Relating To The Minimum Wage.
The legislation seeks to address the economic challenges faced by low-wage workers in Hawaii, where they struggle to afford housing and other essential expenses. It cites data that a full-time employee earning the current minimum wage struggles to achieve a basic standard of living. The legislative findings support the notion that increasing the minimum wage can enhance purchasing power and positively impact Hawaii's economy, as previous increases have been associated with low unemployment rates.
Bill SB2750 aims to increase the minimum wage in Hawaii progressively over several years, reflecting the needs of workers in a high-cost state. The bill proposes to increase the current minimum wage of $10.10 per hour to $11.50 starting January 1, 2023, with subsequent increases planned to reach $18.00 per hour by 2027. By establishing this progressive increase, the bill intends to ensure that workers earn wages sufficient to meet basic living expenses, as demonstrated by the stark contrast between current earnings and the income needed for self-sufficiency in Hawaii.
While proponents of SB2750 argue that the increases are necessary and justified, there may be concerns regarding the potential impact on businesses, particularly small businesses, which might face challenges in absorbing increased labor costs. Additionally, the bill's repeal of the tip credit could provoke significant debate among hospitality and service industry stakeholders, as it alters how overall compensation for workers in these sectors is calculated. This has led to discussions regarding the balance of worker rights and business viability.