additional commentary by Rep. Timothy Horrigan; February 24, 2013, updated January 7, 2014
[January
7, 2014] One of these bills, HB 501, passed the House, though only
after being severely amended. The amended version merely set the
state minimum wage at $7.25/hour, which is the federal rate. It died
in the Senate on a party-line vote, 13 Republicans to 11 Democrats. A
new bill, HB 1403, was introduced in 2014
See Also:
February 19 NH Public Radio story: "Bills Would Boost New Hampshire's Minimum Wage"
The minimum wage is a hot topic this year in the New Hampshire House this year. One of the Republicans proudest achievements in 2009-2010 was eliminating the state minimum wage. (This was a somewhat empty achievement, however, since the federal minimum wage of $7.25/hour still applies.) I cosponsored two of four minimum wage bills, and testified in favor of a third. One of those three bills will likely pass the House, but the Senate has a 13-11 Republican majority. Hopefully, we will be able to "flip" 2 republican Senators.
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HB 127-FN-LOCAL – AS INTRODUCED 2013 SESSION 13-0084 06/01 HOUSE BILL 127-FN-LOCAL AN ACT relative to the state minimum hourly rate. SPONSORS: Rep. P. Sullivan, Hills 10; Rep. Horrigan, Straf 6 COMMITTEE: Labor, Industrial and Rehabilitative Services ANALYSIS This bill: I. Adds a state minimum hourly wage. II. Requires the commissioner of the department of labor to calculate the minimum wage in a manner that reflects the cost of living. III. Requires a majority vote of the general court to approve such adjustment. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Explanation: Matter added to current law appears in bold italics. Matter
removed from current law appears [ Matter which is either (a) all new or (b) repealed and reenacted appears in regular type. |
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13-0084 06/01 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Thirteen AN ACT relative to the state minimum hourly rate. Be it Enacted by the Senate and House of Representatives in General Court convened: 1 State 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 $8.00 or that set forth in the federal minimum wage law, as amended. On September 1, 2013 and biennially thereafter, the commissioner shall calculate a minimum hourly rate by adjusting the current year's minimum hourly rate by the rate of inflation based on the Consumer Price Index for All Urban Consumers, Northeast Region, as published by the United States Bureau of Labor Statistics. Each adjusted minimum hourly rate calculated under this section shall be reported to the general court. No adjustment to the minimum hourly rate shall take effect unless it is approved by a majority vote of the general court. Any approved adjustment shall take effect the following January 1. Tipped employees of a restaurant, hotel, motel, inn or cabin, 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 for all hours worked, the employer shall pay the employee the difference to guarantee the applicable minimum wage. The limitations imposed hereby shall be subject to the following exceptions: 2 Effective Date. This act shall take effect 60 days after its passage.
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LBAO HB 127-FN-LOCAL - FISCAL NOTE AN ACT relative to the state minimum hourly rate. FISCAL IMPACT: The Department of Labor and New Hampshire Municipal Association state this bill, as introduced, may have an indeterminable impact on local expenditures in FY 2013 and each year thereafter. There will be no fiscal impact on state and county expenditures, or state, county, and local revenue. METHODOLOGY: The Department of Labor states this bill establishes a minimum wage for employees in the state of the higher of $8.00 per hour or the amount established in federal minimum wage law. The bill further requires the commissioner of the Department of Labor, on September 1, 2013 and biennially thereafter, to recalculate the minimum wage by adjusting the current year's wage by the rate of inflation. The revised wage would be subject to approval by a majority vote of the general court. The Department states it will need to revise labor posters to reflect the increased minimum wage. The Department states, however, that the posters are regularly revised in any event, so there would likely be no cost of revision to the state. Similarly, the Department already has an inspection process to ensure compliance with current labor laws, and so the cost of enforcement will be absorbed. The New Hampshire Municipal Association states the bill's impact on local expenditures is indeterminable. The Association states it does not have data on the number of municipalities, if any, currently employing individuals at less than the minimum wage proposed by the bill. The Department of Administrative services states the bill will have no impact on state expenditures, since the current minimum hourly wage for state employees is higher than that proposed by the bill. The New Hampshire Association of Counties states the bill will have no impact on county expenditures, since all county employees currently earn a wage higher than the minimum proposed by the bill. |
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HB 501-FN – AS INTRODUCED 2013 SESSION 13-0128 06/09 HOUSE BILL 501-FN AN ACT relative to the minimum wage. SPONSORS: Rep. Horrigan, Straf 6; Rep. Weed, Ches 16; Rep. K. Ward, Straf 21; Rep. P. Sullivan, Hills 10; Rep. Berch, Ches 1; Rep. Phillips, Ches 5 COMMITTEE: Labor, Industrial and Rehabilitative Services ANALYSIS This bill establishes a state minimum hourly wage. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Explanation: Matter added to current law appears in bold italics. Matter
removed from current law appears [ Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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13-0128 06/09 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Thirteen AN ACT relative to the minimum wage. 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 $8.25 or that set forth in the federal minimum wage law, as amended. Tipped employees of a restaurant, hotel, motel, inn or cabin, 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 for all hours worked, the employer shall pay the employee the difference to guarantee the applicable minimum wage. The limitations imposed hereby shall be subject to the following exceptions: 2 Community Development Finance Authority; Definitions. Amend RSA 162-L:1, VIII to read as follows: VIII. "Primary employment" means work which pays at least 1 1/2 times the minimum wage as established under RSA 279:21 or under federal law, whichever is greater, which offers adequate fringe benefits, including health insurance, and which is not seasonal or part-time. 3 Effective Date. This act shall take effect September 1, 2013. |
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LBAO HB 501-FN - FISCAL NOTE AN ACT relative to the minimum wage. FISCAL IMPACT: The Department of Labor and New Hampshire Municipal Association state this bill, as introduced, will have an indeterminable impact on local expenditures in FY 2014 and each year thereafter. There will be no fiscal impact on state and county expenditures, or state, local, and county revenue. METHODOLOGY: The Department of Labor states this bill establishes a minimum wage for employees in the state of the higher of $8.25 per hour or the amount established in federal minimum wage law. The Department of Labor states it will need to revise labor posters to reflect the increased minimum wage. The Department states, however, that the posters are regularly revised in any event, so there would likely be no cost of revision to the state. Similarly, the Department already has an inspection process to ensure compliance with current labor laws, and as a result the cost of the enforcement will be absorbed. The New Hampshire Municipal Association states the bill's impact on local expenditures is indeterminable. The Association does not indicate whether any municipalities currently employ individuals earning less than the minimum wage proposed by the bill. The Department of Administrative services states the bill will have no impact on state expenditures, since the current minimum hourly wage for state employees is higher than that proposed by the bill. The New Hampshire Association of Counties states the bill will have no impact on county expenditures, since all county employees earn a wage higher than the minimum proposed by the bill. |
Here is my written testimony on the various House minimum wage bills:
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Testimony
in favor of HB-127 |
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Politicians like myself are fond of talking about the rate of inflation. The Consumer Price Index may not be an ideal measure of the rate of inflation, but it's the best measure we have. Those of us on the left, for example, frequently complain about health insurance costs and energy prices going up faster than the rate of inflation. The more conservative members of the New Hampshire House will probably be making indignant references to the rate of inflation almost every day during the upcoming state budget debate. We will hear a lot about how state and local government agencies' expenditures are going up faster than the rate of inflation. We will hear a lot about how tuition at our public institutions is going up faster than the rate of inflation. The Consumer Price Index does not necessarily tell us much about what's happening to the price of providing health care. It doesn't tell us much about energy markets. It doesn't tell us much about the costs of providing governmental or educational services. It is however, a very good measure of the costs of common consumer goods, and hence of the costs of basic sustenance. Relative to the CPI, the minimum wage is worth much less than it was in the past, even though our workers are more productive than ever. This bill creates an expectation that the minimum wage— and low level wages in general— should go up at the rate of inflation as measured by the CPI. Every year the legislature will receive a report adjusting the current minimum wage for inflation. It is possible to have negative inflation or "deflation" and that case the suggested minimum wage would be less than the current wage. The General Court wouldn't have necessarily to change the minimum wage to keep up with inflation, but this annual report would encourage legislators re-examine the issue of the minimum wage every year. The initial increase of 10.3% from $7.25 to $8.00 is about the same as the rate of inflation over the past five years.
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Testimony
in favor of HB 241-FN
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The Concord Monitor recently stated that there are three competing minimum wage bills in the General Court. There are actually four of them. I am the prime sponsor of HB 501, which is identical to this bill, except for the amount of the minimum wage. Rep. Robertson's bill would raise the minimum wage to $9.25 an hour. This would be a bold step up from the current federal rate of $7.25/hour, but it is well worth considering. If this bill passes, a worker who manages to stay employed for the standard 2,000 hours per year will make something approaching a living wage: $18,500 year. This proposed rate would literally make it possible for one breadwinner to support a family of 3 at a few hundred dollars more than the official federal poverty threshold. I favor raising the minimum wage for three reasons:
A small benefit of this bill for college towns like Durham is that students working under the Federal Work Study program would get a raise: these jobs pay the minimum wage or perhaps a little more. The Federal Work Study program is a model for how to handle workers who may not currently be worth the full minimum wage: the students get the full minimum wage, but the college only pays half the cost. The rest of the wage is subsidized not by the student worker but by the government. |
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Testimony
in favor of HB 501-FN |
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There are three competing minimum wage bills in the New Hampshire House this winter. I spoke in favor of two of them on January 29th.. One of them raised the minimum wage to $9.25/hour, a rate so high it would literally allow a minimum wage worker to support a family of 3 at the federal poverty level. Another one started out at $8.00/hour and indexed the wage each year to the consumer price index. Since January 29th, the President proposed raising the national minimum wage to $9.00, indexing it for inflation. The bill before you today only raises the minimum wage to $8.25/hour with no indexing for inflation. If this bill passes, full-time minimum-wage employees would still be unable to support a family, at least not at the poverty level. But, $8.25/hour is a significant step up from the current rate of $7.25/hour. Only a small percentage of minimum wage workers are teenagers working part time: it is about 15%, Even those young workers deserve a living wage and in fact most of them are members of families with below-average incomes— often, far below average. I favor raising the minimum wage for three reasons: Every worker deserves a fair wage Wages in general are too low, and this bill will encourage employers to pay their workers more, even those who are making more than the minimum wage. A higher minimum wage will encourage New Hampshire's job creators to focus on creating high-value-added jobs. |
All My 2013 Bills:
HB 127 "relative to the state minimum hourly rate" & HB 501 "relative to the minimum wage"
HB 129: "relative to access to galleries in the general court"
HB 473: "relative to retirement system status for members of the university system police force"
HB 579: "establishing an independent legislative redistricting commission"
See Also:
February 19 NH Public Radio story: "Bills Would Boost New Hampshire's Minimum Wage"
HJR 2: "A RESOLUTION making restitution to Jeffrey Frost for inappropriate prosecution"
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