Revision: Jan. 30, 2017, 3:49 p.m.
HB 115-FN - AS INTRODUCED
2017 SESSION
17-0001
06/01
HOUSE BILL 115-FN
AN ACT establishing a state minimum wage and providing for adjustments to the minimum wage.
SPONSORS: Rep. D. Ley, Ches. 9; Rep. H. Moffett, Merr. 9; Rep. Pearson, Ches. 16; Rep. Cilley, Straf. 4; Rep. Horrigan, Straf. 6; Rep. Berch, Ches. 1
COMMITTEE: Labor, Industrial and Rehabilitative Services
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This bill establishes a state minimum hourly wage and provides for annual readjustment of the minimum wage.
This bill also establishes a training wage for employees under the age of 18 years.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0001
06/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT establishing a state minimum wage and providing for adjustments to the minimum wage.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Minimum Hourly Rate. Amend the introductory paragraph of RSA 279:21 to read as follows:
279:21 Minimum Hourly Rate. Unless otherwise provided by statute, no person[, firm, or corporation] shall employ any employee at an hourly rate lower than $9.50 or that set forth in the federal minimum wage law, as amended, whichever is higher.
Tipped employees of a restaurant, hotel, motel, inn or cabin, or ballroom who customarily and regularly receive more than $30 a month in tips directly from the customers will receive a base rate from the employer of not less than [45] 60 percent of the applicable minimum wage. If an employee shows to the satisfaction of the commissioner that the actual amount of wages received at the end of each pay period did not equal the minimum wage for all hours worked, the employer shall pay the employee the difference to guarantee the applicable minimum wage. The limitations imposed hereby shall be subject to the following exceptions:
2 New Paragraph; Minimum Hourly Rate; Training Wage. Amend RSA 279:21 by inserting after paragraph VIII the following new paragraph:
IX. A training hourly rate which shall be one dollar per hour less than the full minimum wage but no lower than $8.50 may be paid to those newly-hired employees who are 16 or 17 years old for the first 3 months of employment by a specific employer. After 3 calendar months of employment with such employer, or upon reaching the age of 18, such employee shall receive the full minimum wage.
3 Minimum Hourly Rate The introductory paragraph of RSA 279:21 is repealed and reenacted to read as follows:
279:21 Minimum Hourly Rate. Unless otherwise provided by statute, no person shall employ any employee at an hourly rate lower than $12 or that set forth in the federal minimum wage law, as amended, whichever is higher.
Tipped employees of a restaurant, hotel, motel, inn or cabin, or ballroom who customarily and regularly receive more than $30 a month in tips directly from the customers will receive a base rate from the employer of not less than 60 percent of the applicable minimum wage. If an employee shows to the satisfaction of the commissioner that the actual amount of wages received at the end of each pay period did not equal the minimum wage for all hours worked, the employer shall pay the employee the difference to guarantee the applicable minimum wage. The limitations imposed hereby shall be subject to the following exceptions:
4 Minimum Hourly Rate; Annual Adjustment. The introductory paragraph of RSA 279:21 is repealed and reenacted to read as follows:
279:21 Minimum Hourly Rate. Unless otherwise provided by statute, no person shall employ any employee at an hourly rate lower than $12 or that set forth in the federal minimum wage law, as amended, whichever is higher. The minimum hourly rate shall be adjusted on January 1, 2020 and on January 1 of successive years by the increase in the cost of living according to the Northeast Consumer Price Index as determined by the Bureau of Labor Statistics. No decrease in the minimum hourly rate shall be permitted.
Tipped employees of a restaurant, hotel, motel, inn or cabin, or ballroom who customarily and regularly receive more than $30 a month in tips directly from the customers will receive a base rate from the employer of not less than 60 percent of the applicable minimum wage. If an employee shows to the satisfaction of the commissioner that the actual amount of wages received at the end of each pay period did not equal the minimum wage for all hours worked, the employer shall pay the employee the difference to guarantee the applicable minimum wage. The limitations imposed hereby shall be subject to the following exceptions:
I. Section 3 of this act shall take effect January 1, 2019.
II. Section 4 of this act shall take effect January 1, 2020.
III. The remainder of this act shall take effect January 1, 2018.
17-0001
11/22/16
HB 115-FN- FISCAL NOTE
AS INTRODUCED
AN ACT establishing a state minimum wage and providing for adjustments to the minimum wage.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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STATE: | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ X ] General [ ] Education [ X ] Highway [ X ] Multiple Sources | |||
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COUNTY: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Interminable Increase |
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
METHODOLOGY:
This bill as introduced increases the minimum hourly wage from $7.25 an hour to $9.50 per hour on January 1, 2018, to $12.00 per hour on January 1, 2019, and on January 1, 2020 and each year therafter, by the increase in the cost of living according to the Northeast Consumer Price Index as determined by the Bureau of Labor Statistics.
The Department of Administrative Services states this bill will have no impact in FY 2018 because $9.50 is less than the lowest hourly rate paid to state employees. For FY 2019 the Department assumes there are 115 full time and 415 part time employees earning an average wage of $10.57 an hour, which will increase to $12 per hour effective January 1, 2019. For FY 2020 and FY 2021 the Department projects a 1% growth rate per year. Including increased employer contributions to FICA, Medicare and Retirement, the Department projects the following costs per fiscal year across multiple funding sources:
FY 2018 |
FY 2019 |
FY 2020 |
FY2021
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$0 |
$561,782 |
$1,129,182 |
$1,140,474
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The New Hampshire Association of Counties states the impact of the bill can't be determined at this time but there would be increased cost to Social Security and Retirement as well as possible increased wages for the large majority of their workforce currently earning above the minimum wage.
The New Hampshire Municipal Association states without checking with all 234 municipalities, it is impossible to know how many employees would be affected or what the amounts of increases would be. Based on the available information, the impact on municipal expenditures would be minimal. There should be no effect on municipal revenues.
This bill makes changes to the minimum wage law contained in RSA 179 which may result in an increase in penalty actions contained in RSA 179:28. As a result this bill may have an impact on the New Hampshire judicial and correctional systems. There is no method to determine how many charges would be brought as a result of the changes contained in this bill to determine the fiscal impact on expenditures. However, the entities impacted have provided the potential costs associated with these penalties below.
Judicial Branch | FY 2018 | FY 2019 |
Class B Misdemeanor | $49 | $50 |
Class A Misdemeanor | $71 | $72 |
Routine Criminal Felony Case | $451 | $456 |
Appeals | Varies | Varies |
It should be noted average case cost estimates for FY 2018 and FY 2019 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types. An unspecified misdemeanor can be either class A or class B, with the presumption being a class B misdemeanor. | ||
Judicial Council |
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Public Defender Program | Has contract with State to provide services. | Has contract with State to provide services. |
Contract Attorney – Felony | $756/Case | $756/Case |
Contract Attorney – Misdemeanor | $275/Case | $275/Case* |
Assigned Counsel – Felony | $60/Hour up to $4,100 | $60/Hour up to $4,100 |
Assigned Counsel – Misdemeanor | $60/Hour up to $1,400 | $60/Hour up to $1,400 |
It should be noted that a person needs to be found indigent and have the potential of being incarcerated to be eligible for indigent defense services. The majority of indigent cases (approximately 85%) are handled by the public defender program, with the remaining cases going to contract attorneys (14%) or assigned counsel (1%).
* The Council’s budget request for the FY 2018-19 biennium includes an increase to $300 per case for contract attorney misdemeanor cases. | ||
Department of Corrections |
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FY 2016 Average Cost of Incarcerating an Individual | $35,832 | $35,832 |
FY 2016 Average Cost of Supervising an Individual on Parole/Probation | $573 | $573 |
NH Association of Counties |
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County Prosecution Costs | Indeterminable | Indeterminable |
Estimated Average Daily Cost of Incarcerating an Individual | $85 to $110 | $85 to $110 |
Many offenses are prosecuted by local and county prosecutors. When the Department of Justice has prosecutorial responsibility or is involved in an appeal, the Department would likely absorb the cost within its existing budget. If the Department needs to prosecute significantly more cases or handle more appeals, then costs may increase by an indeterminable amount.
AGENCIES CONTACTED:
The Department of Administrative Services, Judicial Branch, New Hampshire Association of Counties and New Hampshire Municipal Association