Increases the minimum wage; deletes reference to tip credit; ties future increases to CPI. (SD1)

A BILL FOR AN ACT

SECTION 1. Section 387-2, Hawaii Revised Statutes, is amended to read as follows:

"§387-2 Minimum wages. Except as provided in section 387-9 and this section, every employer shall pay to each employee employed by the employer wages at the rate of not less than [$3.85 per hour beginning January 1, 1988, $4.75 per hour beginning April 1, 1992, and $5.25 per hour beginning January 1, 1993. The hourly wage of a tipped employee may be deemed to be increased on account of tips if the employee is paid not less than twenty cents below the applicable minimum wage by the employee's employer and the combined amount the employee receives from the employee's employer and in tips is at least fifty cents more than the applicable minimum wage.] $5.95 per hour beginning July 1, 2001, and shall be tied thereafter to the same percentage increase as the consumer price index; provided that an employer shall have not more than ten days after the latest consumer price index figure to adjust the wage; provided further that the department shall inform every employer forthwith of the most recent change in the consumer price index and of the last day to adjust wages."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2001.