SB554 (2018) Detail

Relative to the minimum hourly rate and employer-sponsored health benefits.


SB 554-FN - AS INTRODUCED

 

 

2018 SESSION

18-2954

04/06

 

SENATE BILL 554-FN

 

AN ACT relative to the minimum hourly rate and employer-sponsored health benefits.

 

SPONSORS: Sen. Soucy, Dist 18; Sen. Woodburn, Dist 1; Sen. Watters, Dist 4; Sen. Fuller Clark, Dist 21; Sen. D'Allesandro, Dist 20; Sen. Hennessey, Dist 5; Sen. Feltes, Dist 15; Sen. Cavanaugh, Dist 16; Sen. Lasky, Dist 13; Rep. Cilley, Straf. 4; Rep. Cushing, Rock. 21

 

COMMITTEE: Commerce

 

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ANALYSIS

 

This bill sets the minimum hourly rate paid to employees based on whether or not the employer offers health benefits to the employee through an employer-sponsored plan.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2954

04/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to the minimum hourly rate and employer-sponsored health benefits.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Minimum Hourly Rate.  Amend the introductory paragraph in 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 that set forth in the federal minimum wage law, as amended or the following, whichever is higher:

On and after July 1, 2018, $7.50 per hour if the employer offers health care benefits to the employee through an employer-sponsored plan, and $9.00 per hour if the employer does not offer health care benefits to the employee through an employer-sponsored plan;

On and after July 1, 2019, $9.00 per hour if the employer offers health care benefits to the employee through an employer-sponsored plan, and $11.00 per hour if the employer does not offer health care benefits to the employee through an employer-sponsored plan;

On and after July 1, 2020, $10.50 per hour if the employer offers health care benefits to the employee through an employer-sponsored plan, and $13.00 per hour if the employer does not offer health care benefits to the employee through an employer-sponsored plan; and

On and after July 1, 2021, $12.00 per hour if the employer offers health care benefits to the employee through an employer-sponsored plan, and $15.00 per hour if the employer does not offer health care benefits to the employee through an employer-sponsored plan.

"Employer-sponsored plan" means health benefits offered by the employer to the employee and his or her dependents at a total cost to the employee for premiums not to exceed 10 percent of the employee's annual gross taxable income from the employer.  

An employer shall provide written notification of the minimum hourly rate adjustment to each of its employees and shall make the necessary payroll adjustments no later than July 1 of each year.  Tips or gratuities received by employees shall not be credited as any part of or offset against the minimum hourly rate.  

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 percent of the applicable minimum [wage] hourly rate.  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] hourly rate for all hours worked, the employer shall pay the employee the difference to guarantee the applicable minimum [wage] hourly rate.  The limitations imposed hereby shall be subject to the following exceptions:

2  Effective Date.  This act shall take effect July 1, 2018.

 

LBAO

18-2954

12/29/17

 

SB 554-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the minimum hourly rate and employer-sponsored health benefits.

 

FISCAL IMPACT:      [ X ] State              [ X ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   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 ] Other - Various Government Funds

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

METHODOLOGY:

This bill would increase the minimum hourly rate paid to employees based on whether or not the employer offers health benefits to the employee through an employer sponsored plan.  

 

The Department of Administrative Services analyzed the fiscal impact of this bill by comparing each of the required minimum hourly rates to actual payroll information.  The Department indicates the full-time employees work 37-1/2 to 40 hours per week based on job classification and part-time employees, on average, work 20 hours per week.  In addition, the analysis assumed employer sponsored health care is offered to full-time and not part-time employees.  No negotiated cost of living pay increase was assumed.  Any negotiated cost of living increase would lessen the fiscal impact.

  • The July 1, 2018 increase to $7.50 per hour if the employers offers health care benefits and $9.00 per hour if the employer does not offer health care benefits would have no impact on State payroll costs since the lowest rate paid to full and part-time State employees is $10.57 per hour.
  • The July 1, 2019 increase to $9.00 per hour if the employers offers health care benefits and $11.00 per hour if the employer does not offer health care benefits would have no impact on full-time employees receiving employer sponsored health care because $9.00 is less than the lowest hourly rate of $10.57.  There would be an additional cost of $59,739 for part-time pay and benefits as 138 part-time State employees would be paid less than the $11.00 for some or all of the fiscal year.
  • The July 1, 2020 increase to $10.50 per hour if the employers offers health care benefits and $13.00 per hour if the employer does not offer health care benefits would have no impact on the full-time employees receiving employer sponsored health care because $10.50 is less than the lowest hourly rate of $10.57.  There would be an additional cost of $1,613,991 for part-time pay and benefits as 1,550 part-time State employees would be paid less than the $13.00 minimum for some or all of the fiscal year.
  • The July 1, 2021 increase to $12.00 if the employers offers health care benefits and $15.00 if the employer does not offer health care benefits would increase expenditures by $2,990 as six full-time State employees would be paid less than the $12.00 minimum hourly rate for some or all of the year.  There would be an additional cost of $5,594,178 for part-time pay and benefits as 1,945 part-time State employees would be paid less than the $15.00 minimum for some or all of the fiscal year.

 

The Department indicates the statewide payroll is funded by all major government funds, various other funds and federal revenue.  For positions funded by other funds and federal revenue, an increase in salary and benefit expenditures may also increase restricted revenues.

 

The Department of Health and Human Services assumes increases in wages for low-income individuals may effect eligibility for cash assistance administered by the Department.  The number of individuals that may fall within the scope of this legislation is unknown.  In addition,  the potential for employer sponsored health insurance to offset expenditures for the Medicaid program is also unknown.

 

The New Hampshire Municipal Association states this bill would cause an increase in wages, and thus increase municipal expenditures for any municipal employee being paid less than the new minimums when they take effect.  The Association does not have sufficient information to determine how many employees would be affected or what the amount of increase would be.  The Association indicates there would be no impact on local revenues.

 

The New Hampshire Association of Counties determined this bill could increase county expenditures by an indeterminable amount.  Any increase would vary by county.  There would be no impact on county revenues.

 

AGENCIES CONTACTED:

Departments of Administrative Services and Health and Human Services, New Hampshire Municipal Association and New Hampshire Association of Counties

 

Links

SB554 at GenCourtMobile

Action Dates

Date Body Type
Jan. 23, 2018 Senate Hearing
Feb. 15, 2018 Senate Floor Vote

Bill Text Revisions

SB554 Revision: 2907 Date: Jan. 9, 2018, 9:33 a.m.

Docket


Feb. 15, 2018: Inexpedient to Legislate, RC 14Y-10N, MA === BILL KILLED ===; 02/15/2018; SJ 4


Feb. 15, 2018: Committee Report: Inexpedient to Legislate, 02/15/2018; SC 7


Jan. 23, 2018: Hearing: 01/23/2018, Room 100, SH, 01:30 pm; SC 4


Jan. 3, 2018: Introduced 01/03/2018 and Referred to Commerce; SJ 2


Jan. 18, 2018: Introduced 01/18/2018 and Referred to Commerce; SJ 2