Minimum wage to increase to $7.75 Jan. 1

LIHUE — The Hawaii State Department of Labor and Industrial Relations announced Wednesday that the minimum wage for most employers will increase to $7.75 per hour beginning Jan. 1. 

“This increase will boost consumer demand and jobs because minimum and low-wage workers spend most, if not all, of their increased wages and therefore will generate economic activity and contribute to Hawaii’s strengthening economy,” DLIR Director Dwight Takamine said in a press release.

The minimum wage will rise to $8.50 per hour on Jan. 1, 2016, $9.25 on Jan. 1, 2017, and $10.10 on Jan. 1, 2018. Tipped employees may be paid 50 cents below the minimum wage beginning on Jan. 1, and 75 cents below the minimum wage beginning on Jan. 1, 2016, as long as the combined amount the employee receives from the employee’s employer and tips is at least $7 more than the minimum wage.

Hawaii’s unemployment rate was 4 percent in October while the record labor force included 669,850 individuals.