As an HR professional, I’ve seen firsthand how minimum wage changes ripple through payroll systems, employee morale, and business strategies. With Hawaii’s minimum wage set to climb steadily through 2028, 2025 serves as a critical planning year for employers. In this guide, we’ll break down everything you need to know about the Hawaii state minimum wage in 2025, including compliance updates, answers to your top questions, and actionable tips to prepare your workforce.
What Is Hawaii’s Minimum Wage in 2025?
In 2025, Hawaii’s minimum wage will remain at 14.00 per hour for non-tipped employees. This follows a series of incremental increases mandated by Act 114 (2022), which aims to raise the state’s minimum wage to 18.00 by 2028. Here’s the full schedule:
- 2024: $14.00/hour
- 2026: $16.00/hour
- 2028: $18.00/hour
For tipped workers, the tip credit allows employers to pay 1.25 less than the standard rate, provided employees earn at least $7.00 more per hour in combined wages and tips. By 2028, this credit increases to 1.50.
What Should the Minimum Wage Be in 2025?
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While Hawaii’s rate stays at 14.00 in 2025, advocates argue even this isn’t enough. A 2020 study found that a single adult here needs over 18/hour to cover basics—a figure the state won’t reach until 2028. For HR teams, this highlights the importance of competitive pay strategies to retain talent in Hawaii’s high-cost environment.
What Is the Salary Threshold for Exempt Employees in Hawaii 2025?
Hawaii follows federal FLSA guidelines for exempt employees (executive, administrative, professional roles). As of 2024, the threshold is 684/week (35,568 annually), but this may rise by 2025 if federal updates occur. Stay alert for changes to avoid misclassification penalties.
What Is Utah’s Minimum Wage in 2025?
Utah adheres to the federal minimum wage of 7.25/hour, with no planned increases. This stark contrast with Hawaii’s 14.00 underscores regional disparities in cost of living and labor laws.
What States Are Going to $15/Hour?
By 2025, several states will hit or approach $15:
- California: $16.50 (large employers)
- Connecticut: $15.69
- New York: $15.00 (downstate)
- Massachusetts: $15.00
- Washington: $16.28
These trends reflect a national push toward “living wages,” pressuring employers to stay competitive.
How Hawaii’s Minimum Wage Compares to the Cost of Living
Living in paradise isn’t cheap. Hawaii’s cost of living is 88% higher than the U.S. average, driven by housing, groceries, and utilities. Even at 14/hour, a full-time worker earns just $29,120 annually—far below the 47,000 needed for a single adult to live comfortably here (MIT Living Wage Calculator).
I’ve spoken to local business owners who share mixed feelings. While they support fair wages, rising labor costs force tough choices: raising prices, reducing staff, or automating tasks. One Maui restaurant owner told me, “We want to pay well, but every dollar increase affects our bottom line.”
Compliance Tips for HR Teams
Navigating Hawaii’s wage laws requires precision. Here’s how to stay compliant and competitive:
- Audit Payroll Now
- Ensure all employees (including part-time and seasonal workers) meet the $14.00/hour floor.
- Review tipped employee records to confirm their wages + tips meet the $21.00/hour minimum.
- Address Wage Compression
- Adjust pay scales for senior staff to maintain motivation. Example: If entry-level wages jump from 12 to 15 to 17.
- Update Job Postings
- Hawaii’s Pay Transparency Law (effective 2024) requires salary ranges in job listings. Include hourly rates to attract candidates upfront.
- Invest in Payroll Software
- Automate overtime calculations (1.5x after 40 hours/week) and track public works projects, which require daily overtime after 8 hours.
Preparing for 2026 and Beyond
While 2025’s wage stays steady, the jump to $16.00 in 2026 will demand proactive planning:
- Budget Forecasting: Model how wage hikes will impact operating costs. For a 20-employee business, the 2026 increase adds $83,200 annually.
- Employee Retention: Boost benefits like flexible schedules or training programs to offset turnover risks.
- Tech Upgrades: Adopt self-service kiosks or scheduling tools to streamline operations.
The Bigger Picture: Why This Matters
Hawaii’s wage increases aim to bridge the gap between earnings and living costs, but they also challenge small businesses. As one Oahu retail manager told me, “We’re caught between supporting our team and staying open.”
For HR professionals, the key is balance. By staying informed, leveraging technology, and fostering open dialogue with employees, you can turn regulatory challenges into opportunities for growth.
Final Thoughts
Hawaii’s 2025 minimum wage may seem like a pause, but it’s a crucial window to prepare for the future. Whether you’re adjusting pay scales, exploring automation, or advocating for policy changes, proactive steps today will ensure your organization thrives in Hawaii’s evolving economic landscape.