Revision: Dec. 13, 2023, 8:39 a.m.
SB 308-FN - AS INTRODUCED
2024 SESSION
24-3067
09/05
SENATE BILL 308-FN
AN ACT relative to the state minimum hourly rate.
SPONSORS: Sen. Soucy, Dist 18; Sen. Watters, Dist 4; Sen. Fenton, Dist 10; Sen. Whitley, Dist 15; Sen. D'Allesandro, Dist 20; Sen. Rosenwald, Dist 13; Sen. Altschiller, Dist 24; Sen. Perkins Kwoka, Dist 21; Sen. Chandley, Dist 11; Sen. Prentiss, Dist 5; Rep. Bouchard, Hills. 24; Rep. LeClerc, Hills. 34; Rep. Schultz, Merr. 29; Rep. Staub, Hills. 25
COMMITTEE: Commerce
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ANALYSIS
This bill provides for increases in the minimum hourly rate.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-3067
09/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
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 September 1, 2024 to June 30, 2025, $12 per hour.
From July 1, 2025 and thereafter, $15 per hour.
Tipped employees of a restaurant, cigar bar as defined in RSA 178:20-a, II, 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. 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] $15 per hour for all hours worked, the employer shall pay the employee the difference to guarantee the [applicable minimum wage] $15 per hour rate. The limitations imposed hereby shall be subject to the following exceptions:
2 Minimum Hourly Rate; Contingent Version. The contingent introductory paragraph of RSA 279:21 is repealed and reenacted to read as follows: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 September 1, 2024 to June 30, 2025, $12 per hour.
From July 1, 2025 and thereafter, $15 per hour.
Tipped employees of a restaurant, cigar bar as defined in RSA 178:20-a, II, 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. 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 $15 per hour for all hours worked, the employer shall pay the employee the difference to guarantee the $15 per hour rate. The limitations imposed hereby shall be subject to the following exceptions:
3 Contingency. Section 2 of this act shall take effect on the date the federal minimum wage is increased to $15 per hour, or the minimum wage in the state of New Hampshire is increased to $15 per hour, whichever occurs earlier.
I. Section 2 of this act shall take effect as provided in section 3 of this act.
II. The remainder of this act shall take effect on September 1, 2024.
24-3067
Revised 12/13/23
SB 308-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the state minimum hourly rate.
FISCAL IMPACT: [ X ] State [ X ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None
| |||||
Expenditures | $0 | $0 | $373,000 | Indeterminable Increase | ||
Funding Source(s) | General Fund Various Government Funds | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] No • Does this bill authorize new positions to implement this bill? [X] No | ||||||
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Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
County Revenue | $0 | $0 | $0 | $0 | ||
County Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable | ||
Local Revenue | $0 | $0 | $0 | $0 | ||
Local Expenditures | $0 | $0 | $0 | $0 | ||
METHODOLOGY:
This bill provides for increases in the minimum hourly rate.
The Department of Administrative Services assumes this bill would apply to both full-time and part-time employees working for the State of New Hampshire. The Department states it would perform a system upload to the State’s payroll system each year to increase the pay of employees who are earning less than the new minimum hourly rates beginning in FY 2025. The Department estimated the cost for Executive Branch agencies using data on current hourly rates of pay for all part-time and full-time employees. The Department identified all current full-time, part-time positions that would be impacted by the increase in the hourly rate of pay. The Department indicated there are no State employees compensated at, or below, $12 per hour and there would be no fiscal impact in FY 2024. The estimated cost of $372,869 for FY 2025 includes the fiscal impact of raising the wage to $15 per hour, considering the 2% pay increase included in the 2023-2025 Collective Bargaining Agreement, for state employees. The Department indicated the fiscal impact for fiscal years beyond FY 2025 is indeterminable.
The New Hampshire Municipal Association assumes, based on their analysis of hourly wage data from the Bureau of Labor Statistics since 2006 and trended forward, that this bill would not impact local revenue or expenditures.
The New Hampshire Association of Counties indicated it is not able to determine the number of employees that would be impacted by the bill or how wage rates for county employees may change. The Association is not able to determine how the bill may impact county expenditures.
AGENCIES CONTACTED:
Department of Administrative Services, New Hampshire Municipal Association and New Hampshire Association of Counties