Executive Director’s Message: Be prepared! Minimum wage rises to $10.10 January 1st, 2018

There are creative ways to help save on labor costs as the minimum wage goes up to $10.10 at the turn of the new year.

One of those ways, is to utilize the tip credit.

Both the state Department of Labor and Industrial Relations and the U.S. Labor Department’s Wage and Hour Division offer resources to help you lawfully take the tip credit.

The first page of a 2014 state notice details the increases in minimum wage which began in that year. The last page of the six-page document contains a table explaining to tipped employees and employers alike, various tip credits and adjusted minimum wage amounts, given different scenarios.

< http://labor.hawaii.gov/wsd/files/2014/06/Tip-Credit-Notice-with-exhibits-June-2014.pdf >

With a Hawaii minimum wage of $10.10 per hour, an employer may pay an adjusted minimum wage of $9.35.

For salaried employees, the days of putting a manager on salary to avoid paying overtime are over, under certain circumstances, and depending on the level of pay.

According to key provisions of a federal ruling,

< https://www.dol.gov/whd/overtime/final2016/ >, if any salaried employee is paid less than the $47,476 federal salary threshold, you have to pay overtime at time-and-a-half, for hours worked beyond 40 hours in one week.

With some 6,000 placards issued by the state Health Department around the state, that indicates a huge impact to every payroll, from mom-and-pop shops to sprawling national chains.

Membership in the Hawaii Restaurant Association lends to the industry’s strength of voice in issues affecting all of us. For additional guidance or information, please feel free to visit our website at https://hawaiirestaurant.org/, or give us a call.

Gregg Fraser, Executive Director of the Hawaii Restaurant Association.

2909 Waialae Ave. #22   Honolulu HI. 96826  

808-944-9105

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