HB731 (2020) Detail

(New Title) establishing a state minimum wage and providing for adjustments to the minimum wage.


HB 731-FN - AS AMENDED BY THE HOUSE

 

9Jan2020... 2767h

9Jan2020... 2897h

9Jan2020... 0024h

2019 SESSION

19-0761

04/06

 

HOUSE BILL 731-FN

 

AN ACT establishing a state minimum wage and providing for adjustments to the minimum wage.

 

SPONSORS: Rep. Schultz, Merr. 18; Rep. King, Hills. 33; Rep. Read, Rock. 17; Rep. Conley, Straf. 13; Rep. T. Smith, Hills. 17; Rep. Josephson, Graf. 11; Rep. Ellison, Merr. 27; Rep. Bunker, Rock. 18; Rep. Frost, Straf. 16

 

COMMITTEE: Labor, Industrial and Rehabilitative Services

 

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AMENDED ANALYSIS

 

This bill increases the minimum hourly rate over the next 5 years; increases the base rate for tipped employees; and adjusts the rate annually based on the consumer price index.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

9Jan2020... 2767h

9Jan2020... 2897h

9Jan2020... 0024h 19-0761

04/06

 

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 Wage Law; Minimum Hourly Rate.  Amend the introductory paragraph in RSA 279:21 to read as follows:

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 at an hourly rate as follows, whichever is higher:  

$8.50 per hour effective through December 31, 2020.

$10.60 per hour effective January 1, 2021.

$11.70 per hour effective January 1, 2022.

$12.80 per hour effective January 1, 2023.

$13.90 per hour effective January 1, 2024, and

$15 per hour effective January 1, 2025 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.  

Beginning January 1, 2026, and each January 1 thereafter, the minimum hourly rate for employees and the base rate for tipped employees shall be adjusted according to the increase in the cost of living according to the Northeast consumer price index as determined by the Bureau of Labor Statistics, United States Department of Labor.  The adjustment to the minimum hourly rate for employees and the base rate for tipped employees shall not decrease either rate.  The limitations imposed hereby shall be subject to the following exceptions:

2  Applicability.  The $8.50 hourly rate specified in section 1 of this act shall be applicable and enforceable beginning 60 days after the effective date of this act.

3  Effective Date.  This act shall take effect upon its passage.

 

LBAO

19-0761

Amended 3/4/20

 

HB 731-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2020-0024h)

 

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 Increase

Indeterminable Increase

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Various Governmental Funds

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

METHODOLOGY:

This bill increases the minimum hourly rate over the next 5 years; increases the base rate for tipped employees; and adjusts the rate annually based on the consumer price index.

 

The Department of Administrative Services indicates there would be no fiscal impact to the State until January 1, 2022 because the lowest hourly rate in the State wage schedule is currently $10.73 at labor grade 1, step 1.  The State wage schedule is structured, so the labor grades and steps are built off of one another.  The Department assumes impact of the hourly rate change on January 1, 2022 would impact all of the salary grades and steps.  For example, if the rate of pay for a labor grade 1, step 11 is $11.70 beginning on January 1, 2022, then the subsequent steps and salary grades would also need to increase.  This ripple effect would begin at labor grade 1 step 1 and end at labor grade 35 and the entire wage schedule would need to be modified.  The Department assumes this would need to occur each year until the last adjustment is made on January 1, 2025.  There are approximately 2,100 classified State positions with a starting hourly rate under $15.00.  Some of the individuals in these positions may earn the minimum wage from 2022 through 2025 due to step increases or other raises while others may not.  Because the Department cannot predict the rate of pay for employees from 2022-2025 or  what the annual cost of livings increase may be, the impact on state expenditures is indeterminable.  In addition, the Department cannot predict if federal minimum wage will change and, if so, by how much.

 

The New Hampshire Association of Counties indicates it is not possible to predict what wages will be for the next 5 years, but assumes the bill is likely to increase county expenditures.  The Association states the impact would be different for each county.  There would be no impact on county revenues.

 

The New Hampshire Municipal Association indicates the bill could cause and increase in municipal expenditures for any municipal employee being paid less than the proposed minimum wage rates.   The Association does not have information on how many employees would be affected or what the amounts of increase would be.  There would be no impact on municipal revenues.

 

It is assumed the fiscal impact of the bill would not occur until FY2021.

 

AGENCIES CONTACTED:

Department of Administrative Services, New Hampshire Association of Counties and New Hampshire Municipal Association

 

Links

HB731 at GenCourtMobile
HB731 Discussion

Action Dates

Date Body Type
Feb. 20, 2019 House Hearing
March 6, 2019 House Exec Session
Nov. 6, 2019 House Exec Session
House Floor Vote

Bill Text Revisions

HB731 Revision: 7918 Date: March 9, 2020, 1:59 p.m.
HB731 Revision: 7395 Date: Jan. 18, 2019, 3:14 p.m.

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Labor, Industrial and Rehabilitative Services HJ 3 P. 28
Feb. 20, 2019 Public Hearing: 02/20/2019 01:10 pm LOB 305-307
Feb. 26, 2019 Subcommittee Work Session: 02/26/2019 01:30 pm LOB 306-308
March 6, 2019 Executive Session: 03/06/2019 10:00 am LOB 307
Retained in Committee
Oct. 15, 2019 Subcommittee Work Session: 10/15/2019 10:00 am LOB 307
Nov. 6, 2019 Executive Session: 11/06/2019 10:00 am LOB 307
Majority Committee Report: Ought to Pass with Amendment # 2019-2767h (NT) (Vote 11-6; RC) HC 50 P. 26
Minority Committee Report: Inexpedient to Legislate
Jan. 9, 2020 Amendment # 2019-2767h (NT): AA VV 01/09/2020 HJ 2 P. 2
Jan. 9, 2020 FLAM # 2019-2897h (Rep. Kanzler): AA RC 189-170 01/09/2020 HJ 2 P. 2
Jan. 9, 2020 FLAM # 2020-0024h (Rep. Schultz): AA RC 189-177 01/09/2020 HJ 2 P. 2
Jan. 9, 2020 Ought to Pass with Amendment 2019-2767h (NT)/2019-2897h/2020-0024h: MA RC 212-155 01/09/2020 HJ 2 P. 2
Jan. 8, 2020 Ought to Pass with Amendment 2019-2767h (NT)/2019-2897h/2020-0024h: MA RC 212-155 01/08/2020
March 11, 2020 Introduced 03/11/2020 and Referred to Commerce; SJ 7