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Governor signs bill to increase minimum wage

By Star-Advertiser staff

POSTED:
LAST UPDATED: 01:33 p.m. HST, May 23, 2014



Gov. Neil Abercrombie on Friday signed a bill into law that will increase the state's minimum wage to $10.10 an hour by January 2018.

The law will also expand a tip credit to 75 cents, but businesses will not be able to deduct the credit unless workers earn at least $7 more than the minimum wage, up from 50 cents.

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

Businesses had warned that a minimum wage increase could lead to reduced hours and benefits for workers.

But the governor said he has heard the same complaints from business interests since the 1960s. He called the minimum wage a "survival wage," and predicted that the hike would help boost the economy because workers would spend the higher pay locally.

Abercrombie was joined at the signing ceremony at the state Capitol auditorium by state Sen. Clayton Hee and state Rep. Mark Nakashima, the main negotiators on the minimum wage bill.






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livinginhawaii wrote:
Approximately one year after the 2007 increase my company reduced staffing by outsourcing labor to a mainland location and increased the workload of salaried employees. In 2010 the company shot down Hawaii operations. Clearly Abercrombie is not an economist. I dare say this will have a greater negative impact than what happened in 2007. If you are a student looking for summer work, forget it. I do not predict a boost in the economy....
on May 23,2014 | 11:37AM
Ronin006 wrote:
You are correct, Instead of boosting the economy, the minimum wage increase will increase the cost of everything we purchase locally and the purchasing power of those now earning $7.25 an hour will be no different than when they earn $10.;10 an hour.
on May 23,2014 | 06:32PM
noheawilli wrote:
Its really pretty simple, if you want to get paid more than minimum wage, learn a skill or get an education that makes employers want to pay you more. I would not rely on the artificial floor created by an ever intrusive state.
on May 23,2014 | 12:18PM
bumba wrote:
Pure BS on your part.
on May 23,2014 | 12:55PM
noheawilli wrote:
Wow you told me, now go look at the facts on economic mobility for the educated vs people with only a HS degree. Like I said, its really pretty simple.
on May 23,2014 | 01:40PM
bumba wrote:
Like I said. Pure BS. More concerned about what other people are getting.
on May 23,2014 | 03:37PM
droid wrote:
Clearly, you have no clue how economics works, bumba. Hawai‘i only has lower unemployment than the mainland BECAUSE its minimum wage was $7.25. Now, without that advantage, employers will start letting people go. Good job, Neil!
on May 23,2014 | 05:59PM
kekelaward wrote:
Expect the unions to demand raises also. How many government jobs pay less then $10.10 an hour right now? If you thought our economy sucked, it's now going to get worse.
on May 23,2014 | 12:24PM
false wrote:
there you go I guess that ruins the education theory state above. LOL
on May 23,2014 | 03:16PM
KB wrote:
another, angle the state gets more in payroll taxes .
on May 23,2014 | 12:29PM
2NDC wrote:
Way to tank the economy Aberscumbee. Businesses will simply raise the price of goods and services and cut jobs to reduce costs. Amazing what some lawmakers would do in an election year just to appear to be helping a specific group of people in an attempt to gain political support. :-(
on May 23,2014 | 01:55PM
false wrote:
You can thank him by voting for IGE.
on May 23,2014 | 03:17PM
ISCREAM wrote:
I will vote for Aiona...thank you.
on May 23,2014 | 03:37PM
ISCREAM wrote:
Time to close up shop...let my ten employees go...
on May 23,2014 | 03:35PM
ISCREAM wrote:
The only one that makes out is government collecting more of our money to spend... Seniors and those on fixed income suffer the most.
on May 23,2014 | 03:37PM
Ronin006 wrote:
I am surprised the Governor did not say he signed the bill raising Hawaii's minimum wage to $10.10 an hour because it is what Obama wants.
on May 23,2014 | 06:34PM
Ezdeewilly wrote:
Higher unemployment and inflation is good for the economy?
on May 24,2014 | 12:02AM
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