Hawaii tip laws (2026)
Hawaii's minimum wage is $16.00 an hour, and the tip credit is just $1.25, for a $14.75 cash wage. The catch: the credit only applies when wages plus tips reach at least $7 above the minimum, $23 an hour in 2026 and 2027. On January 1, 2028 the minimum rises to $18.00.
Hawaii at a glance
Tip credit allowedHawaii: $16.00 an hour minimum wage. Tipped staff can be paid $14.75 cash, with up to $1.25 counted from tips.
| State minimum wage | $16.00/hr | Statewide from .[1][2] |
|---|---|---|
| Tipped cash wage | $14.75 | Plus up to $1.25 in tips = $16.00.[2] |
| Max tip credit | $1.25 | Counted from tips.[2] |
| Tip pooling | Allowed | Mandatory pools: it depends.[3][4] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee, under federal rules.[4] |
| Card tip payout | Card tips and pooled tips are due by the regular payday. | Hawaii wages are due within 7 days after the pay period.[4][5] |
| Local minimum wages | None | None on file. |
Rates verified against the Hawaii Department of Labor and Industrial Relations, Wage Standards Division on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
02The yes/no sheet
Can you do this in Hawaii?
In Hawaii you can take a tip credit of up to $1.25 an hour and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $14.75 cash and count up to $1.25 in tips. Tips must cover the gap.[2] |
| 02 | Make staff join a tip pool? | Depends | For the state credit, the split has to be agreed by workers. A federal okay alone doesn't settle it.[3][4] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartenders and bussers: yes. Fits a standard pool as a customarily tipped job. For the state credit, the split has to be agreed by workers. Food runners and hosts: Can join a standard pool if the job is customarily tipped. Otherwise only a full-minimum pool.[4][3] |
| 04 | Include cooks and dishwashers? | Depends | Federal law allows cooks and dishwashers in a no-credit pool. Hawaii's worker-agreement and kept-tips rules still have to be met.[3][4] |
| 05 | Give managers or supervisors a share? | No | Federal rule: managers and supervisors get no share of pooled tips. They keep only tips for service they directly and solely provide.[4] |
| 06 | Let an owner keep any of the tips? | No | Employers can't keep workers' tips. An owner with at least 20% equity who actively manages counts as a manager.[4] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | No percentage cap in the state tip-credit rule. Worker agreement and kept-share limits still apply.[3] |
| 08 | Take card processing fees out of tips? | Pro rata (federal) | Federal rule: only the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[4] |
| 09 | Hold card tips until payday? | Deadline | Card tips and pooled tips are due by the regular payday. Hawaii wages are due within 7 days after the pay period.[4][5] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[4][6] |
| 11 | Keep a mandatory service charge for the house? | Depends | Only if you clearly tell guests it doesn't go to staff.[7] |
| 12 | Pay tips on a payroll card? | Yes | Allowed only with consent, a choice of payment, and the state's fee and access protections. Offer another way to get paid too.[8] |
03State vs federal
Hawaii vs federal law
Hawaii sets a stricter rule than federal law on 4 of the 10 rules below, starting with a $16.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Hawaii | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[4] | Hawaii$16.00[1][2] | Stricter |
| Tipped cash wageStricter | Federal$2.13[4] | Hawaii$14.75[2] | Stricter |
| Max tip creditStricter | Federal$5.12[4] | Hawaii$1.25[2] | Stricter |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[4] | HawaiiState law: more than $20 a month in tips, customarily and regularly. Federal law separately uses more than $30 a month.[2][4] | State rule |
| Managers in the poolFederal applies | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[4] | HawaiiFederal rule: managers and supervisors get no share of pooled tips. They keep only tips for service they directly and solely provide.[4] | Federal applies |
| Kitchen in the poolState rule | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[4] | HawaiiFederal law allows cooks and dishwashers in a no-credit pool. Hawaii's worker-agreement and kept-tips rules still have to be met.[3][4] | State rule |
| Card fees from tipsFederal applies | FederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[4] | HawaiiFederal rule applies.[4][6] | Federal applies |
| Card tip payoutState rule | FederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[4] | HawaiiCard tips and pooled tips are due by the regular payday. Hawaii wages are due within 7 days after the pay period.[4][5] | State rule |
| Mandatory service chargesStricter | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[4] | HawaiiStaff's money unless you tell guests otherwise[7] | Stricter |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[4] | HawaiiOvertime after 40 hours a week at 1.5 times the regular rate. Tips beyond the credit aren't part of that rate.[1][3][4][9] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Hawaii fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Hawaii
In Hawaii employers can pay tipped staff $14.75 an hour and count up to $1.25 in tips toward the $16.00 minimum. If tips fall short, the employer makes up the difference.[2]
One server, one slow 30-hour week in Hawaii
A busy week with $37.50 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
Other rates
One statewide rate. No employer-size, industry or youth rates in Hawaii.
Scheduled increases
- Now, since $16.00
- $18.00General statewide minimum wage. 2022 Act 114; HRS 387-2[1]
05Local rates
City and county minimum wages in Hawaii
No city or county minimum wages above the $16.00 state rate are on file for Hawaii.
06Tip pool
Who can be in the tip pool in Hawaii
Hawaii allows tip pools. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Allowed | Fits a standard pool as a customarily tipped job. For the state credit, the split has to be agreed by workers.[4] |
| Bartender | Allowed | Fits a standard pool as a customarily tipped job. For the state credit, the split has to be agreed by workers.[4] |
| Busser | Allowed | Fits a standard pool as a customarily tipped job. For the state credit, the split has to be agreed by workers.[4] |
| Food runner | Depends | Can join a standard pool if the job is customarily tipped. Otherwise only a full-minimum pool.[4] |
| Host | Depends | Can join a standard pool if the job is customarily tipped. Otherwise only a full-minimum pool.[4] |
| Barback | Depends | Can join a standard pool if the job is customarily tipped. Otherwise only a full-minimum pool.[4] |
| Expo | Depends | Can join a standard pool if the job is customarily tipped. Otherwise only a full-minimum pool.[4] |
| Back of house | ||
| Cook | Depends | Federal law allows it in a no-credit pool. Hawaii's worker-agreement and kept-tips rules still apply.[3][4] |
| Dishwasher | Depends | Federal law allows it in a no-credit pool. Hawaii's worker-agreement and kept-tips rules still apply.[3][4] |
| Leadership | ||
| Shift lead | Depends | Depends on actual duties. Anyone who meets the manager test gets no pool share.[4] |
| Manager or supervisor | Not allowed | No share of pooled tips. Actual duties decide who counts as a manager.[4] |
| Owner | Not allowed | No share of pooled tips. Owners with 20% or more who actively manage count as managers.[4] |
- Managers and supervisors
- Federal rule: managers and supervisors get no share of pooled tips. They keep only tips for service they directly and solely provide.[4]
- Owners
- Employers can't keep workers' tips. An owner with at least 20% equity who actively manages counts as a manager.[4]
- Back of house
- Federal law allows cooks and dishwashers in a no-credit pool. Hawaii's worker-agreement and kept-tips rules still have to be met.[3][4]
- Who sets the percentages
- For the state credit, the employer can split pooled tips only on a basis the workers agree to. Only kept shares count.[3]
- Cap on what a pool can take
- No percentage cap in the state tip-credit rule. Worker agreement and kept-share limits still apply.[3]
- Pooling allowed
- Yes. Only tips workers actually receive and keep count toward the credit. Federal role limits still apply.[3]
07Put it to work
Setting up a tip pool in Hawaii
Under Hawaii rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Kim | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Rafa | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Dana | Not in the pool. No share of pooled tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Hawaii's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.
Ferry Tip Manager: support pool split by hours
Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.
Who it's for Full-service restaurants that tip out bussers, runners and bar backs
08Service charges
Service charges vs tips in Hawaii
In Hawaii a mandatory service charge is presumed to belong to staff unless the business clearly tells guests otherwise.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | Staff, unless the business clearly tells guests otherwise.[7] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[4] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[12][13] |
| Guest notice | None needed | Customers have to be clearly told if the charge isn't going to staff. No set font size or format is required.[7] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does Hawaii say?Staff own it unless disclosedStaff, unless the business clearly tells guests otherwise.[7]
- Step 3Check the cityNo city service charge rules on file for Hawaii.
- Menu and receipt notice
- Customers have to be clearly told if the charge isn't going to staff. No set font size or format is required.[7]
- Large-party auto gratuities
- Required or negotiated service charges aren't tips. Hotel and restaurant charges still follow the pay-staff-or-disclose rule.[3][7]
Local service charge rules
No local service charge rules on file for Hawaii.
More on the difference: service charge vs tip.
Service charges
Pay it to staff or tell customers
Hotels and restaurants that add a food or beverage service charge have two choices under state law.[7]
Option 1
- Pay the charge directly to staff
- It counts as their tip income
Option 2
- Keep it for other costs
- Clearly tell customers it isn't going to staff wages or tips
09Card tips
Card tips in Hawaii: fees and payout timing
In Hawaii only the tip's share of the card processing fee can come out of a card tip, under federal rules. Payout deadline: card tips and pooled tips are due by the regular payday. Hawaii wages are due within 7 days after the pay period.
Federal law allows only the actual share of the card fee. Hawaii limits withholding from pay, and no state card-fee permission was found.[4][6]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineHawaii rule Card tips and pooled tips are due by the regular payday. Hawaii wages are due within 7 days after the pay period.[4][5]
- Last dayFinal pay Fired: immediately, or the next working day if that can't happen. Quit: next payday, or at quitting with a full pay period's notice.[14]
Paydays: At least twice a month on set paydays. Wages are due within 7 days after the pay period ends.[5][15]
Paying tips on a payroll card
- Allowed?YesAllowed only with consent, a choice of payment, and the state's fee and access protections.[8]
- Worker consent needed?YesWorkers have to agree in writing or electronically, without pressure. A card can't be a condition of getting or keeping the job.[8]
- Free way to get the money?State ruleAt least 3 free withdrawals per pay period, one for all net pay. Free balance checks and no overdraft fees.[8][16]
- Must you offer another option?YesBefore choosing, workers have to be offered direct deposit, a paper check or a pay card.[8]
- Holding cash tipsState ruleFederal pool payday rules apply. Only tips actually received and kept count. No separate state deadline was found.[3][4]
- Tips shown on the pay stubDependsPay statements show credits claimed, and a changed tip credit needs written notice. Pool records have separate rules.[17]
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
10Records
Records and notices in Hawaii
Keep each tipped worker's tips and hours on record, shift by shift. Hawaii: at least 6 years for payroll records.
Hawaii State
- Tip records Keep payroll, rates, hours, pay and deductions. For tipped staff, add weekly tips, credit taken, and tipped and non-tipped hours.[18][3][17]
- How long to keep them At least 6 years for payroll records.[3]
- Tip credit notice Required. Written notice at hire. Changes in writing or posted before the pay period. A changed hourly credit is reported in writing.[3]
- Posters and forms Hawaii Wage and Hour Law notice / required labor law poster; Written tip-credit notice at hire and required change notices.[1][3]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[4]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[19]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[4]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Think your tips were handled wrong in Hawaii?
Workers in Hawaii can file a tip or wage claim with the Hawaii Department of Labor and Industrial Relations, Wage Standards Division (808-586-8777). Filing is free, and this page can't settle a dispute; the state can.[2]
- Phone
- 808-586-8777[5]
- Website
- labor.hawaii.gov/wsd
Retaliation: No firing or punishing workers for wage complaints, proceedings or testimony. Federal protections apply too.[20][21]
Penalties: Unpaid wages plus an equal amount and 6% yearly interest. Penalties of at least $500 or $100 per violation, whichever is more.[22][20]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedEmployers can't keep tips to cover business losses or costs. Ordinary payroll deductions follow separate Hawaii rules.[4]
- BreakageNot allowedEmployers can't keep tips to cover business losses or costs. Ordinary payroll deductions follow separate Hawaii rules.[4]
- Register shortagesNot allowedEmployers can't keep tips to cover business losses or costs. Ordinary payroll deductions follow separate Hawaii rules.[4]
- UniformsNot allowedEmployers can't keep tips to cover business losses or costs. Ordinary payroll deductions follow separate Hawaii rules.[4]
- Card processing feesDependsNo state permission for card-fee deductions was found. Federal and state withholding rules apply.[4][6]
- A manager's shareNot allowedEmployers, managers and supervisors get no share of pooled tips.[4]
11Law changes
What changed in Hawaii tip law, and what's coming
Next scheduled change: the Hawaii minimum wage goes to $18.00 on . Most recent change: Minimum rose to $16.00. The cash wage with the full credit became $14.75, if the $7 combined-pay test is met ().
- ComingMinimum wage goes to $18.00 (General statewide minimum wage).[1]
- ChangedMinimum rose to $16.00. The cash wage with the full credit became $14.75, if the $7 combined-pay test is met.[2]
- ChangedAct 115 added wage-payment violation orders, revised wage/hour civil penalties and criminal sanctions, and clarified the statutory wage definition.[23]
Key statutes
- HRS 387-2: current and scheduled minimum wages and tip credits
- HAR 12-20-11 and 12-20-12: tipped wages, mutual pooling agreement, notices and records
- HRS 481B-14: restaurant/hotel service-charge distribution or disclosure
- HRS 388-2 and 388-3: wage frequency and final pay
- HRS 388-5.7: pay cards
- HRS 388-6 and 388-10: compensation withholding and remedies
- HRS 387-12 and Act 115 (2025): wage/hour enforcement and remedies
Not covered here? Ask the Hawaii Department of Labor and Industrial Relations, Wage Standards Division at 808-586-8777 or on labor.hawaii.gov/wsd.
12FAQ
Hawaii tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Hawaii tip law, each linked to its source.
What is Hawaii's tipped minimum wage in 2026?
$14.75 an hour in cash with the full $1.25 tip credit. That only works if wages plus tips reach at least $23 an hour.[2]
What is Hawaii's $7 rule?
When does Hawaii's minimum wage go up next?
Can a restaurant set its own tip-pool split?
Can managers share in pooled tips?
No. Federal law bars managers and supervisors from pooled tips. They keep only tips for service they directly and solely provide.[4]
Do restaurant service charges go to staff?
When is a final paycheck due?
Right away after a firing, or the next working day if that can't happen. After a quit, by the next payday.[14]
Can wages go on a payroll card?
Only with the worker's voluntary consent and a choice of check or direct deposit. Cards need 3 free withdrawals each pay period.[8]
13Compare
How Hawaii compares with nearby states
Hawaii borders California, Alaska and Washington. California and Washington pay a higher minimum wage than Hawaii's $16.00. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
States with the same rules
Same tip credit class as Hawaii: Tip credit, cash wage above federal.
- Connecticut tip laws$16.94 min wage $6.38 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Iowa tip laws$7.25 min wage $4.35 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Arkansas tip laws$11.00 min wage $2.63 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Wisconsin tip laws$7.25 min wage $2.33 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Arizona tip laws$15.15 min wage $12.15 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Florida tip laws$15.00 min wage $11.98 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
The law decides who's in. Ferry runs the split.
See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Hawaii setup.
14Sources
Sources for Hawaii tip laws
Every figure on this page links to one of these 23 sources: 20 for Hawaii and 3 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Minimum Wage and Overtime – Wage Standards Divisionlabor.hawaii.gov · Official source · Checked Pinpoint: Minimum Wage list; Overtime paragraphlabor.hawaii.gov/wsd/minimum-wage
What the source says
“$16.00 per hour beginning January 1, 2026; and $18.00 per hour beginning January 1, 2028.”
“$18.00 per hour beginning January 1, 2028.”
“Generally, overtime is required after 40 hours worked in a workweek.”
- 2Tip Credit Notice and Easy Reference Guide, HWHL-1 aHawaii Department of Labor and Industrial Relations · Official source · Page updated · Checked Pinpoint: p. 1, effective-period table; Exhibit 4, physical p. 5; p. 1 threshold paragraphlabor.hawaii.gov/wsd/files/2022/06/Tip_Credit_Notice_with_exhibits_June2022.pdf
What the source says
“$16.00 + $7.00 tips = $23.00 per hour $1.25 $14.75 January 1, 2026 to December 31, 2027”
“$1.25 $8.25 $14.75 $23.00”
“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 shown in the table below.”
- 3Hawaii Administrative Rules, Title 12 Chapter 20, Wage and HourHawaii Department of Labor and Industrial Relations · Official source · Page updated · Checked Pinpoint: 12-20-11(a), physical p. 4; 12-20-11(d), physical p. 4; 12-20-11(b), physical p. 4labor.hawaii.gov/wp-content/uploads/2013/02/12-20.pdf
What the source says
“only the amounts actually received and retained by each individual shall be considered tips.”
“Tips received in excess of the tip credit shall not be included in the regular rate.”
“tip credit may be taken only for hours worked in the occupation in which the employee customarily and regularly receives more than $20 a month in tips.”
- 4Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 3; opening paragraph; Typical Problems, Overtime Problems, item 1www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“Employers claiming a tip credit must be able to show in each workweek that tipped employees receive at least the full federal minimum wage when direct (or cash) wages and the tip credit amount are combined.”
“a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.”
“When an employer takes a tip credit, overtime must be calculated based on the full minimum wage, which is currently $7.25 an hour, not the lower direct (or cash) wage payment.”
- 5Unpaid Wages – Wage Standards Divisionlabor.hawaii.gov · Official source · Checked Pinpoint: Pay Dates section; Pay Frequency section; Contact footerlabor.hawaii.gov/wsd/unpaid-wages
What the source says
“requires the employer to pay the employee all wages earned within seven days after the end of each pay period.”
“every employer is required to pay wages to all employees at least twice during each calendar month, on regular paydays designated in advance by the employer.”
“TEL: (808) 586-8777”
- 6HRS 388-6, Withholding of wagesHawaii Legislature · Official source · Page updated 1977 · Checked Pinpoint: 388-6 opening clausedata.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0388/HRS_0388-0006.htm
What the source says
“except where required by federal or state statute or by court process or when such deductions or retentions are authorized in writing by the employee”
- 7HRS 481B-14, Hotel or restaurant service charge; dispositionHawaii Legislature · Official source · Page updated 2015 · Checked data.capitol.hawaii.gov/hrscurrent/Vol11_Ch0476-0490/HRS0481B/HRS_0481B-0014.htm
What the source says
“shall distribute the service charge directly to its employees as tip income or clearly disclose to the purchaser of the services that the service charge is being used to pay for costs or expenses other than wages and tips of employees.”
- 8Direct Deposits, Debit Cards, Electronic Pay StatementsHawaii Department of Labor and Industrial Relations · Official source · Page updated 2014 · Checked Pinpoint: 388-5.7(a) reproduced by agency; 388-5.7(a)(4); 388-5.7(a)(8)(B)labor.hawaii.gov/wsd/direct-deposits-debit-cards-electronic-pay-statements-2
What the source says
“an employer shall not pay wages due to the employer’s employees by use of a pay card unless the following requirements are satisfied:”
“The employee shall voluntarily authorize the payment of wages using a pay card in writing or via electronic signature, without intimidation, coercion, or fear of discharge or reprisal for refusal to accept the pay card or pay card account;”
“The ability during each pay period for the employee to make at least three free withdrawals from the pay card, at least one of which permits withdrawal of the full amount of the employee’s net wages on the card at a federally insured depository institution”
- 9HRS 387-3 overtimedata.capitol.hawaii.gov · Official source · Checked Pinpoint: 387-3(a)data.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0387/HRS_0387-0003.htm
What the source says
“at a rate not less than one and one-half times the regular rate at which the employee is employed.”
- 10Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Regulatory History 2020-2024, item 3www.dol.gov/agencies/whd/flsa/tips
What the source says
“a federal court vacated the revision, with the effect of reinstating the Department’s original dual jobs regulation.”
- 11Field Assistance Bulletin No. 2026-1U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: p. 1, introductory paragraphswww.dol.gov/sites/dolgov/files/WHD/fab/fab2026-1.pdf
What the source says
“These withdrawn opinion letters and the FOH provision that implemented them should no longer be relied upon as WHD enforcement guidance.”
- 12Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 13Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 14HRS 388-3, Employees separated from payroll before paydaysHawaii Legislature · Official source · Page updated 1963 · Checked Pinpoint: 388-3(a); 388-3(b), notice exception; 388-3(a), conditional delay onlydata.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0388/HRS_0388-0003.htm
What the source says
“Whenever an employer discharges an employee either with or without cause, the employer shall pay the employee's wages in full at the time of discharge or if the discharge occurs at a time and under conditions which prevent an employer from making immediate payment, then”
“except that if the employee gives at least one pay period's notice of intention to quit, the employer shall pay all wages earned by the employee at the time of quitting.”
“then not later than the working day following discharge.”
- 15HRS 388-2 paydaysdata.capitol.hawaii.gov · Official source · Checked Pinpoint: 388-2(b), director exceptions in(c); 388-2(c)(2), director permission required; 388-2(c)(1), director permission requireddata.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0388/HRS_0388-0002.htm
What the source says
“The earned wages of all employees shall be due and payable within seven days after the end of each pay period.”
“Pay earned wages within fifteen days after the end of each pay period.”
“Establish regular paydays less frequently than semimonthly; provided that the employee shall be paid in full at least once each calendar month on a regularly established schedule;”
- 16HRS 388-5.7 current pay-card lawdata.capitol.hawaii.gov · Official source · Checked Pinpoint: 388-5.7(a)(8)(B)data.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0388/HRS_0388-0005_0007.htm
What the source says
“The ability during each pay period for the employee to make at least three free withdrawals from the pay card”
“at least one of which permits withdrawal of the full amount of the employee's net wages”
- 17HRS 387-6 payroll records and noticesdata.capitol.hawaii.gov · Official source · Checked Pinpoint: 387-6(c)(8); 387-6(a)(3)data.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0387/HRS_0387-0006.htm
What the source says
“Any other compensation, including allowances, if any, claimed as part of the minimum wage;”
“The hours worked each day and each workweek by each employee;”
- 18Notice of Act 70, Pay Statements and RecordkeepingHawaii Department of Labor and Industrial Relations · Official source · Page updated · Checked Pinpoint: 387-6(a) agency notice, physical p. 1labor.hawaii.gov/wsd/files/2013/07/Notice-Act-70-Pay-Statements-6-24-13.pdf
What the source says
“contemporaneous, true, and accurate" payroll records.”
- 19Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
- 20HRS 387-12, Penalties; collection of unpaid wagesHawaii Legislature · Official source · Page updated 2025 · Checked Pinpoint: 387-12(a)(2); 387-12(a), qualifying triggersdata.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0387/HRS_0387-0012.htm
What the source says
“For a penalty of not less than $500 or $100 for each violation, whichever is greater.”
“without equitable justification or violates this chapter or the rules adopted under this chapter shall be liable:”
“who discharges or in any other manner discriminates against any employee because the employee has made a complaint to the employee's employer”
- 21FLSA Fact Sheet 77A retaliationU.S. Department of Labor · Official source · Checked Pinpoint: Coveragewww.dol.gov/agencies/whd/fact-sheets/77a-flsa-prohibiting-retaliation
What the source says
“the protection applies to all employees of an employer even in those instances in which the employee’s work and the employer are not covered by the FLSA.”
- 22HRS 388-10, PenaltiesHawaii Legislature · Official source · Page updated 2022 · Checked Pinpoint: 388-10(a)(1); 388-10(a)(2)data.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0388/HRS_0388-0010.htm
What the source says
“for a sum equal to the amount of unpaid wages and interest at a rate of six per cent per year from the date that the wages were due;”
“For a penalty of not less than $500 or $100 for each violation, whichever is greater.”
- 23Act 115 of 2025, SB 1454data.capitol.hawaii.gov · Official source · Checked Pinpoint: Section 8 physical PDF 5; Approval physical PDF 5; Section 3, physical PDF 3; minimum-wage exception preserveddata.capitol.hawaii.gov/sessions/sessionlaws/Years/SLH2025/SLH2025_Act115.pdf
What the source says
“This Act shall take effect upon its approval.”
“(Approved May 29, 2025.)”
“Except for the purposes of the last sentence of section 387-2, “wage” shall not include tips or gratuities of any kind.”
15Methodology
How we research these pages
Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.
- 1
Official sources only
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
- 2
Every figure is linked
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
- 3
Re-checked on a schedule
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
- 4
Gaps are left out, not guessed
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
What changed on this page
- First version of this page. Every figure was checked against the official sources listed on this page.
Researched by Ferry's tip operations research team. Last reviewed .
Changes to the law itself are listed in What changed and what's coming.
16Every state
Tip laws in every state
Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.
- No tip creditNo tip credit
- Above $2.13Tip credit, cash wage above federal
- $2.13 cashTip credit, federal cash wage
- FederalFederal rates apply
51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.