Hawaii MINIMUM WAGES

Hawaii State Minimum Wage for 2025

As of January 1, 2024, Hawaii has increased the minimum wage for non-tipped and tipped workers to $14 per hour and $12.75 per hour, respectively. Employers are mandated to ensure that tipped workers receive enough tips to equal the $14 minimum wage. Additionally, all employees working beyond 40 hours per week must be paid at least one and a half times their regular pay as overtime pay.  

Minimum Wages in Hawaii Cities

The table below shows city-wise minimum wage rates in Hawaii.   

Threshold For Employees Exempt

The United States of America typically categorizes workers into two groups: exempt and non-exempt. The Fair Labor Standards Act (FLSA) sets the necessary rules and regulations for the two categories.  

• Non-exempt employees, usually the low-wage workers, are entitled to receive the state or federal minimum wage. A change in the minimum wage directly affects their income and livelihood.  

• Exempt employees, on the other hand, receive pre-defined salaries. As of July 1, 2024, exempt employees must earn at least $43,888 per year to qualify for this status. This threshold is set above the federal minimum to ensure that exempt employees are compensated at a level that reflects their exemption status. 

The Department of Labor will further raise this threshold to $58,656 per year starting January 1, 2025, and update the compensation level again on July 1, 2026, based on available data. 

While an increase in the minimum wage does not directly affect the exempt employees, it may push employers to raise salaries to maintain the distinction between exempt and non-exempt employees, ensuring pay parity.   

While many states have set higher salary thresholds for exempt employees, as of January 2024, Hawaii follows the federal minimum. 

Historical Data of Hawaii Minimum Wages

Hawaii is an island state in the United States of America. Owing to its unique geography, the state has its unique economic challenges, which extend to Hawaii’s minimum wage laws as well.  

The state of Hawaii established its first minimum wage law in 1942 and initially set it at $0.25 per hour. Over the years, the state incrementally increased the wage rates, however, they were not always in pace with the cost of living in Hawaii. 

In 2014, the state took a significant step and passed a law to gradually increase the minimum wage to $10.10 per hour by January 2018. This was a necessary measure taken by the government, but soon the wage rates became insufficient considering Hawaii’s exceptionally high living cost. By 2018, full-time minimum wage workers earned only $21000 per year, which was much less than the required wage of $27.44 per hour to survive.  

To address this, Hawaii has taken steps to incrementally raise minimum wages to match inflation and ensure workers are fairly compensated. 

The table below reflects the gradual increase in minimum wage rates in Hawaii between 1968 and 2024.

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history    

Exemptions in Minimum Wages of Hawaii 

While most workers are entitled to receive the state minimum wage of $14 per hour in 2024, some categories of workers stand as an exception. Many of these exemptions are defined by the Fair Labor Standards Act (FLSA), and few are unique to the state of Hawaii.  

• Workers receiving a guaranteed compensation of $2,000 per month 
• Agriculture organizations with fewer than 20 employees  
• Workers involved in coffee harvesting activities  
• Individuals providing casual domestic services in or about the employer’s home  
• Caretakers for the elderly or infirm in the employer’s home 
• House parents in charity homes 
• Individuals working for immediate family members 
• Executive, administrative, professional (EAP) employees, and outside salespersons including car salespeople  
• Individuals involved in fishing, fish farming, or other sea life  
• Individuals working on ships, vessels, or in the Merchant Marine  
• Taxi-cab drivers and golf caddies 
• Students working at their institution 
• Seasonal youth camp staff working at camps charitable, religious, or nonprofit organizations