Revision: March 9, 2020, 1:59 p.m.
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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.
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
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| 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 | |||
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COUNTY: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
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LOCAL: |
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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