or the director grants an exception.

Are domestic workers covered in Hawaii?

Yes. Domestic service workers are covered by Hawaii's minimum wage and overtime rules.

When is overtime due on Hawaii public construction projects?

After 8 hours a day and for all hours on Saturdays, Sundays and state holidays.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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