Minimum wage
SB2609, CD1 eventually raises the current minimum wage of $7.25 to $10.10 by January 1, 2018. The minimum wage will be increased by 50 cents in 2015, 75 cents in 2016, 75 cents again in 2017, then an 85 cent increase in 2018 to reach $10.10. The tip credit will be increased also, from the current 25 cents to 50 cents in 2015 then to 75 cents by 2016. The proposed law also requires employees to earn at least $7.00 above minimum wage before an employer can take the tip credit. This threshold used to be 50 cents. How the $7.00 figure was arrived is included in the update of the April 22 blog.
Pay Cards and Direct Deposit
HB1814 CD1 when signed will officially legalize the use of direct deposit and pay cards as a method of payment of wages. Previously, only a declaratory order had allowed the use of pay cards. The law did not change an essential element that has always been required for both which is the use of either must be voluntary on the part of the employee. The signing of this measure will make the suspension notice issued in April moot. The effective date of the measure, Sept. 1, 2014, should provide adequate opportunity for companies using pay cards to come into compliance with the new requirements of the law.
Prevailing Wage Penalties
SB2260 CD1 increases the penalty from $1,000 to $10,000, for interference or delay including falsification of certified payrolls. It also increases the daily penalty for delay from $100 to $1,000 a day. The measure also makes some housekeeping amendments to the law to facilitate enforcement.
HB2413 CD1 clarifies that construction of private-public partnerships is subject to the Chapter 104, Hawaii Revised Statutes.
More to come on these issues.
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