Setting up a minimum wage by the country’s legislature is an important movement that has to be done by every country to stabilize the country’s economy and tackle poverty issues and like several other states, the Granite State, New Hampshire has a federal minimum wage of $7.25 which is one of the lowest of any neighboring states doubtlessly. Sometimes discussing wages or salaries might seem like a small issue, but actually, is the biggest concern to discuss. New Hampshire is the only state that has not changed its minimum wage for years and now it’s become consistent, creating problems for the jobs that are earning less than minimum wage.
To understand and explore more about this problem, let us look into the history, laws, and disputes regarding New Hampshire’s minimum wage.
What is the minimum wage in NH last year?
The minimum wage in New Hampshire last year was $7.25 and had not changed in the last 13 years. The Fair Labor Standards Act (FLSA) and the Department of Labor, US are solely responsible to make changes in minimum wages of the states, which they have tried to do so over the years, but unable to since 2009. Now, this has remained consistent with the federal minimum wage.
When does the New Hampshire minimum wage increase?
The New Hampshire minimum wage hasn’t really increased yet, but it will be increased by 2024. At the beginning of 2022, 21 states across the country increased their minimum wages.
Minimum Wage Laws in New Hampshire
If you move to New Hampshire as an ex-pat or as a job seeker, you must know about minimum wage laws prevailing in New Hampshire. Here, the Fair Labor Standards Act’s federal minimum wage is the benchmark used to calculate the law’s minimum payment. Employers in New Hampshire must abide by federal minimum wage rules, which currently put the federal minimum wage at $7.25 per hour.
Employers working in any organization in New Hampshire have to pay their employees in compliance with the minimum wage law if they wish to pay them the NH minimum wage. Employers will be hired based on their location and profession, but they won’t be paid following their field of expertise. Employers will get less money than the legal minimum wage. Employers cannot pay apprentices more minor than the bare minimum wage under New Hampshire law.
The Minimum Wage in New Hampshire For Different Categories
New Hampshire has a minimum wage equal to the federal minimum wage. As a result, if employers earn a minimum salary, they won’t be able to pay NH property tax rates by town.
- Tipped employees: An employer should provide a base rate to a tipped employee of a restaurant, hotel, motel, inn, or lodge that is habitually and routinely greater than $30 per month in gratuities received directly from the client. This base rate shall be at least 45% of the appropriate minimum wage.
- Minors under the age of 18: Minors under 18 in New Hampshire can get an employment certificate from their school, usually by speaking with a guidance counselor or school administrator. If the minor satisfies all requirements set out by the state for employment, an Employment Certificate will be given.
- Employees considered: Despite the number of hours done, those who regularly work more than 35 hours each week. An employee is considered working full time if they put in 35 hours or more at their job during the survey reference week.
- Federal contractor employees: Unless an exemption exists, employers are required by state and federal law to pay workers who work more than 40 hours per week an overtime premium equivalent to 1.5 times their usual rate of pay. It might be challenging to determine whether an employee is exempt or not from overtime rules, so you should get advice from a knowledgeable employment attorney or the New Hampshire Department of Labor.
Will the minimum wage change next?
Till now, No such initiatives or current bills have been planned and proposed to raise the minimum wage in New Hampshire. However, speculations are being made among the people of New Hampshire, that the minimum wage might rise in steps from $10 per hour to $12, then $15 per hour in near future, most probably, by the year 2024.
How should small business owners prepare for Changes to the Minimum wage?
It’s almost been more than a decade since the minimum wage in New Hampshire had remained unchanged. In the upcoming years, the new legislation of any term might take a step forward and can create changes in the minimum wage. Therefore, small businesses must remain ready to accept the future changes that might happen in New Hampshire minimum wage, 2023 and further on, by following these steps:
- Reevaluate your staffing plan: Check out the sales, purchases, taxes, and other finances every hour, week, and month to know about the present staffing levels. On the basis of the current financial situation, plan for future hiring. If your sales are seasonal, you can go for hiring contractual employees, otherwise, you might not need new employees every year.
- Hire the right people: Hiring an eligible employee must be your priority. Undoubtedly you are operating a small business, therefore, hire fresher and eligible employees more than experienced ones. This might cost you less as you can pay a generous minimum wage to newbies. Once your team is ready, provide employee confinement and training mandatorily for the growth and development of your business.
- Upgrade your technology: Improve your small business by focusing on major issues like team management, staffing, placing modern machinery, and employing new staff, in order to make it a successful one.
Which Jobs Don’t Pay Minimum Wage?
There still exist some jobs in NH that don’t even mean what the minimum wage is and workers are forced to get wages less than the federal minimum wage. These jobs include:
- Ski resort employees
- Commission based employees
- Sales employees
- Summer camp staffs
- Golf caddies
- Employees having less than six months of job experience or freshers
- Part-time workers
- Sometimes tipped employees
What is the Minimum Wage for Tipped Employees?
The minimum wage for tipped employees in New Hampshire is as low as $3.27 per hour which summed up to 45% of the federal minimum wage. It includes restaurant servers, part-time staff in a restaurant or hotels, and hotel staff who are regularly getting paid more than $30 in tips per month.
In July 2021, the NH government passed an updated bill, making an ideal tipped minimum wage of $3.27/hr, which means that no such change for tipped workers will happen if the minimum wage increases in the future.
According to state law, New Hampshire’s minimum wage is set at the current federal minimum wage of $7.25 per hour. If they work all 52 weeks, a person making this income for 40 hours a week will make roughly $15,000. If the federal minimum wage rises above the state minimum pay, the New Hampshire minimum wage will immediately be replaced.
If you want to explore New Hampshire or enjoy outdoor recreation in New Hampshire, check out our article list of state parks in New Hampshire. It will also help you know more about the New Hampshire national and state parks list.