State lawmakers passed legislation Tuesday that would incrementally hike the state's minimum wage to $18 an hour by 2028, potentially the highest in the nation.
Advocates say the raise is badly needed in a state that routinely tops lists for the most expensive housing and cost of living. But some businesses are warning they will have to cut staff or even close because they won't be able to afford the greater pay.
The $18 minimum would be the highest dollar amount among the 50 states and the District of Columbia. However, some states automatically boost their minimum wage when the cost of living increases, which means places like California, which currently has a $15 minimum wage, could have a higher wage in six years — given inflation.
The House and Senate approved the measure by wide margins. The bill now goes to Gov. David Ige, who has said he supports an $18 minimum wage.
Hawaiʻi's minimum wage is currently $10.10 an hour. If signed, the bill will raise the rate in increments over the next several years, starting with $12 on Oct. 1, then $14 in 2024, $16 in 2026, and finally $18 in 2028.
Lawmakers last voted to incrementally raise the minimum wage in 2014, when the minimum wage was $7.25. The most recent increase was in January 2018 from $9.25 to $10.10.
House Speaker Scott Saiki said a study showing that 42% of Hawaiʻi households struggle to make ends meet was a big factor behind his support for the increase. The Hawaiʻi State AFL-CIO also endorsed going to $18.
Saiki...
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