Hawaii Senate Bill SB1287

Hawaii 2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/27/25
• Report Pass: 2/12/25
• Refer: 2/12/25
• Report Pass: 2/28/25
• Engrossed: 3/4/25
• Refer: 3/6/25

Caption

RELATING TO TRANSPARENCY.

Summary

SB1287 would require food, beverage, and service establishments that accept tips to post clear, readable notices explaining how tips are allocated. The required notice must identify which employee positions receive tips and the percentages or proportions assigned to each position, and it must be posted where customers pay or otherwise in a visible location. A second notice must repeat the allocation information and provide contact information for the U.S. Department of Labor Wage and Hour Division and the Hawaii Department of Labor and Industrial Relations Wage Standards Division so workers and customers can report suspected violations. The bill is aimed at preventing tip theft and improving transparency for tipped workers and customers. The legislature cites prior investigations in Hawaii in which employers were found to have illegally retained tips, resulting in back wages and damages, and states that undisclosed tip pooling makes violations harder to detect. The measure also creates enforcement consequences: employers who fail to post the required notice may be liable for back wages and penalties, and employees may bring actions in court to recover unpaid wages and tips, including through representative actions.

Impact

SB1287 would add a new tip-allocation disclosure requirement to chapter 388, Hawaii Revised Statutes, expanding wage-and-hour notice obligations for establishments that accept tips and employ tipped workers. It would also create a specific statutory remedy for noncompliance, including liability for back wages and penalties tied to the amount employees should have received if tips had been directly paid. In practical terms, the bill would affect restaurants, cafes, bars, and other food, beverage, and service businesses that use tip pools or other tip-sharing arrangements, while giving employees and regulators clearer information and an additional enforcement tool.

Sentiment

The bill appears to have generally favorable support in committee, passing both the Senate Labor and Technology Committee and the Senate Commerce and Consumer Protection Committee unanimously with amendments. The framing of the measure is strongly worker-protection oriented, emphasizing wage theft prevention and transparency rather than imposing a new tax or broad regulatory scheme. At the same time, the later recommendation to defer by the Labor committee suggests the measure may have faced unresolved policy or implementation concerns despite earlier support.

Contention

The main point of contention is likely the scope and enforceability of the disclosure and penalty provisions. Employers in tipped industries may view the posting requirements, mandated language, and potential back-wage liability as burdensome, especially for businesses using lawful tip pools or mixed front-of-house/back-of-house allocation systems. Another possible issue is the bill’s broad remedy structure, including employee-initiated court actions and representative claims, which could raise concerns about litigation exposure. The bill’s supporters, by contrast, are focused on protecting workers from hidden tip retention and making violations easier to identify and report.