Revision: Jan. 8, 2020, 4:37 p.m.
SB 410-FN - AS INTRODUCED
2020 SESSION
20-3065
04/06
SENATE BILL 410-FN
AN ACT relative to the state minimum hourly rate.
SPONSORS: Sen. Soucy, Dist 18; Sen. Cavanaugh, Dist 16; Sen. D'Allesandro, Dist 20; Sen. Fuller Clark, Dist 21; Sen. Rosenwald, Dist 13; Sen. Levesque, Dist 12; Sen. Hennessey, Dist 5; Sen. Kahn, Dist 10
COMMITTEE: Commerce
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ANALYSIS
This bill sets the minimum hourly rate paid to employees. The bill also amends the minimum hourly rate for tipped employees.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20-3065
04/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty
AN ACT relative to the state minimum hourly rate.
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 that set forth in the federal minimum wage law, as amended or the following, whichever is higher:
From January 1, 2021 to December 31, 2022, $10 per hour.
From January 1, 2023 and thereafter, $12 per hour.
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] $4 per hour. 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] $12 per hour for all hours worked, the employer shall pay the employee the difference to guarantee the [applicable minimum wage] $12 hourly rate.
Tipped employees who are licensed as secondary game operators pursuant to RSA 287-D and 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 $7.25 per hour. If such 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 $12 per hour for all hours worked, the employer shall pay the employee the difference to guarantee the $12 hourly rate.
The limitations imposed hereby shall be subject to the following exceptions:
2 Effective Date. This act shall take effect upon its passage.
20-3065
1/8/20
SB 410-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the state minimum hourly rate.
FISCAL IMPACT: [ X ] State [ ] 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 | $0 | Indeterminable Increase |
Funding Source: | [ X ] General [ ] Education [ X ] Highway [ X ] Other - Various Government Funds | |||
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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 sets the minimum hourly rate paid to employees. The bill also amends the minimum hourly rate for tipped employees. The Department of Administrative Services indicates the lowest labor grade for state employees is labor grade 1 which is paid $10.90 per hour. New hires in these job classifications typically start at labor grade 2 or 3. A labor grade 2 position currently starts at $11.19 or $1.19 higher than the minimum wage proposed by the bill beginning on January 1, 2021, but less than the proposed $12 per hour minimum rate effective January 1, 2023. The Department assumes, because the typical starting wage rate is already close to $12 per hour, without considering step increases or cost of living adjustments, any impact on state expenditures if any would be minimal. Any future increase the federal wage rate beyond $12.00 per hour may impact State expenditures, but any potential impact is indeterminable at this time.
The New Hampshire Municipal Association assumes this bill would increase municipal payroll expenditures by an indeterminable amount. The Association does not have information to determine the number of employees that would be affected by the bill. There will be no impact on municipal revenues.
The New Hampshire Association of Counties does not anticipate an impact on county expenditures or revenues.
AGENCIES CONTACTED:
Department of Administrative Services, New Hampshire Municipal Association and New Hampshire Association of Counties