$18 minimum wage heading to final vote

The bill, unanimously supported by representatives from both chambers, would incrementally increase the wage in $2 increments—to $12 in October, $14 in 2024 and $16 in 2026—until it reaches $18 in 2028.

It also increases the tip credit, which allows employers to pay tipped workers subminimum wage, incrementally to $1.50 an hour in 2028, and makes the Earned Income Tax Credit permanent and refundable.

Anne Frederick, executive director of the Hawaiʻi Alliance for Progressive Action, a nonprofit which has advocated on behalf of raising the minimum wage, sees a link between low wages and homelessness.

“People are living out of their cars, under bridges,” said Frederick. “It’s a combination of the high cost of living and low wages. People are getting pushed out. It’s really sad to see generational families where their kids don’t see a future for themselves here.”