The Hawaii State Legislature is set to adjourn on May 5, marking a mixed outcome for small-business owners in the state. Melissa Pavlicek, Hawaii state director for the National Federation of Independent Business (NFIB), expressed both relief and disappointment over the legislative session’s results.
“Five hundred is a good batting average in baseball, but we would have loved to see it higher in politics,” Pavlicek remarked. Despite this sentiment, she acknowledged two positive outcomes from the session that could benefit struggling small businesses.
House Bill 1600 was highlighted as a significant measure. It aims to support the solvency of Hawaii’s unemployment insurance trust fund, which is funded by employer taxes. “Without some financial assistance from the state, small-business owners, especially, were staring down the barrel of whopping UI tax increases,” Pavlicek explained.
Another favorable development for small businesses was the shelving of House Bill 2399. This bill would have imposed fees on producers of fast-moving consumer goods, likely increasing costs for consumers. Pavlicek noted that many small businesses are still suffering economically and emphasized that government should avoid further burdening them.
However, not all legislative actions were welcomed by NFIB Hawaii. House Bill 2510 will raise the state’s minimum wage rate incrementally until it reaches $18 per hour by 2028—a 78 percent increase. Pavlicek commented that while employers are already addressing wage increases due to market demands, most other states chose not to raise minimum wages amid economic uncertainty.
Additionally, Senate Bill 3289 proposes establishing a Hawaii Retirement Savings Program, introducing new compliance requirements for employers if enacted. “Affordable retirement savings programs are readily available,” said Pavlicek. She warned that SB 3289 adds another regulatory challenge for small-business owners lacking extensive accounting and human resources support.
The NFIB has been advocating for America’s small and independent business owners since its founding in 1943 and continues its efforts across all states including Hawaii.
