CONFERENCE COMMITTEE REP. NO. 133-14

Honolulu, Hawaii

                 , 2014

RE:    S.B. No. 2609

       S.D. 1

       H.D. 2

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2609, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO MINIMUM WAGE,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Increase the minimum wage rate to:

          (A)  $7.75 per hour beginning January 1, 2015;

          (B)  $8.50 per hour beginning January 1, 2016;

          (C)  $9.25 per hour beginning January 1, 2017; and

          (D)  $10.00 per hour beginning January 1, 2018;

     (2)  Increase the tip credit to:

          (A)  50 cents per hour beginning January 1, 2015; and

          (B)  75 cents per hour beginning January 1, 2016; and

     (3)  Establish that beginning January 1, 2015, the combined amount a tipped employee receives in wages and tips must be at least $7.00 more than the applicable minimum wage in order for an employer to apply the tip credit for the employer's tipped employee.

     Your Committee on Conference finds that the hourly minimum wage in Hawaii has not increased since 2007.  Since that time, the cost of living has risen steadily, while worker purchasing power has continued to diminish.  In Hawaii, the cost of living is higher than that of much of the rest of the nation, which compels many individuals to work two or more jobs to maintain a basic standard of living.  Your Committee on Conference believes that providing minimum wage workers with a higher hourly pay will further the economic recovery of Hawaii and help lift Hawaii's working poor out of poverty.

     Your Committee on Conference has amended this measure by changing the minimum wage rate beginning January 1, 2018, from $10.00 per hour to $10.10 per hour.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2609, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2609, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ MARK M. NAKASHIMA, Co-Chair	____________________________ CLAYTON HEE, Chair
____________________________ SYLVIA LUKE, Co-Chair	____________________________ DAVID Y. IGE, Co-Chair