Raises the minimum wage to $10 per hour in 2021 and $12 per hour in 2023. The bill also revises the minimum wage for tipped employees.
New Hampshire state law requires the state minimum wage to be the same as the federal minimum wage. This means that New Hampshire’s current minimum wage is $7.25 per hour.
There are some exceptions to that minimum for certain types of workers.
NH minimum wage for tipped workers
Workers who regularly get more than $30 per month in tips can be paid a lower minimum wage – 45% of whatever minimum wage applies to them. For most tipped workers, that comes to $3.27 per hour. If a worker can show that their pay plus tips adds up to less than the minimum wage for the hours they worked, their employer must make up the difference.
Job training and student minimum wages
Workers with less than six months of experience in a job can be paid as low as $5.44 per hour if their employer gets approval from the New Hampshire Department of Labor.
Workers who are also full-time high school or college students can be paid a lower minimum wage—or even no wages at all— if they’re being employed to gain professional experience and their school or employer gets permission from the state.
Special minimum wages for disabled workers
Disabled workers may be paid less than the regular minimum wage, but only as part of an approved work training program.
Professions exempt from the minimum wage
Certain professions are exempt from the minimum wage law:
- household and domestic labor
- summer camp employees
- golf caddies
- commissioned sales employees
- some ski area employees
- children working for parents or grandparents
- spouses who work in support of their spouse’s business
Policies in other states
New Hampshire is one of 21 states that tie their minimum wage to the federal level. There are also five states with no minimum wage. In those states, the federal minimum also applies.
Several states have minimum wages set higher than the federal level, ranging from $7.50 in New Mexico to $12.50 in Washington, D.C.
Finally, there are two states, Wyoming and Georgia, where the state minimum wage is set lower than the federal minimum. This wage would only apply to workers exempted from the federal minimum, such as casual babysitters or seasonal workers.
Currently, New Hampshire is the only state in New England to use the federal minimum wage, with all other states in the region setting a higher rate.
Raising the minimum wage
There have been several recent efforts to increase the minimum wage in New Hampshire. The most recent, SB 10, passed the Legislature in 2019 but was vetoed by the governor.
Minimum wage increases can take different forms. Some are a flat, one-time increase. Others involve a schedule of gradual increases. In eighteen states, increases in the minimum wage are indexed. This means they rise automatically if a certain measure goes up such as the statewide median wage or the regional consumer price index.
Where do you stand on raising the minimum wage? Your legislators are debating this issue now. Find your reps and share your story with them.
PROS & CONS
“New Hampshire should raise the minimum wage.”
- A full time worker earning $7.25 per hour makes less than $300 per week. In New Hampshire that’s not even enough to cover the average cost of rent, never mind other living expenses. According to an MIT study, a single person in Concord needs to earn $25,570 per year before taxes in order to afford basic necessities such as food, rent, and healthcare. Working full time at $7.25 means an annual income of around $15,000.
- Minimum wage workers generally have to spend every dollar they earn. That means any increase in their wages goes straight into boosting the revenues of businesses in their communities, helping to support the economy.
- New Hampshire’s minimum wage has actually lost purchasing power over the past several decades. That means the same amount of money buys less services and goods than it did in the past.This means the minimum wage here has effectively gone down.
- It’s not just young people or those just entering the workforce who are paid minimum wage. Three out of four minimum wage workers are over the age of 20.
The preceding points were made by the New Hampshire Fiscal Policy Institute in a March 2014 article, “Long Since Due: An Increase in New Hampshire’s Minimum Wage”. Statistics cited have been updated.
“New Hampshire should not increase its minimum wage.”
- Raising the minimum wage will make it harder for businesses to create entry-level jobs for young and first-time workers. If New Hampshire wants to increase the demand for more hourly workers, making it more expensive to hire them is not the way to go about it.
- Only 2.1% of workers in New Hampshire actually are paid the minimum wage or less. Over half of these are tipped employees who generally earn much more than $7.25 per hour.
- Most minimum wage workers receive a raise within the first year they’re employed.
- Forcing small retail or service companies, like those that dominate New Hampshire tourism industry, to pay the same high wages as big corporations could put them out of business.
- Studies have shown that if minimum wages are raised, hours for some low earners will be cut or companies will reduce their payroll in order to even out their costs. That means fewer available jobs, particularly for new or low-skilled workers.
- Raising the minimum wage will force increases in hourly wages all the way up the pay scale, increasing costs that will have to be made up through cutbacks elsewhere.
The preceding points were made by Bruce Berke, state director for the New Hampshire branch of the National Federation of Independent Business, in response to a 2014 effort to raise the minimum wage. Statistics cited have been updated.
Raises the state minimum wage to $10 per hour.
Raises the state minimum wage to $9.50 in 2020 and $12 in 2021, with cost of living adjustments every following year. This bill also raises the base rate for tipped employees from 45% to 60% of the minimum wage. Lastly, this bill establishes a "training wage," one dollar below minimum wage, for employees under age eighteen for the first three months of employment. The House amended the bill to raise the minimum wage to $9.50 in 2020, $10.75 in 2021, and $12 in 2022. The House amendment also increases the tipped minimum wage from 45% to 50% of the minimum wage rate. Lastly, the House version allows sixteen year-olds to be paid one dollar less.
Requires employers to provide advance notice of work schedules, and generally requires at least 10 hours of rest between shifts. This bill also bans credit checks for any employment-related decision. Lastly, the bill eliminates the lower minimum wage for tipped employees.
Gradually raises the state minimum wage, starting at $12 per hour in 2020 and ending at $15 per hour in 2024. The bill also raises the tipped minimum wage, although in 2024 it would still be 45% of the regular minimum wage. The bill requires cost of living adjustments every year. This bill also allows cities and towns to set a higher minimum wage. Lastly, this bill establishes a "training wage," no lower than $8.50, for employees under age eighteen for the first three months of employment. The House amended the bill to start at $8.50 in 2020 and end at $15 in 2025, with cost of living increases. The amended bill also raises the tipped wage to 50% of the regular minimum wage.
Increases the minimum wage to $10 per hour in 2020, then to $11 in 2022, except starting that year, employers would have to pay at least $12 per hour if they do not offer at least 10 paid sick days to employees. The House and Senate amended the bill to raise the minimum wage to $10 per hour in 2020 and $12 per hour in 2022, regardless of sick time.
Gradually increases the minimum wage for tipped employees to the state or federal minimum wage, whichever is higher, starting January 1, 2020.
Increases the minimum wage for employers that do not offer health benefits to the employee. This bill also gradually raises the minimum wage for all employees.
Establishes a committee to study business tax credits for companies that pay a liveable wage and provide adequate benefits to their employees.
Prohibits an employer from requiring an employee who earns less than $15 per hour to enter a noncompete agreement.
Raises the minimum wage to $9.50 in 2018 and $12 in 2019, with annual cost of living adjustments starting in 2020. The bill also establishes a training wage that is one dollar less than the minimum wage for the first three months of employment for someone sixteen or seventeen years-old.
Repeals the state minimum wage law.
Raises the minimum wage to $8.50 On September 1, 2017, $10 on March 1, 2018, and $12 on September 1, 2018.
Gradually increases the minimum hourly rate for tipped employees to the full federal minimum wage by 2020.
Raises the minimum wage to $8.25 in 2017, $9 in 2018, and $9.50 in 2019.
Raises the minimum wage to $12 per hour.
Raises the minimum wage to $16 per hour.
Enables counties and municipalities to establish minimum wage rates for all individuals employed within such county or town.
Establishes a state minimum hourly wage to be adjusted by the cost of living index, starting at $8.25 in 2016.
Prohibits employers from employing individuals with disabilities at an hourly rate lower than the federal minimum wage except for practical experience or training programs.
Prohibits employers from employing individuals with disabilities at an hourly rate lower than the federal minimum wage except for practical experience or training programs and family businesses.
Raises the minimum wage to $9.10 in 2016, $11.40 in 2017, and $14.25 in 2018. Starting in 2019, the minimum wage is adjusted according to cost of living.
Raises the minimum wage to $8.25 in 2016, $9.00 in 2017, and $10.00 in 2018.
Raises the minimum wage, starting at $9 per hour.
Creates a committee to study ending the payment of sub-minimum wages to persons with disabilities.
Sets the state minimum wage at $7.25, in place of federal minimum wage.
Ties the New Hampshire minimum wage to the federal minimum wage.
Should NH raise the minimum wage?
A House committee has approved a bill that would gradually raise NH's minimum wage to $13 per hour by 2024. Last year, Gov. Sununu vetoed a similar bill to raise the minimum wage to $12 per hour. The full House will vote on the new bill in January. Have an opinion about raising the minimum wage? Contact your representatives and share your thoughts.
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