Hawaii’s minimum wage could soon be raised to $18 an hour

Hawaiian lawmakers on Tuesday passed legislation that would raise the state’s minimum wage to $ 18 an hour by 2028, which could create the highest minimum wage for U.S. workers.

Hawaii’s minimum wage is currently $ 10.10 an hour. The bill would increase that rate in increments over the next few years, starting with a jump to $ 12 on October 1st.

Proponents of her case have been working to make the actual transcript of this statement available online. But some companies warn that they will have to cut staff or even close because they will not be able to afford to pay the higher pay.

However, a state analysis released in December showed that a single person who worked 40 hours a week would have to earn $ 18 an hour to be able to pay for housing and other basic necessities in the state of Aloha.

“People should be able to cover their basic needs 40 hours a week,” said Nate Hix, director of Living Wage Hawaii, a advocacy group that has been pushing for a higher minimum wage. “Otherwise, people are forced to work multiple jobs or sacrifice their basic needs such as food, lodging, clothing.”

The Hawaii Chamber of Commerce said many of its members will lay off people and some will close due to the pay rise. The business group said Hawaii’s unique requirement that employers provide health insurance to those who work more than 20 hours a week already adds $ 3 or $ 4 to workers’ hourly compensation.

Michael Miller, chief operating officer of Tiki’s Grill and Bar, said he is in favor of gradually raising the rate to $ 15 by 2027. He said the costs of everything including labor will increase with the salary higher.

“Who pays for it then? The consumer pays for it,” Miller said.

About 20 states, including Ohio and Missouri, have raised their minimum wages this year. Some of the highest minimum wages in the country now include Massachusetts at $ 14.25, Washington at $ 14.49 and California at $ 15.

Jobs in some states like Alabama and Georgia still have a minimum wage of $ 7.25, which reflects the national average.

States are not the only layers of government that raise wages. Los Angeles County, California will do just that increase your minimum wage requirement at $ 16 an hour as of July 1st. Malibu will do it also increase your minimum age at $ 15.96 for the same date.

Governor’s support

The House and Senate of Hawaii, both controlled by Democrats, passed the measure by a wide margin. The bill now goes to Hawaii Gov. David Ige, who has said he admits a minimum hourly wage of $ 18.

The legislation also extends the tip credit to $ 1.50 in 2028, allowing employers to subtract that amount from the salary they pay if workers earn enough on a tip.

The bill makes the income tax credit permanent and refundable, which means it will put money in the pockets of workers even if they have no tax liability, which will help low- to moderate-income workers reduce their taxes and potentially increase their tax returns. . The existing tax credit in Hawaii expires this year and is non-refundable, meaning many low-income taxpayers cannot use it because their income is too low to require significant taxes.