Revision: April 1, 2019, 12:03 p.m.
HB 186 - AS AMENDED BY THE HOUSE
14Mar2019... 0723h
2019 SESSION
19-0151
04/01
HOUSE BILL 186
AN ACT establishing a state minimum wage and providing for adjustments to the minimum wage.
SPONSORS: Rep. Moffett, Merr. 9; Rep. M. Smith, Straf. 6; Rep. Tanner, Sull. 9; Rep. D. Ley, Ches. 9; Rep. Wazir, Merr. 17; Rep. Spang, Straf. 6; Sen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21
COMMITTEE: Labor, Industrial and Rehabilitative Services
─────────────────────────────────────────────────────────────────
AMENDED ANALYSIS
This bill establishes a minimum hourly rate which increases over the next 3 years, requires tipped employees to receive 50 percent of the applicable minimum hourly rate, and establishes a youth minimum wage for employees under 17 years of age.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
14Mar2019... 0723h 19-0151
04/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
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 17 years of age or older at an hourly rate lower than that set forth in the federal minimum wage law, as amended, or the following minimum hourly rate, whichever is higher:
$9.50 per hour effective January 1, 2020.
$10.75 per hour effective January 1, 2021.
$12.00 per hour effective January 1, 2022, and thereafter.
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] 50 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 New Paragraph; Minimum Hourly Rate; Youth Minimum Wage. Amend RSA 279:21 by inserting after paragraph VIII the following new paragraph:
IX. The minimum hourly rate for a person under 17 years of age shall be one dollar per hour less than the minimum hourly rate applicable under this section.
3 Effective Date. This act shall take effect January 1, 2020.
19-0151
Amended 3/29/19
HB 186- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2019-0723h)
AN ACT establishing a state minimum wage and providing for adjustments to the minimum wage.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
|
| |||
| Estimated Increase / (Decrease) | |||
STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | $0 | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Various Government Funds | |||
|
|
|
|
|
COUNTY: |
|
|
|
|
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
|
|
|
|
|
LOCAL: |
|
|
|
|
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
This bill establishes a minimum hourly rate which increases over the next 3 years, requires tipped employees to receive 50 percent of the applicable minimum hourly rate, and establishes a youth minimum wage for employees under 17 years of age. The Department of Administrative Services indicated, as of January 4, 2019 there were 347 employees in full and part-time position who are paid less than $12.00 hour. The hourly rates for these employees range from $10.90 to $11.83 as shown below:
Pay Rate | Full-time Employees | Part-time Employees |
$10.90 / hour | 0 | 63 |
$11.19 / hour | 123 | 132 |
$11.48 / hour | 3 | 2 |
$11.79 / hour | 11 | 8 |
$11.83/ hour | 2 | 3 |
Based on the current rates of pay for these employees, the Department assumes there would be no fiscal impact until January 1, 2022, when the minimum wage is increased to $12.00 per hour. In January 2022, there would be fewer employees paid less than the $12.00 minimum due to salary step increases and any pay increases negotiated for state employees through collective bargaining.
The New Hampshire Municipal Association indicates this bill would increase municipal expenditures for any municipal employee paid less than the newer minimums as they take effect. The Association does not have sufficient information to determine how many employees would be affected or what the amounts of increase would be. The Association indicates there would be no impact on municipal revenues.
The New Hampshire Association of Counties assumes the bill would increase county expenditures. The Association states any impact is indeterminable as the number of minimum wage employees fluctuates.
AGENCIES CONTACTED:
Department of Administrative Services, New Hampshire Association of Counties, and New Hampshire Municipal Association