New Hampshire Minimum Wage 2024

Small business owners in New Hampshire recognize the critical role of a strong workforce in their operations. However, they must also consider the financial aspects of employment, such as understanding the minimum wage and its impact on various industries within the state. We have compiled a comprehensive guide detailing essential New Hampshire minimum wage information to assist these business owners. This guide clarifies and supports businesses as they navigate employment costs and planning.

New Hampshire Minimum Wage Rate in 2024?

New Hampshire’s minimum wage is $7.25 per hour, aligning with the federal minimum wage. Since 2009, this rate has not been adjusted, resulting in diminished purchasing power over the years, and remains the only state in the area where the minimum wage for most workers is less than $13.67 per hour. Specifically, the purchasing power of the minimum wage was approximately 10% higher in 2009 than it is currently.

The persistently low minimum wage presents several challenges. It complicates the financial stability of low-wage earners and contributes to ongoing poverty and economic disparity within the state. While there are ongoing discussions and proposals to raise the minimum wage in New Hampshire, these efforts face resistance. Some business owners express concerns that increasing the wage could reduce employment opportunities.

Tipped Minimum Wage Requirements

A tipped employee in sectors like restaurants, hotels, motels, inns, or cabins who regularly receives over $30 monthly in tips directly from customers is entitled to a base wage from their employer. This base wage must be at least 45 percent of the prevailing minimum wage.

The minimum wage for tipped employees is currently $3.27 per hour, 45 percent of the standard minimum wage. This wage is the basic pay for employees like bartenders and servers who receive tips. Once their tips are included, these tipped employees are ensured to make at least the minimum wage.

What Are the Overtime Minimum Wage Regulations in New Hampshire?

In New Hampshire, employees not exempt from overtime regulations receive overtime pay at 1.5 times their regular hourly wage for hours worked over 40 in a week. This complies with state and federal laws. The state has no daily overtime limit; overtime is only based on the total weekly hours.

Exempt employees, such as those in administrative, executive, or professional roles, are subject to the Fair Labor Standards Act (FLSA), which requires a minimum salary of $684 per week or $35,568 per year. Employees earning less than this may qualify for overtime unless they fall under specific exemption criteria.

Under state or federal laws, certain job categories, including agricultural workers, independent contractors, and outside salespersons, are not eligible for overtime.

Minimum Wage Exceptions in New Hampshire

In New Hampshire, all employers must accurately record employees’ daily work hours, except those exempted under 29 U.S.C. section 213(a) of the Fair Labor Standards Act.

The state follows the federal minimum wage rate of $7.25 per hour, though exceptions exist. Specifically, student learners and trainees can be paid below the standard minimum wage under certain conditions. High school and post-secondary program students, categorized as student learners, may receive less than the minimum wage or sometimes no wage if they meet specific criteria. Similarly, trainees with less than six months of experience may be paid below minimum wage, subject to approval from the New Hampshire Department of Labor, provided their employment does not replace regular employees.

Additionally, some occupations are fully exempt from minimum wage laws. These exempt positions include household labor, domestic labor, farm labor, outside sales representatives, newspaper carriers, golf caddies, non-professional ski patrol members, and staff at summer camps for minors.

Child Labor Requirements to Follow

Minors aged 14 and 15 are limited in their working hours. During the school year, they can work up to 3 hours on school days and no more than 23 hours a week, from 7 a.m. to 7 p.m., excluding school hours. Over the summer or when public school is not in session, their work hours can increase to 8 hours per day and up to 48 hours per week, with a limit of 6 days per week and a stretch of no more than six consecutive days. Their permissible work hours extend from June 1 to Labor Day to 9 p.m.

For minors aged 16 and 17, the rules change slightly. During the school term, they are prohibited from working during school hours and can work up to 30 hours per week. They can work up to 8 hours at night and no more than six consecutive days. For manufacturing jobs, shifts are capped at 10 hours. They are allowed to work up to 10 ¼ hours per day in manual and mechanical roles. When school is out, they can work up to 8 hours per day and 48 hours per week, or 54 hours if they are not enrolled in school, still within the constraints of 6 consecutive days and nighttime work limits.

Preparing Your New Hampshire Small Business for Potential Minimum Wage Changes

As a small business owner in New Hampshire, it’s essential to prepare for possible changes to the state’s minimum wage, which has stayed at $7.25 per hour since 2009. While there have been no changes for over a decade, new legislation could modify this. Being ready can help your business adjust effectively. Here are some steps to consider for 2024 and beyond:

• Stay Informed and Compliant: Monitor legislative developments in New Hampshire to stay updated on any proposed changes to the minimum wage. Being well-informed allows you to adjust your business strategies promptly rather than responding after the fact. Also, comply with current wage and hour laws to avoid penalties.
• Evaluate Your Staffing Needs: Examine your hourly, weekly, and monthly sales patterns to see if your current staffing levels are sufficient. If a wage increase seems probable, think about its potential effects on your hiring plans. For instance, hiring part-time or seasonal employees during busy periods might be more economical than keeping a larger full-time staff throughout the year.
• Consider the Impact on Your Budget: A rise in the minimum wage will likely increase labor costs. Prepare your budget by identifying where you can reduce expenses or enhance efficiency. Reviewing your pricing strategy might also be necessary to ensure your business remains profitable with new wage conditions.
• Upgrade Your Technology: Automating complex and labor-intensive management tasks, such as payroll, can free up your time to focus on strategic decisions, like staffing and business expansion. By implementing efficient payroll systems, you can reduce errors, ensure compliance with any new wage regulations, and handle administrative challenges more effectively.
• Hire the Best and Focus on Retention: With wage increases possible, hiring the right people is even more crucial. Spend time on recruiting to ensure you bring on employees who will fit well with your business. Once you have the right team, concentrate on retention by providing opportunities for growth, professional development, and a positive work environment. While competitive wages matter, these factors often significantly affect job satisfaction.

Conclusion

Understanding New Hampshire’s minimum wage laws is crucial for small business owners as they navigate the complexities of employment costs. The state’s minimum wage, which has remained unchanged since 2009, presents challenges for employers and employees, particularly regarding purchasing power and economic stability. As the possibility of wage increases looms, business owners must stay informed and proactive.

By carefully evaluating staffing needs, budgeting for potential changes, and focusing on employee retention, businesses can better position themselves for future adjustments. Preparing now ensures businesses remain competitive and compliant in an evolving economic landscape.

Frequently Asked Questions