Hawaii Minimum Wage: Current Rate & Scheduled Increases

The Fair Labor Standards Act (FLSA), 29 U.S.C. section 206, establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since 2009. The FLSA applies to all employers engaged in interstate commerce with at least one employee, covering the vast majority of private employers in the United States. Under federal law, employers must pay covered employees at least $7.25 per hour for all hours worked, with limited exceptions for certain categories such as tipped employees (minimum $2.13 per hour if tips bring total to $7.25), trainees, apprentices, and disabled workers with special certificates.

The FLSA is enforced by the U.S. Department of Labor's Wage and Hour Division. Violations can result in back pay, liquidated damages equal to unpaid wages, civil penalties up to $10,000 per violation, and in cases of willful violations, criminal penalties including fines and imprisonment. Employees may file complaints with the Department of Labor or pursue private lawsuits under the FLSA. The statute of limitations is two years for standard violations and three years for willful violations.

Federal law does not preempt state minimum wage laws; when state law provides greater protection, the higher standard applies. The FLSA establishes a federal floor, not a ceiling, meaning states and localities may require higher wages.

Hawaii Revised Statutes section 387-2 establishes Hawaii's minimum wage at $14.00 per hour effective January 1, 2024. This is substantially higher than the federal minimum wage of $7.25 per hour under the FLSA, and Hawaii employers must comply with the higher state standard. Hawaii law applies to all employers in the state, including private sector employers, nonprofits, and government entities, with very limited exceptions.

Unlike federal law, Hawaii's minimum wage is not a static amount. Section 387-2(f) mandates annual automatic adjustments effective January 1 each year, based on the Consumer Price Index (CPI) for urban wage earners and clerical workers. The Department of Labor and Industrial Relations (DLIR) calculates and announces the adjusted rate each year. For example, the minimum wage increased from $12.00 in 2023 to $13.00 in 2024, and then to $14.00 on January 1, 2024 (reflecting interim legislative adjustments). This automatic adjustment mechanism ensures Hawaii's minimum wage remains responsive to cost-of-living changes, a protection absent from federal law.

Hawaii law covers employees regardless of immigration status and does not exempt tipped employees, trainees, or apprentices at lower wage levels like federal law does. Hawaii Revised Statutes section 387-1 defines "employer" broadly to include all persons, partnerships, and corporations, and section 387-2 applies to all employees in Hawaii. The state's minimum wage protections are stronger than federal law in three critical ways: (1) the wage floor is $6.75 higher per hour, (2) the wage automatically adjusts for inflation annually, and (3) there are fewer categorical exemptions.

Remedies under Hawaii law include unpaid wages, pre-judgment interest, attorney fees, and court costs. Hawaii Revised Statutes section 388-4 requires employers to pay unpaid wages plus interest, and employees can bring private civil actions. The Hawaii Department of Labor and Industrial Relations enforces the law and may issue cease-and-desist orders and penalties.

Hawaii's minimum wage law has very few exceptions compared to federal law. Section 387-2 does not provide lower wage rates for tipped employees, unlike the FLSA, which allows a $2.13 tipped minimum. Hawaii requires payment of the full $14.00 minimum wage even if an employee receives tips; tips are additional earnings, not credited against minimum wage obligations.

Section 387-1 and 387-2 exempt only specific categories of workers: (1) employees receiving vocational rehabilitation training approved by the state, (2) learners, apprentices, and messengers under specific age thresholds with written apprenticeship agreements, (3) employees with disabilities whose earning capacity is impaired, but only with a special permit from DLIR, and (4) full-time students working at educational institutions under certain conditions. However, these exemptions are narrowly construed and require employer compliance with strict documentation and permit requirements.

At-will employment doctrine does not exempt employers from minimum wage obligations; employers may terminate employees at will but cannot avoid paying minimum wage for hours worked. Independent contractors are not covered by minimum wage law; however, Hawaii courts apply strict tests for contractor classification. Under Hawaii Revised Statutes section 386-1, the ABC test applies: the worker must be free from control and direction, must work outside the employer's usual course of business, and must be customarily engaged in an independently established trade or profession. Misclassification of employees as contractors to avoid minimum wage liability violates both wage and hour law and workers' compensation law.

Union employees covered by a collective bargaining agreement are not exempt from the minimum wage if the agreement pays less; the minimum wage establishes a floor that cannot be negotiated below. Federal government contractors may be covered by the Davis-Bacon Act or Service Contract Act, which may impose higher prevailing wage requirements than Hawaii's minimum wage.

Step 1: Document all evidence of non-compliance. Keep copies of all pay stubs, time records, emails discussing wages, screenshots of payment information, and written wage agreements. Create a written log noting dates worked, hours per day, dates paid, and amounts received. If paychecks are missing or incomplete, document the missing pay and dates. Save all communications from your employer about wages, including text messages, emails, or verbal statements you document immediately after they occur. This documentation is critical because you have the burden of proving hours worked; contemporaneous records are far more persuasive than later testimony.

Step 2: Attempt internal complaint to your employer before filing with an agency. Request a meeting with your manager, HR department, or owner and present your wage calculation in writing, showing the discrepancy between hours worked and pay received compared to Hawaii's $14.00 minimum wage. Clearly state that you are requesting back pay for all unpaid wages from the past six years (Hawaii's statute of limitations period). Send this complaint via email or written letter so you have proof of the complaint and the date. Keep a copy for your records. Note the date and substance of any response. This step is not legally required but creates a documented record and gives the employer an opportunity to remedy the violation, which may affect how much the employer owes in penalties and attorney fees if the case proceeds to court.

Step 3: File a wage complaint with the Hawaii Department of Labor and Industrial Relations (DLIR). Visit the DLIR website at labor.hawaii.gov and navigate to the Wage and Hour Division complaint page. You may file online, by phone at (808) 586-8705, or in person at any DLIR office. Complete the wage complaint form (Form HW-13, Wage Complaint), providing your name, address, phone number, employer name and address, dates of employment, wages paid, hours worked, and a detailed description of how your wages fell below the $14.00 minimum wage. Include specific dates, pay periods, and amounts. There is no filing fee. Submit the complaint within six years of the violation (the statute of limitations under Hawaii Revised Statutes section 657-1). DLIR recommends filing as soon as you discover the violation to preserve evidence and witness testimony.

Step 4: Understand the DLIR investigation process. After filing, DLIR's Wage and Hour Division will conduct an investigation, typically within 30-60 days depending on caseload. The investigator will contact your employer in writing requesting wage records, time records, and business documentation. Your employer must preserve all records related to your employment. You may be contacted for an interview; DLIR will ask detailed questions about hours worked, how you tracked time, dates of payment, and wage amounts. The investigation is confidential. DLIR will examine employer payroll records to verify your claim. If DLIR finds a violation, the department may order the employer to pay back wages, interest (typically 6% per annum under Hawaii law), and penalties of up to 30% of unpaid wages. DLIR may also refer the case for civil enforcement or criminal prosecution for egregious violations.

Step 5: Consult an employment attorney if DLIR's investigation does not resolve your claim or if your claim is denied. Contact a lawyer who specializes in wage and hour law or employment law in Hawaii; most offer free initial consultations. An attorney can file a private lawsuit under Hawaii Revised Statutes section 387-2 in district court (for claims under $10,000) or circuit court (for larger claims). In court, you can recover unpaid minimum wages for the past six years, pre-judgment interest, and attorney fees if you prevail. Many employment attorneys work on a contingency fee basis, meaning they take a percentage of your recovery rather than an upfront fee, making legal representation accessible. An attorney can also advise whether your claim is strong, what additional documentation would help, and whether settlement negotiations are appropriate before litigation.