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State lawmakers agree to boost minimum wage

By Star-Advertiser staff

LAST UPDATED: 05:45 p.m. HST, Apr 25, 2014

State House and Senate negotiators reached an agreement Friday to increase the state's minimum wage to $10.10 an hour by January 2018. The tip credit would expand to 75 cents.

Businesses could deduct the tip credit on workers who earn at least $7 more than the minimum wage, up from 50 cents.

Rep. Mark Nakashima, the lead House negotiator on the bill, offered the new draft. Sen. Clayton Hee, the lead Senate negotiator, said he would recommend the draft to senators.

Hee, who had held out for a higher minimum wage, described the draft as a victory for the working poor.

Gov. Neil Abercrombie commended lawmakers for moving the bill forward to a final vote next week. "It is imperative to provide our lowest paid workers with the economic stability and security they deserve," he said in a news release. 

The state's $7.25 an hour minimum wage has not been increased since 2007. The tip credit is 25 cents.

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localguy wrote:
It is about time to raise the minimum wage. Gradual increase should not be too big a charge for the employers.
on April 25,2014 | 06:42PM
ISCREAM wrote:
Easy for you to say...$10.10 an hour is really about $13 an hour after an employer pays all the BS....This is really just a tax grab...most low wage employers are in the retail or restaurant business...they will have to raise prices to cover the increase in cost without an increase in production...so low wage workers (and everyone else) will have to pay higher prices...I can see $6 gas in the near future....$6 milk...higher prices for all essentials...all the while giving lawmakers more GET revenue to spend on their pet projects...
on April 25,2014 | 09:53PM
roadsterred wrote:
Such a bold move on the part of our Legislators. Where did they find the intestinal fortitude to support such bill? $10.10 an hour by 2018? Why not $15.00 an hour in 2014? Pandering to the lowest common denominator during an election year.
on April 25,2014 | 07:22PM
fbiguy wrote:
Google "Price Elasticity of Demand" and you will have your first lesson in basic economics, and will learn what the legislature obviously does, that the working poor will be out of jobs if the minimum wage is raised too dramatically.
on April 25,2014 | 08:42PM
Maipono wrote:
fbiguy, mahalo for pointing out that if the Guv and the Legislature wants to make the working poor suffer continue raising the minimum wage. Because the demand for the low wage worker is elastic, employers will cut back on employing them as the wage (price) for their labor increases. I wish the Democrats remembered what they were taught in their econ class before they increase the misery of the low wage worker.
on April 25,2014 | 10:23PM
CEI wrote:
Yes senator Hee, it is a wonderful victory for the so-called "working poor". You and your fellow pandering politicians have been truly fearless in tackling poverty in this manner. But you did not address the lazy poor or the non-working poor. They are people too and also deserve economic stability and security like the governor says. So if the working poor get $10.10/hour then the lazy poor should get $6.72.hour and the non-working poor should get $3.36/hour by my calculations. This would incentivise the the two lower groups to put in that extra effort to get into the working poor category. Just can't let any of them ever move out of the "poor" category as this risks drying up the dependency class the democrats rely on each election cycle.
on April 25,2014 | 08:57PM
ISCREAM wrote:
Less than 1/2 of 1% of hourly wage employees that are head of household are paid minimum wage...that equates to less than 500 in the entire state of Hawaii...
on April 25,2014 | 09:55PM
8087823674 wrote:
God bless Senator Hee!
on April 25,2014 | 09:31PM
ISCREAM wrote:
Senator Hee...who has never signed a payroll check in his life...actually never had a job that was not feeding from the public trough....
on April 25,2014 | 09:56PM
usahwn wrote:
It does not come out his pocket. Try add workers comp medical insurance and other insurance and see if you can afford to be an employer in Hawaii. I really do not like this guy as an employer that pays beyond much beyond minimum. I am not fond of people who make a living out of lip service .
on April 25,2014 | 10:19PM
motokimo wrote:
To offset the raises for the employers, the state should give tax credits to them so everyone wins.
on April 25,2014 | 09:38PM
Thegame wrote:
So I guess milk will be $10 a gallon too.
on April 25,2014 | 10:11PM
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