State Minimum Wage vs. Federal Minimum Wage in New Hampshire

1. What is the current minimum wage in New Hampshire, and how does it compare to the federal minimum wage?


As of 2021, the current minimum wage in New Hampshire is $7.25 per hour, which is the same as the federal minimum wage. New Hampshire does not have its own state minimum wage law, so it follows the federal minimum wage rate. In comparison, some states have a higher minimum wage than the federal rate.

2. Which states have a higher minimum wage than the federal level, and how much higher is it?


As of 2021, 29 states and the District of Columbia have higher minimum wage rates than the federal level. The following is a list of states that have a higher minimum wage, and by how much it is higher:

1. California: $14 per hour (increasing to $15 per hour in 2022)
2. Washington State: $13.69 per hour
3. Oregon: $12.75 per hour (varies by region)
4. Colorado: $12.32 per hour
5. Arizona: $12.15 per hour
6. Vermont: $11.75 per hour
7. New Mexico: $10.50 per hour (increasing to $11.50 in 2022)
8. Connecticut: $12 per hour (increasing to $13 in 2023)
9. Washington D.C.: $15 per hour (increasing to $15.20 in 2022)
10. Illinois: $11 per hour (increasing to $15 in 2025)

3. How often does New Hampshire reassess and potentially raise its state-level minimum wage?


The New Hampshire minimum wage is adjusted annually on September 30th based on the Consumer Price Index. So, it is potentially raised every year if there is an increase in the CPI.

4. What factors influence the decision to set a state-specific minimum wage rather than relying on the federal level?


1. Cost of living: States with higher costs of living may choose to set a higher minimum wage to compensate for the higher expenses.

2. Economic conditions: Some states with stronger economies may choose to have a higher minimum wage to attract workers and stimulate economic growth.

3. Political climate: The political ideology and priorities of state lawmakers can play a significant role in determining the minimum wage level. Some states may prioritize workers’ rights and economic equality, leading to higher minimum wages.

4. Demographics: States with a larger proportion of low-wage workers or a high concentration of industries that typically pay lower wages, such as retail or agriculture, may choose to set a state-specific minimum wage to better reflect the needs of their workforce.

5. Competition with neighboring states: State-specific minimum wages may also be influenced by competition with neighboring states. If neighboring states have significantly different minimum wages, it could impact businesses’ decisions on where to locate or expand.

6. Labor market conditions: The labor market strength in different regions can also impact the decision to set a state-specific minimum wage. States with high unemployment rates may set lower minimum wages to make it easier for businesses to hire employees, while those with low unemployment rates may raise the minimum wage to create more incentives for workers.

7. Legislative process: The legislative process and political dynamics in each state can also affect the decision-making around setting a state-specific minimum wage. Some states have easier processes for changing their minimum wage laws than others, and this can influence how frequently or easily they can adjust their minimum wage levels.

8. Public opinion and advocacy groups: Public opinion and pressure from advocacy groups, such as labor unions, can also influence state lawmakers’ decisions on setting a specific minimum wage level. These groups often advocate for higher wages for workers in their respective states.

9. Historical precedent: The history of past changes in the state’s minimum wage level can also play a role in decision-making. States that have a track record of regularly adjusting their minimum wage may be more likely to continue doing so.

10. Local peculiarities: Some states may have unique economic or social considerations that make it necessary to set a state-specific minimum wage rather than relying on the federal level. For example, states with large urban areas may set a higher minimum wage to address higher living costs in cities, while rural areas may not require the same minimum wage level.

5. Are there any exemptions or exceptions to New Hampshire’s minimum wage law, such as for certain industries or types of workers?


Yes, there are exemptions and exceptions to New Hampshire’s minimum wage law. These include:
– Workers who are employed by a parent or sibling
– Seasonal employees at recreational or amusement parks, including golf courses and ski areas
– Voluntary hospital workers
– Overtime-exempt administrative, executive, or professional employees who earn a salary above a specific threshold determined by the state labor commissioner
– Small businesses with annual gross sales of less than $500,000 (excluding hotels, restaurants, and retail businesses)
– Workers under the age of 18 who work part-time or after-school hours
– Apprentices and trainees under certain conditions
Additionally, employers may pay tipped employees a lower minimum cash wage as long as their total earnings (including tips) equal or exceed the standard minimum wage.

6. How does New Hampshire’s cost of living factor into establishing a state-level minimum wage?


The cost of living in New Hampshire is one of the factors that is considered when determining the state-level minimum wage. The cost of living, or cost of goods and services, can vary from state to state and can impact the purchasing power of individuals living in those states. In states with a higher cost of living, it may be more difficult for individuals to make ends meet on a lower minimum wage. As such, the minimum wage in New Hampshire may need to be adjusted to reflect the higher costs associated with living in the state. This could also help reduce income inequality and ensure that workers are able to afford basic necessities such as housing, food, and healthcare.

7. Have there been recent movements or proposed legislation to increase New Hampshire’s minimum wage beyond the federal level?


Yes, there have been recent movements and proposed legislation to increase New Hampshire’s minimum wage beyond the federal level. In 2019, a bill was introduced that would increase the state’s minimum wage from $7.25 per hour to $12 per hour by 2022. This bill was passed by the House of Representatives but did not pass in the Senate.

In 2021, another bill was introduced that would gradually increase the minimum wage in New Hampshire to $15 per hour by 2025. However, this bill also failed to pass in the Senate.

Some localities in New Hampshire, such as Portsmouth and Durham, have enacted their own minimum wage laws that are higher than the federal level. These laws typically apply only to certain businesses or industries within those towns.

Additionally, there have been ongoing discussions and advocacy efforts at both the state and local levels to raise the minimum wage in New Hampshire to better reflect the cost of living in the state.

8. Does New Hampshire’s minimum wage apply to all workers, or are there different rates for tipped employees, minors, or other groups?


Currently, New Hampshire’s minimum wage applies to all workers and there are no exemptions or different rates for tipped employees, minors, or other groups. However, there is a subminimum wage for trainees and apprentices under certain conditions.

Every employer in New Hampshire must pay their employees the state minimum wage of $7.25 per hour. This rate was last updated in 2009 and is tied to the federal minimum wage.

Tipped employees may also be paid the minimum cash wage of $3.27 per hour as long as they receive enough tips to bring their total earnings to at least $7.25 per hour. If an employee’s tips do not meet this threshold, the employer is required to make up the difference.

Minors (under the age of 18) must be paid at least the minimum wage rate unless they are exempt from child labor laws or participating in a training program that has received approval from the State Department of Labor.

There may also be different minimum wage rates for federal contractors who work on projects in New Hampshire, but these rates vary depending on the type of work being performed.

Overall, it is important for employers to ensure that all workers are being paid at least the state minimum wage and any applicable exemptions or exceptions are being properly applied.

9. Is New Hampshire currently facing any challenges or controversies regarding its state minimum wage law?

As of 2021, there are no major challenges or controversies regarding New Hampshire’s state minimum wage law. However, there have been ongoing discussions and debates about raising the minimum wage in the state.

In February 2021, the New Hampshire House of Representatives passed a bill to gradually increase the state’s minimum wage from $7.25 to $12 per hour by 2023. The bill also included a provision for cost-of-living adjustments after 2023. However, the bill has yet to be voted on by the Senate and may face opposition from some lawmakers who argue that raising the minimum wage could hurt small businesses.

Additionally, there have been ongoing discussions about whether New Hampshire should increase its minimum wage to match neighboring states like Vermont and Maine, which currently have higher minimum wages.

Overall, while there are no significant challenges or controversies surrounding New Hampshire’s current state minimum wage law, there is ongoing debate and discussion about potentially increasing it in the future.

10. What impact does raising the state-level minimum wage have on businesses and the overall economy in New Hampshire?


The impact of raising the state-level minimum wage on businesses and the overall economy in New Hampshire can vary depending on a number of factors, including the size and type of businesses affected, the scope and timing of the increase, and the current economic conditions. However, some potential impacts may include:

1. Increased labor costs for businesses: Employers affected by a higher minimum wage may have to spend more money on employee wages, potentially leading to higher operating expenses.

2. Higher prices for consumers: In order to cover the added labor costs, some businesses may pass on the cost to consumers through higher prices for goods or services.

3. Decreased hiring: Some smaller businesses or those with tighter profit margins may scale back on hiring new employees or reduce hours for existing employees in order to offset the increased labor costs.

4. Job loss: In extreme cases, businesses may be forced to lay off workers if they are unable to cover the increased labor costs.

5. Increased productivity: On the other hand, advocates of raising the minimum wage argue that it can lead to increased productivity among workers who are now earning a livable wage.

6. Stimulated consumer spending: By putting more money into workers’ pockets, a higher minimum wage could also stimulate consumer spending and boost demand for goods and services, which can have positive effects on local businesses.

7. Improved employee retention and morale: A higher minimum wage may also improve employee retention rates as workers are less likely to leave their jobs for better-paying opportunities.

8. Reduction in poverty and welfare spending: An increase in the minimum wage could potentially lift some low-income individuals out of poverty, reducing their reliance on government assistance programs.

9. Small business exemptions: Some policy proposals include exemptions or phase-in periods specifically targeting small businesses with fewer than a certain number of employees or lower revenue thresholds in order to minimize any negative impacts.

10. Overall effect on economy: The overall impact of raising the minimum wage on the state’s economy is complex and can vary depending on a variety of factors. While some businesses may face challenges due to increased labor costs, others could benefit through increased consumer demand. Ultimately, the overall strength and stability of the local economy will play a role in how businesses adapt to a higher minimum wage.

11. Does New Hampshire’s low unemployment rate influence discussions about potential increases to the state minimum wage?


It is possible that discussions about potential increases to the state minimum wage in New Hampshire are influenced by the state’s low unemployment rate. This is because a low unemployment rate often indicates a tight labor market, where employers may have to compete for workers by offering higher wages. In this scenario, there may be less opposition to raising the minimum wage as employers may already be paying their workers higher wages in order to attract and retain them. However, other factors such as the economic outlook and political climate may also play significant roles in discussions about increasing the minimum wage in New Hampshire.

12. How do neighboring states’ minimum wages compare to that of New Hampshire and affect local competition and worker migration?


The neighboring states of New Hampshire have varying minimum wage rates that may impact local competition and worker migration.

Maine, which borders New Hampshire to the north, currently has a minimum wage rate of $12.15 per hour as of January 2022. This is higher than New Hampshire’s current minimum wage of $7.25 per hour, which has not been increased since 2009. As a result, workers in Maine may be more likely to seek employment across the border in New Hampshire where the cost of living may be lower and job opportunities may be more plentiful.

Massachusetts, located to the south of New Hampshire, currently has a minimum wage rate of $15 per hour as of January 2022. This is much higher than both Maine and New Hampshire’s minimum wage rates. As a result, some businesses in border towns of both states may struggle with competition from higher-paying employers across state lines.

Vermont, another neighboring state to the west, also has a minimum wage rate of $11.75 per hour as of January 2022. This is slightly lower than Maine’s rate but still significantly higher than New Hampshire’s. Similarly to Maine and Massachusetts, there may be workers who are looking for employment opportunities in Vermont due to its higher minimum wage rate.

Overall, neighboring states’ higher minimum wages may create challenges for businesses in New Hampshire and could potentially lead to worker migration between states for better paying jobs. It also puts pressure on policymakers in New Hampshire to consider increasing the state’s minimum wage in order to remain competitive and attract or retain workers in the state.

13. Has New Hampshire’s state-level minimum wage kept pace with inflation over time?


No, New Hampshire’s state-level minimum wage has not kept pace with inflation over time.

In 2016, the state minimum wage was $7.25 per hour, which is the same as the federal minimum wage. This rate has not changed in over a decade.

According to data from the US Bureau of Labor Statistics, the purchasing power of $7.25 in 2021 is equivalent to only $5.93 in 2009 when adjusted for inflation. This means that workers earning the state minimum wage in New Hampshire are making significantly less in real terms than they were over a decade ago.

Additionally, while there have been some small increases to the federal minimum wage since 2009, New Hampshire has not increased its state minimum wage to match these adjustments.

Therefore, it can be concluded that New Hampshire’s state-level minimum wage has not kept pace with inflation over time and has fallen behind in providing adequate wages for workers to meet their basic needs.

14. Do unions play a role in advocating for increases to the state’s minimum-wage law in New Hampshire?

There is no one specific organization or group that advocates for increases to the state’s minimum-wage law in New Hampshire. However, unions and labor organizations do often support and participate in movements and campaigns calling for an increase to the minimum wage.

For example, in 2019, the AFL-CIO of New Hampshire supported a bill to gradually increase the state’s minimum wage from $7.25/hour to $12/hour over the course of three years. Additionally, unions representing workers in industries with lower wages, such as service and hospitality workers, may also advocate for higher minimum wages on behalf of their members.

Ultimately, unions can play a role in advocating for increases to the state’s minimum-wage law by using their collective bargaining power and political influence to push for policy change.

15. How does increasing the state-level minimum wage potentially impact income inequality within New Hampshire?


Increasing the state-level minimum wage can potentially reduce income inequality within New Hampshire in several ways:

1. Provides a higher wage for low-income workers: Raising the minimum wage ensures that workers at the bottom of the income spectrum receive a higher income, thus reducing the income gap between low- and high-income earners. This can also help lift families out of poverty and improve their quality of life.

2. Increases consumer spending: When low-wage workers earn more, they are likely to spend more on basic needs such as housing, food, and healthcare. This increased consumer spending can stimulate economic growth and create more job opportunities, potentially leading to a decrease in income inequality.

3. Reduces wage discrimination: A higher minimum wage could also address instances of wage discrimination based on gender or race by setting a universal standard for all workers in the state.

4. Encourages productivity and job retention: With a sufficient minimum wage, workers may be more motivated to be efficient and productive in their jobs, leading to improved job performance and potential for raises or promotions. This could also decrease employee turnover rates and promote job stability, which can contribute to overall economic growth.

On the other hand, increasing the state-level minimum wage could potentially have some negative impacts on income inequality such as:

1. Small businesses may struggle: Smaller businesses may have a harder time adjusting to an increased minimum wage due to limited resources compared to larger corporations. This could lead to increased prices for goods and services, potentially widening the income gap between those who can afford them and those who cannot.

2. Potential job loss: Some argue that raising the minimum wage could result in job losses as employers might have to lay off employees or automate tasks previously done by low-wage workers in order to offset increased labor costs.

3. Inflation: Increasing wages could potentially lead to inflation if businesses pass on their increased costs onto consumers through higher prices, thereby eroding any potential gains for low-wage workers.

Overall, the impact of increasing the minimum wage on income inequality in New Hampshire is a complex issue that depends on various factors such as the size and health of the state’s economy, industry composition, and consumer behavior. However, in general, raising the minimum wage can potentially reduce income inequality by providing a higher standard of living for low-wage workers and addressing certain forms of wage discrimination.

16. Do different counties or regions within New Hampshire have different local rates for their respective county/city compared to the overall state level?


Yes, different counties and regions within New Hampshire may have different local tax rates compared to the overall state level. This is because local tax rates are determined by individual cities and towns, which may have their own budget and financial needs. Therefore, the tax rate in one county or region may be higher or lower than another county or region in New Hampshire.

17. Are there efforts being made to align both federal and state laws regarding their respective national/state-wide minimum wages in New Hampshire?


Yes, there are efforts being made to align both federal and state laws regarding their respective national/state-wide minimum wages in New Hampshire.

In 2019, the New Hampshire House of Representatives passed a bill that would raise the state’s minimum wage from $7.25 per hour to $12 per hour by 2022. This aligns with the federal minimum wage increase proposed by President Biden, which seeks to raise the federal minimum wage from $7.25 per hour to $15 per hour by 2025.

However, the bill has not yet been passed by the New Hampshire Senate and there is ongoing debate about whether to adopt a higher state minimum wage or stick with the federal rate.

Additionally, some states have already passed laws to gradually increase their minimum wages above the federal level, leading to varying rates across states. Efforts are being made at the federal level to address this issue through legislation such as the Raise the Wage Act, which would increase the federal minimum wage and ensure that it automatically adjusts for inflation every year.

In order for both federal and state laws regarding minimum wages to be fully aligned, there would need to be agreement on a specific rate and timeline for when it would go into effect. This process can take time and may involve negotiations between different levels of government. In the meantime, states such as New Hampshire may continue to make their own decisions about their minimum wage laws while also considering potential changes at the federal level.

18. How do small businesses in New Hampshire navigate and adjust to changes in state-level minimum wage laws?


There are a few strategies small businesses in New Hampshire can use to navigate and adjust to changes in state-level minimum wage laws:

1. Stay informed about upcoming changes: Businesses should make an effort to stay up-to-date on any proposed or impending changes to the state’s minimum wage laws. This can include regularly checking official government websites, attending town hall meetings, and staying informed through local news sources.

2. Adjust budget and pricing: A higher minimum wage means increased labor costs for businesses. To mitigate the impact on their bottom line, businesses may need to adjust their budget accordingly and potentially increase prices on their products or services.

3. Evaluate staffing needs: In some cases, businesses may need to re-evaluate their staffing needs in light of a minimum wage increase. For example, they may need to reduce hours or roles for employees in order to maintain profitability.

4. Increase efficiency: Another way businesses can offset the cost of a higher minimum wage is by focusing on increasing efficiency in their operations. This could involve streamlining processes, reducing waste, or investing in technology that can save time and money.

5. Consider benefits and perks: Instead of increasing wages, some businesses may choose to offer additional benefits or perks as a way to attract and retain employees without significantly impacting their labor costs.

6. Seek financial assistance: If cash flow is a major concern for small businesses dealing with a minimum wage increase, there may be resources available at the state level such as grants or loans that can help supplement business expenses during this time.

7. Communicate with employees: It’s important for businesses to communicate openly with their employees about any changes resulting from a minimum wage increase. This can help build understanding and support from staff members who may be impacted by these changes.

8. Consult with legal counsel: Lastly, small businesses should consult with legal counsel if they have any questions or concerns about how best to navigate and comply with new minimum wage laws in their state. This can help ensure they are following all regulations and avoid any potential legal issues.

19. Has the state level minimum wage always been higher than the federal level in New Hampshire?

No, the state level minimum wage in New Hampshire has not always been higher than the federal level. For most of its history, New Hampshire used the federal minimum wage as its minimum wage level. It was only in 2014 that the state decided to set a higher minimum wage rate, which has since fluctuated and is currently set at $7.25 per hour, the same as the federal minimum wage.

20. In recent years, have there been any studies or reports on the impact of New Hampshire’s state minimum wage law on workers, businesses, or the economy?


There have been several studies and reports on the impact of New Hampshire’s state minimum wage law in recent years.

1. A 2017 report by the Economic Policy Institute (EPI) analyzed the impact of raising the minimum wage in New Hampshire to $12 per hour by 2022. The report found that this increase would directly benefit over 94,000 workers, and indirectly benefit an additional 66,000 workers through spillover effects. It would also increase the Gross Domestic Product (GDP) of the state by over $600 million, and create over 3,000 new jobs.

2. In 2018, a study commissioned by the New Hampshire Fiscal Policy Institute analyzed the impact of increasing the minimum wage to $12 per hour in two phases: $10.10 in 2019 and $12 in 2020. The study found that this increase would directly benefit over 110,000 workers, increase their annual earnings by an average of $2,900, and lift over 5,600 workers out of poverty.

3. A report by Raise Up NH in 2017 surveyed small business owners across New Hampshire about their opinions on increasing the minimum wage. The majority (75%) supported increasing the minimum wage to at least $12 per hour, with many citing improved employee retention and increased purchasing power for workers as potential benefits.

4. An analysis by the National Employment Law Project (NELP) in 2019 compared states with different minimum wage levels and found that states with a higher minimum wage have experienced stronger job growth than states with a lower minimum wage. This contradicts common concerns that a higher minimum wage will lead to job losses.

5. In contrast, a report commissioned by the conservative think-tank America’s Independent Party claimed that increasing New Hampshire’s minimum wage would result in substantial job losses for low-wage workers. However, critics have noted that this study used a controversial methodology that has been widely discredited.

Overall, while there is some debate over the exact effects, most studies suggest that increasing the minimum wage in New Hampshire would have positive impacts on workers, businesses, and the state’s economy.