Hawaii Governor David Ige signed House Bill 2510 that will see the state’s first minimum wage increase since 2018. Governor Ige cited poverty concerns and the economic effects of the COVID-19 pandemic on the Aloha State as his reasoning. With this bill signed, Hawaii has become the first state to enact an $18.00 minimum wage, though it will be implemented gradually over the next six years, starting with an increase from $10.10 to $12.00 per hour on October 1, 2022. There are other changes included in the bill, including making the state earned income tax credit refundable and permanent, providing for carryforward of nonrefundable credits previously claimed, and incrementally increasing the tip credit beginning on 10/1/2022.
Hawaii’s New Minimum Wage Law Goes into Effect October 1, 2022
The minimum wage will increase from its current $10.19 per hour as follows:
- $12.00 per hour on October 1, 2022
- $14.00 per hour on January 1, 2024
- $16.00 per hour on January 1, 2026
- $18.00 per hour on January 1, 2028
The tip credit an employer may take* for traditionally tipped employees will increase from its current 75 cents per hour as follows:
- $1.00 per hour on October 1, 2022
- $1.25 per hour on January 1, 2024
- $1.50 per hour on January 1, 2028
*In Hawaii, employers may only take the tip credit if the combined amount the employee receives from the employer and in tips is at least $7.00 more than the applicable minimum wage.
How PEOs help employers ensure compliance with wage and hour laws
Wage and hour laws exist on the federal and state and sometimes city level in order to protect workers against certain unfair pay practices. The Fair Labor Standards Act (FLSA) is a federal law that establishes rules for the following:
- Minimum wage
- Overtime pay eligibility
- Recordkeeping requirements
- Child labor standards
The law passed in 1938 and has seen many changes over the years, requiring employers to adjust each time a change is implemented. Even without worrying about changes, FLSA is a complicated law for employers to understand because it lays out employer rules for such a wide range of employee regulations.
Professional Employer Organizations (PEOs) partner with small to medium-sized businesses to help with all their HR needs, including ensuring compliance with all wage and hour laws. PEOs have an experienced team of HR and payroll experts to help employers pay their staff correctly and on time and help them follow overtime, recordkeeping, and other wage laws; preventing costly mistakes and fines.
PEO partners can depend on reliable guidance on wage and hour requirements and other HR needs such as hiring and employee relations, making it easier to make informed decisions and to avoid expensive HR mistakes.
Services provided by Makai HR
Makai HR provides convenient and efficient payroll services to its partners, including:
- Clock-in & Clock-out
- Mobile App
- PTO Request Management
- Advanced Scheduling
- Job Costing
- GPS Location Validation
- Timesheet Entry
- Break Tracking
- Tax Withholding, Submission, & Reporting
- W-2 Processing & Delivery
- Integrated Time & Labor Solutions
- Variety of Available Timeclocks
- Convenient Pay Options including Direct Deposit, VISA Paycards, and Paper Checks
Increase operational efficiencies, streamline FLSA and ACA compliance and save on costs with our integrated and included time & labor solutions.
A variety of clocking options to fit your company’s timekeeping needs:
- Mobile Clock App
- Web Clock
- Hardware Time Clocks
- Pin Entry
- Badge Cards
- Bar Code
Makai HR also takes care of withholdings, wage garnishments, unemployment insurance, and federal and state payroll taxes to ensure their clients maintain compliance with tax filing regulations and avoid costly errors.
Makai HR offers a truly paperless HR experience with its online human resource information system (HRIS). Benefits include:
- Online, Paperless Onboarding
- Employee and Manager Self-service Platform
- Direct Deposit Set-up
- Time and Attendance Tracking with Integration to Payroll
- PTO Tracking Requests
- Local HR Software Support
- Online Training
- Applicant Tracking
- Background Screening
- HR Reports (Census, Payroll, Deductions, Benefits, etc.)
- Cloud-based Security and Access
Not excited about employer laws? That’s okay; we’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long and changes happen). When choosing a PEO to partner with, there are many things to consider including cost, services, and technology solutions.
With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet, or phone. We can truly improve your employees’ work benefits while freeing you up to run your business.
What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!