January 22, 2026 • News

Keep Minimum Wage Increase in Mind When Calculating Tip Credit 

Tipped employees in Hawaii may be paid below the minimum wage if the tipped employee customarily and regularly receives more than $20 a month in tips and the combined amount of wages and tips is more than the applicable minimum wage as specified by the current table. Under current Hawaii wage and hour law, employers may apply a maximum tip credit of $1.25 provided the combined amount the employee receives from the employer and in tips is at least $7.00 more than the minimum wage. 

For more information, see the State of Hawaii Wage Standards Division site and its Tip Credit Notice and Easy Reference Guide. Be sure to update your 2026 operating systems accordingly.