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Minimum wage increase in Hawai'i has been approved by the House

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Yesterday, the House of Representatives in Honolulu approved a bill, House Bill 2580, to increase the Hawai'i minimum wage to $10.10 in annual increments over the next four years. This potential minimum wage increase is in response to the new minimum wage for federal contract workers under the executive order signed by President Obama in February 2014.

For small businesses in Hawai'i, this increase in minimum wage, even though it is a progression from year to year over the next four years, could be drastic. With increased wages and often an increased lease rates, the purchase price for consumers could be increased as well. Hawai'i already has a high cost of living rate, this increased minimum wage could potentially make it higher.

The idea is that when the wages are increased, then the spending increases. In the end, the hope is that consumers will make more; therefore, they will spend more. In a way, it makes perfect sense that the minimum wage be increased. However, how does this affect the bottom line for small businesses?

The bill passes over to the Senate today. Call or email your senator today if you want your thoughts and ideas about this bill addressed; after all, he/she works for you, right?



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