If enacted, SB2928 would amend Section 387-2 of the Hawaii Revised Statutes to enact a framework for establishing the minimum wage rate based on CPI adjustments, starting from September 30, 2028. This change means that beginning January 1, 2029, the minimum wage would be calculated annually to the nearest twenty-five cents based on inflation metrics, a step aimed at preventing wage stagnation and ensuring that workers' earnings reflect the rising costs of living. The bill follows previous legislation (Act 114) which already set a pathway to $18 per hour by 2028, but it recognizes that this may not be sufficient for actual living conditions.
Summary
SB2928, introduced to the Hawaii Legislature, seeks to address the persistent issue of high cost of living and low wage earnings within the state. The bill aims to enhance financial security for low wage workers by indexing minimum wage rates to the consumer price index (CPI), ensuring that wage adjustments keep pace with inflation. The legislature recognizes that many residents struggle to afford basic necessities, emphasizing that a minimum wage worker must work an unsustainable number of hours to afford even modest housing. As Hawaii's costs for essentials continue to rise, this legislative effort is seen as a necessary response to protect vulnerable workers.
Contention
Notably, the bill's approach to tying wage increases to the CPI is already being used in several other states, indicating a trend toward such protections for workers. However, the potential opposition to SB2928 may arise from business interests concerned about the implications of consistently rising labor costs. Critics may argue that while ensuring minimum wage adjustments is important, it could create a financial burden on small businesses that may struggle to keep up with increases in the minimum wage. The dialogue surrounding this bill will likely focus on balancing the needs of workers with economic realities for employers.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.