HB 726 would raise New Hampshire’s state minimum hourly rate in stages over several years. The bill sets the minimum wage at $10.00 per hour beginning September 1, 2025, then increases it to $12.50 on January 1, 2026, $14.00 on January 1, 2027, and $15.00 on January 1, 2028. It also updates the state’s minimum wage law so that employers must pay the higher of the federal minimum wage or the state rate.
The bill also changes the base pay requirement for tipped employees in certain hospitality businesses, including restaurants, hotels, motels, inns, cabins, and ballrooms. Under the introduced version, tipped workers would receive a base wage equal to 50% of the applicable minimum hourly rate, up from 45%, with a guarantee that the employer must make up any shortfall if total wages and tips do not reach the minimum hourly rate for all hours worked. The bill includes a contingent version that would take effect if the federal minimum wage or New Hampshire minimum wage reaches $15 per hour first, and the act is otherwise scheduled to take effect July 1, 2025.
Impact
HB 726 would amend RSA 279:21, New Hampshire’s minimum wage statute, by establishing a new multi-year state wage floor and revising the tipped-employee base rate. The practical effect would be to increase labor costs for employers subject to the state minimum wage, especially in lower-wage sectors, while increasing earnings for minimum-wage workers and some tipped employees. The bill would also interact with federal wage law by preserving the rule that the higher of the federal or state minimum applies.
Sentiment
The available vote history suggests the bill was controversial and faced substantial opposition. A motion to table the bill passed 197-159, indicating that a majority of members preferred to set it aside rather than advance it at that stage. No committee transcript is available here, but the vote margin shows a divided chamber and a lack of broad consensus on the wage increase.
Contention
The main point of contention is the size and pace of the minimum wage increase, with supporters likely viewing it as a needed wage boost and opponents likely concerned about employer costs, especially for small businesses and hospitality employers. Another disputed issue is the tipped wage change, since increasing the required base pay for tipped workers can significantly affect restaurant and hotel payroll structures. The contingent version also suggests lawmakers were considering whether to tie the state change to future federal action, which may have been intended as a compromise.