The Hawaii Minimum Wage in 2024

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With the high cost of goods and services, Hawaii small businesses will have another extra expense. The minimum wage in Hawaii will increase to $14 per hour on January 1, 2024. Many of the small businesses will feel the effect of the increase.

The minimum wage will increase to $16 per hour in 2026 and $18 per hour on January 1, 2028. What does it mean for restaurant owners with tipped workers? The owners will have to pay $1.25 less than the minimum wage on January 1, 2024, or $12.75 per hour. According to the Hawaii minimum wage law, a tipped worker must earn at least $21 per hour ($14 + $7 tips = $21 per hour). The owners receive a tip credit of $1.25 per hour, provided the employees earn at least $7 more than the minimum hourly wage.

According to CNBC Make It, about 60% of restaurants fail within the first year, and 80% fail within five years; this statistic was from 2016. The lockdowns, restrictions, and everything to do with the pandemic didn’t help.

The additional cost to restaurant and business owners will make it much harder for restaurants and other small business owners to do business in Hawaii.

Final Thoughts

With the rising cost of labor, goods, and services, the trickle-down effect will be an increase in the prices of food on the menu at restaurants. I hope other industries, such as the tourist industry, see a return to support the restaurant industry.