Tipped minimum wage / Hawaii

By NorseHorse. Rates in force on October 15, 2026, checked against the sources at the bottom of this page. General information, not legal advice.

What employers must pay

In Hawaii, the minimum wage is $16.00 an hour. Your employer can pay you $14.75 an hour in cash only if your cash wage plus tips comes to at least $23.00 an hour. If it doesn't, you are owed the full $16.00 an hour before tips.

Who counts as a tipped employee: more than $20 a month in tips.

What changes next

On January 1, 2028, the minimum wage goes to $18.00 and the tipped cash wage to $16.50. Nothing changes in 2027.

Tip pooling and service charges

Hawaii rules count only the share of pooled tips each worker actually receives and keeps toward the tip credit, and the employer must tell workers in writing at hire if it uses a tip credit. Otherwise federal pooling rules apply: managers, supervisors and the employer may not keep tips.

A hotel or restaurant that adds a service charge for food or drink must pass all of it to employees as tips or clearly tell customers it is used for other costs.

Overtime

Time and a half after 40 hours a week under Hawaii law, with no daily overtime for most jobs. Tipped overtime is figured on the full $16.00 minimum, not the cash wage.

Taxes on your tips

Hawaii taxes wage income, and tips are wages, so its income tax applies to your tips. Federal income tax, Social Security and Medicare still apply. The federal tip deduction can cut the income tax part: see how the No Tax on Tips deduction works.

Check a week's pay

If you are underpaid

Start by comparing your pay stubs with your own record of hours and tips. If the numbers don't add up, you can file a complaint with the Hawaii Department of Labor and Industrial Relations, Wage Standards Division: how to file. You can also call the U.S. Department of Labor, Wage and Hour Division, at 1-866-487-9243.

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