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New Hampshire Minimum Wage for Tipped Employees

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How will the increase in the

New Hampshire minimum wage affect tipped employees who work for me?

As you may already know, the minimum wage in New Hampshire will increase on September 1, 2007 from $5.85 per hour to $6.50 per hour.  This 65 cent increase is the second in just under 6 weeks in the state. That’s because under

New Hampshire state law, when the federal minimum wage increases above the state rate, the state minimum wage is automatically increased, as well. So, on July 24, 2007, when the federal minimum wage went to $5.85 per hour, the state rate did as well. 

Tipped employees also receive an increase under the new law. For them, the minimum wage is 45% of the minimum wage. So, on September 1, 2007, the state minimum wage for tipped employees will increase from $2.63 per hour to $2.93.  That’s a 30 cent increase.

Under this system, when the federal and New Hampshire minimum wages increase to $6.55 per hour on July 24, 2008, the minimum wage for tipped employees will increase a whopping 2 cents, to $2.95 per hour. On September 1, 2008, when the

New Hampshire minimum wage increases to $7.25 per hour, the minimum hourly rate for tipped employees will go to $3.26 per hour.

All of these facts are detailed on state and minimum wage posters. Employers in the Granite

State are required by law to display both posters in a prominent location. Referring to them is a great way to clear up any confusion that you – or your employees – may have.

The state statute, RSA 279, defines tipped employees as employees of a restaurant, hotel, motel, inn or cabin who customarily and regularly receive more than $30 per month in tips from customers.

There is one important exception to this rule that you should keep in mind. In New Hampshire, as elsewhere, the employee’s tips plus wages must equal the state minimum wage. If an employee can show that his or her total earnings for a pay period were less than the state minimum wage times the number of hours worked, then the employer must pay the difference to guarantee that the employee’s earnings equal the minimum wage.