The Hawaii minimum wage increased on January 1, 2026, and will progressively increase to $18.00 by 2028. Merchants must keep updated with these changes to maintain legal compliance. Understanding and preparing for these future wage adjustments is crucial for strategic planning and financial forecasting as a business owner.
Here is a detailed overview of Hawaii’s projected minimum wage adjustments to help you stay informed.
As of 2026, the minimum wage in Hawaii is $14 per hour. This exceeds the federal minimum wage of $7.25 per hour, meaning employees in Hawaii must receive the higher state minimum wage. Previously, the minimum wage was $12 per hour, and it is scheduled to rise to $16 per hour on January 1, 2026, and then to $18 per hour on January 1, 2028.
Hawaii’s minimum wage law includes different exceptions. For instance, tipped employees can earn a lower base wage if their tips ensure their pay meets or exceeds the minimum wage. Furthermore, certain workers, like those under 18, may receive a different minimum wage, which will be covered later in this article.
If you’re working in Hawaii and suspect you’re not being paid the minimum wage, you can complain to the Hawaii Department of Labor and Industrial Relations.
Hawaii introduced its first minimum wage law in 1942, establishing the rate at $0.30 per hour. Over the years, the state has adjusted the minimum wage more than 50 times, reaching the current rate of $14 per hour. Notably, recent legislative actions have aimed to incrementally increase the minimum wage to $18 per hour by 2028.
Below is a summary of significant increases in Hawaii’s minimum wage:
| Year | Minimum Wage |
| 1942 | $0.30 per hour |
| 1950 | $0.75 per hour |
| 1964 | $1.25 per hour (Oahu), $1 per hour (other islands) |
| 1970 | $1.60 per hour (statewide) |
| 1990 | $3.80 per hour |
| 2003 | $6.25 per hour |
| 2007 | $7.25 per hour (statewide) |
| 2015 | $7.75 per hour |
| 2016 | $8.50 per hour |
| 2017 | $9.25 per hour |
| 2018 | $10.10 per hour |
| 2022 | $12 per hour |
| 2023 | $12 per hour |
| 2024 | $14 per hour |
Several factors have driven these wage increases. The high cost of living in Hawaii, one of the most expensive states in the U.S., has been a significant influence, as residents face steep expenses for housing, food, and other basic needs.
Economic research also supports the benefits of a higher minimum wage, suggesting it can stimulate consumer spending and reduce poverty rates. These wage increases have received varying responses. While some businesses express concerns about potential job losses, many workers support the rise, seeing it as essential for meeting their financial needs.
Employers must pay non-exempt workers overtime at 1.5 times their usual hourly wage for hours worked beyond 40 in a single workweek.
According to the Fair Labor Standards Act, the minimum salary for exemptions related to administrative, professional, and executive roles is $684 per week or $35,568 annually. Employees earning at least this amount may qualify for overtime depending on their specific job responsibilities.
In Hawaii, the minimum wage for tipped employees is $12.75. Employers are allowed to use a tip credit of $1.25 per hour. However, this credit only applies if the employee’s combined income from wages and tips is at least $7 higher per hour than the standard minimum wage.
This arrangement requires a tipped employee’s total earnings, including tips and direct wages, to be at least $19.75 per hour.
In Hawaii, the general minimum wage is $14 per hour. However, employers must consider certain exceptions and specific circumstances.
Due to federal laws, certain positions are exempt from Hawaii’s minimum wage. These typically include executive, administrative, or professional responsibilities, such as managers, computer professionals, and outside sales representatives.
Hawaii also exempts certain groups from its minimum wage standards, including:
Different regulations may apply to workers in certain industries. For instance, agricultural workers are subject to a minimum wage of $10.50 per hour. Wages for apprentices and trainees in recognized programs may also be reduced during training.
Certain computer-related roles, such as programmers and systems analysts, are exempt from minimum wage regulations if their responsibilities and pay satisfy specific criteria.
Other workers exempt from the minimum wage include those in fishing, seasonal youth camps, golf caddies, and car salespersons, depending on specific job-related conditions.
As minimum wage requirements evolve, it is essential to plan effectively. Here are some practical steps to help manage these changes:
By implementing these steps, you can smoothly adapt to minimum wage changes and position your business for continued success. Planning ahead is vital for managing such changes effectively. This is also an opportunity to invest in your workforce and support your company’s growth.
As Hawaii’s minimum wage rises, reaching $18 per hour by 2028, businesses and employees must stay informed and prepared. The incremental increases from $14 in 2026 to $16 in 2026 and eventually to $18 reflect the state’s effort to address the high cost of living and support workers’ financial needs. For employers, this means careful planning and adjustments to ensure compliance with the new rates.
This includes revising pay scales, communicating changes clearly to employees, and addressing wage compression issues. By proactively managing these adjustments, businesses can maintain compliance, support their workforce, and contribute to long-term success. Staying ahead of these changes will help avoid legal issues and foster a more motivated and satisfied workforce.
Recommended: Minimum Wage in Different States
Starting January 1, 2026, Hawaii’s minimum is $14.00 per hour, much higher than the federal minimum wage of $7.25 per hour. Planned increases will raise the wage to $16.00 in 2026 and $18.00 in 2028.
In 2026, tipped employees in Hawaii can be paid $1.25 less than the standard minimum wage as long as their tips bring total earnings to at least $7.00 more per hour than the minimum wage. This tip credit will increase to $1.50 in 2028.
Certain employees, such as those in computer-related jobs and outside salespeople, may be exempt if they meet specific criteria. Hawaii does not permit subminimum wages for trainees, apprentices, or workers with disabilities.
Employers must adjust their payroll systems to the new wage rates and update labor law posters to inform employees of their rights. This ensures compliance and transparency in the workplace.
