HB312: repealing the minimum wage law.

HB 312-FN - AS INTRODUCED

2017 SESSION

17-0394

06/09

HOUSE BILL 312-FN

AN ACT repealing the minimum wage law.

SPONSORS: Rep. Silber, Belk. 2

COMMITTEE: Labor, Industrial and Rehabilitative Services

ANALYSIS

This bill repeals the New Hampshire minimum wage law.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0394

06/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seventeen

AN ACT repealing the minimum wage law.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Repeal. RSA 279, relative to the minimum wage law, is repealed.

2 Tax on Meals and Rooms; Exception to Tax; Gratuities Added to Taxable Meal or Room Charges. Amend RSA 78-A:6-a, II(a) to read as follows:

(a) The gratuity is not used by the operator [in lieu of the tipped employee minimum wage requirements of RSA 279:21, or] as a pool from which bonuses are paid to managerial personnel;

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO 17-0394

12/29/16

HB 312-FN- FISCAL NOTE

as introduced

AN ACT repealing the minimum wage law.

FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

Appropriation

$0

$0

$0

$0

Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Expenditures

$0

$0

$0

$0

Funding Source:

[ X ] General [ ] Education [ ] Highway [ ] Other

LOCAL:

Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Expenditures

$0

$0

$0

$0

METHODOLOGY:

This bill repeals RSA 279, relative to the State's minimum wage. This includes the minimum wage for tipped employees, deductions for room and board, school to work programs for students and people with disabilities, record keeping requirements, exemptions of child and spouse wage payment, tip pooling and tip sharing guidelines. In the absence of a state minimum wage, federal law mandates a minimum wage of $7.25 and includes record keeping requirements. Further, federal law requires tipped employees to be paid a minimum base rate plus tips. This bill also eliminates a reference to the minimum wage statute relative to the exception from the Meals and Rooms (M&R) tax for gratuity. Under the existing statute (RSA 78-A:6-a) in order for the gratuity added to a taxable meal or taxable room under the M&R tax statute to be exempted from the tax, the gratuity must not be paid by the operator in lieu of the tipped employee minimum wage requirement in RSA 279 (among several other criteria).

The Department of Revenue Administration states the elimination of a criteria to qualify for an exemption could impact the amount of gratuity qualifying for the M&R tax exemption pursuant to RSA 78-A:6-a. The Department has insufficient information regarding the amount of gratuity currently qualifying for an exemption from the M&R tax pursuant to RSA 78-A:6-a or the amount of gratuity that would qualify for the exemption upon removal of the criteria proposed by this bill. Consequently, the Department is unable to estimate the impact this bill will have on state revenues. Any impact on M&R tax revenue could impact revenue provided to municipalities pursuant to RSA 78-A:26.

The Department of Labor estimates this bill will decrease the number of civil penalties assessed resulting in a general fund decrease of approximately $34,000 in FY 2018 and FY 2019 and by $35,000 in FY 2020 and FY 2021 based on past history and future projections.

AGENCIES CONTACTED:

Department of Labor and Department of Revenue Administration