The Hawaii Department of Labor and Industrial Relations is reminding residents that the state’s minimum wage will increase to $14 per hour beginning Monday. The current wage is $12 per hour.

The increase is required under a 2022 law that incrementally increases the wage to $16 per hour on Jan. 1, 2026, and to $18 per hour on Jan. 1, 2028.

The tip credit will also increase on Jan. 1, says DLIR. Tipped employees may be paid $1.25 below the minimum wage beginning next week and $1.50 below the minimum wage beginning in 2028.

Employers may then apply the tip credit “provided the combined amount the employee receives from the employer and in tips, is at least $7 more than the minimum wage,” according to a press release.

Jade Butay, the DLIR director, said in a statement, “The minimum wage rate is a floor designed to protect workers against unduly low pay.”

The states with the current highest minimum wages are Washington ($15.74), Massachusetts ($15) and New York ($14.20).

Alabama, Louisiana, Mississippi, South Carolina and Tennessee do not require a minimum wage.

For more information on Hawaii’s minimum wage and tip credit, click here.