Hawaii tip pooling laws & tipped minimum wage
In Hawaii, employers can pay tipped workers $14.75/hr as long as tips bring them to the $16.00 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $16.00/hr |
| Minimum cash wage for tipped workers | $14.75/hr |
| Maximum tip credit | $1.25/hr |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the Hawaii labor department. Not legal advice.
What's specific to Hawaii
Hawaii allows only a $1.25 tip credit, and only when the employee’s wage plus tips exceeds the minimum wage by at least $7.00/hr.
Hawaii’s tip credit is tiny — and only allowed if you clear the minimum by $7.00
Hawaii’s minimum wage is $16.00 an hour in 2026, part of a schedule set by Act 114 (2022) that rises to $18.00 an hour on January 1, 2028. Employers may pay a tipped cash wage as low as $14.75, claiming a tip credit of only $1.25 — far smaller than the federal credit.
Hawaii attaches a strict condition the federal rule does not have. An employer may take the tip credit only if your combined cash wage plus tips is at least $7.00 an hour more than the minimum wage. At the 2026 minimum of $16.00, that means you must actually make at least $23.00 an hour in wages and tips before any tip credit is allowed.
If you do not clear that threshold, you are owed the full minimum wage
The $7.00 condition protects you. In any week where your wages plus tips do not reach at least $7.00 above the minimum wage, your employer cannot use the tip credit at all and owes you the full $16.00 an hour in cash.
Your employer must also give you written notice before taking the tip credit. Without that notice, the credit does not apply and you are owed the full minimum wage for the affected time.
How to recover unpaid or withheld tips in Hawaii
For unpaid wages or an improperly claimed tip credit, you can file a claim with the Hawaii Department of Labor and Industrial Relations, Wage Standards Division. You may also file a complaint with the U.S. Department of Labor Wage and Hour Division.
One rule never bends: managers, supervisors, and owners may not keep any part of your tips.
Tip pooling in Hawaii
Hawaii follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $14.75/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it.
What this means for your tip-out
Because part of your legal wage in Hawaii comes from tips, the employer's tip credit assumes those tips reached you. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Hawaii tip law FAQs
What is the tipped minimum wage in Hawaii?
Employers in Hawaii may pay tipped employees a cash wage of $14.75/hr and claim a tip credit of up to $1.25/hr toward the $16.00 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in Hawaii?
Hawaii follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $14.75/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in Hawaii?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Hawaii. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
When can my Hawaii employer legally pay the $14.75 tipped cash wage?
Only when your cash wage plus tips comes to at least $7.00 an hour above the minimum wage — so at least $23.00 an hour at the 2026 minimum of $16.00. If you do not clear that threshold, the tip credit is not allowed and you are owed the full $16.00 in cash.
Is Hawaii’s minimum wage going to rise again?
Yes. Under Act 114 of 2022, Hawaii’s minimum wage is scheduled to increase to $18.00 an hour on January 1, 2028. The $7.00 tip-credit condition is tied to whatever the minimum wage is at the time.