Hawaii’s economy is driven by tourism, hospitality, military base employment, and construction. The state has implemented aggressive minimum wage increases (Act 114) that will reach $18/hr by 2028. Hawaii’s tipped employee rules are unique nationally, and the 6-year statute of limitations is among the longest in the country.
Minimum Wage in Hawaii (2025)
Hawaii’s minimum wage is $14.00/hr as of January 2025, rising to $18/hr by 2028 under HB 2510 (Act 114). The wage applies statewide with no local variances.
Tipped employees: Hawaii has an unusual structure. Tipped workers must receive $1.25/hr as base pay, plus tips, with a maximum tip credit of $0.75/hr (totaling a minimum of $1.25 + $0.75 = $2.00/hr if tips meet the credit). This differs from most states. In practice, if tips don’t reach $0.75/hr, the employer must make up the difference to reach $14/hr total compensation. Always request detailed pay stubs showing base wage, tip credit, and total compensation.
Overtime Pay in Hawaii
Hawaii follows the federal FLSA standard: 1.5x pay for hours over 40 per week. There is no daily overtime rule as in some states. However, employees in certain industries (e.g., agriculture, hospital workers) may have additional protections under Hawaii Revised Statutes § 388-1 et seq.
Common violations in Honolulu hospitality involve miscalculating overtime for housekeeping staff and kitchen workers. Military base contractors occasionally misclassify workers to avoid overtime obligations.
Hawaii Wage and Hour Law
The primary state wage law is Hawaii Revised Statutes § 388-1 et seq. (Hawaii Wage and Hour Law) and HRS § 388-3 (Hawaii Wage Payment Law). Penalties include:
- Unpaid wages plus interest
- Attorney fees and costs
- Potential liquidated damages
Final Paycheck Rules in Hawaii
| Separation Type | Deadline |
|---|---|
| Fired or laid off | Within 15 days of termination, next regular payday |
| Resigned | Next regular payday |
Hawaii requires final paychecks within 15 days if the employer is not on a regular payday schedule. Vacation payout is not required unless the employer policy or written contract promises it—but if accrued, it is treated as wages.
Hawaii Department of Labor and Industrial Relations (DLIR)
URL: labor.hawaii.gov Wage and Hour Division: labor.hawaii.gov/vsd/home/
File a wage complaint online or by mail. Hawaii’s unusually long 6-year statute of limitations applies to wage claims under the Wage Payment Law.
Real Situations: Common Hawaii Wage Disputes
A resort in Maui hires housekeeping staff and claims the tip credit allows their base wage to remain at $1.25/hr, even though tips never average $0.75/hr. Under Hawaii law, the employer must guarantee the worker reaches the full $14/hr minimum. The resort owes back wages covering all hours where total compensation fell short.
A military base contractor in Pearl Harbor misclassifies construction laborers as “independent contractors,” withholding payroll taxes and denying overtime. After 50-hour weeks, workers are paid a flat daily rate. The contractor faces a wage claim covering unpaid overtime and payroll taxes owed.
A restaurant in Honolulu terminates a server and issues a final paycheck 30 days later. Hawaii law requires payment within 15 days of termination. The worker files a complaint with DLIR and recovers wages plus interest.
Common Mistakes Hawaii Workers Make
Many workers in resort hospitality assume Hawaii’s tip credit is the same as the federal minimum tip wage ($2.13/hr). It’s not. Hawaii’s structure is unique: your base wage is $1.25/hr, and the employer can credit tips (up to $0.75/hr) toward the $14/hr minimum. If you earn only $12/hr total (base + tips), your employer must pay an additional $2/hr. Always calculate your total compensation and request detailed payroll records.
Workers on military bases assume contractor employers are subject to different wage rules (because they’re working for a federal contractor). The contractor must comply with Hawaii state wage laws regardless of federal contracts. File a state claim if unpaid wages occur.
Seasonal workers in Honolulu construction sometimes accept “per-project” pay without understanding that Hawaii’s overtime rules still apply. If you work over 40 hours in a week, you’re owed overtime—never accept a lump-sum project rate as a substitute.
How to File a Wage Claim in Hawaii
Option 1 — Hawaii Department of Labor and Industrial Relations (DLIR). Visit labor.hawaii.gov/vsd/programs/wage-and-hour/ to file a wage complaint. Include paystubs, timesheets, employment contracts, and written communication about the wage dispute. DLIR will investigate and attempt mediation or issue findings.
Option 2 — Department of Labor (FLSA). File with the federal Wage and Hour Division at dol.gov/agencies/whd/contact. Federal claims may recover unpaid overtime under the FLSA alongside state remedies.
Option 3 — Civil lawsuit. Hawaii small claims court handles claims up to $5,000. For larger claims, file in district or circuit court; many attorneys handle wage cases on contingency.
Statute of Limitations
| Claim Type | Limitation Period |
|---|---|
| Hawaii Wage Payment Law | 6 years |
| Hawaii Wage and Hour Law | 2 years |
| FLSA (federal, non-willful) | 2 years |
| FLSA (federal, willful) | 3 years |
Hawaii’s 6-year statute of limitations for wage payment claims is significantly longer than most states, offering workers extended time to file.
Related Guides
- Employment Rights Guide — federal wage and overtime rules that apply in Hawaii alongside state law
- Hawaii Small Claims Court — sue for unpaid wages up to $5,000 without a lawyer
- Hawaii Eviction Notice Requirements — tenant protections for Hawaii renters
- Hawaii Security Deposit Laws — your rights as a Hawaii renter
- Hawaii Tenant Rights Guide — complete tenant rights guide for Hawaii renters
This article is for informational purposes only and does not constitute legal advice. Last reviewed: March 2026.