A bill that would incrementally raise the state’s minimum wage passed out of the state Senate on Tuesday.
House Bill 2510, in its current iteration, would increase the base pay in stages from the current minimum wage of $10.10 to $12 per hour in October of this year, then to $15 an hour starting January 2024 and finally $18 an hour in January 2026.
It would also reduce and eventually eliminate the “tip credit” — a practice that allows employers to use a portion of tips toward the calculation of the minimum wage.
At a Labor for Living Wages rally at the Hawai’i State Capitol on Wednesday, Kona Rep. Jeanne Kapela said current wages cannot begin to satisfy the state’s highest cost-of-living standards in the nation.
“Our current minimum wage of $10.10 is not enough,” Kapela said. “A minimum wage worker currently has to work close to three full-time jobs – or 114 hours a week – just to afford a one-bedroom apartment in our islands. We know that working families are being priced out of paradise. They can't afford to keep a roof over their head or feed their children.”
Kapela said it comes down to lawmakers to make this happen.
“We know that the Legislature needs to step up and really have the political courage to ensure that we can deliver a living wage for all,” Kapela said. “A living wage really means the difference between choosing whether you're going to use that $20 bill to put gas in your car or keep a roof over your head or put food on the table for your children.”
Hawai’i last raised its minimum wage back in 2018.
Advocates at the rally ranged from state representatives and senators to union and trades workers.
"We're here because we understand that our community is reflective of how we treat the beliefs of our community members," Anthony Makana Paris, a research analyst with the Hawai'i Iron Workers Stabilization Fund said. "And labor has always stood up for working families."
The bill has generally seen support across the board, but has seen strong opposition.
In written testimony from last week about the bill, the Hawai'i Food Manufacturers Association, a nonprofit that represents about 120 members promoting Hawaiian grown products, argued that raising the wage may result in unintended consequences.
“The escalating property prices and commercial rent increases are creating stress on food manufacturers that are already struggling to survive with limited revenue due to COVID-19 restrictions," the organization wrote. “Adding this minimum wage increase to $18 would strain most companies’ financial situations and run the risk of having to lay off workers.”
At the start of the session, both the House and Senate introduced bills to raise the minimum wage. The initial Senate Bill 2018 died in March, and HB2510 has been amended to reflect that bill’s timeline.
