By Nicole D. Spaur, Esq., Preti Flaherty

Each year the legislature debates bills dealing with various aspects of the relationship between an employer and employee.  This year is no different and employers should keep a look out for possible changes.

Once again, the legislature is debating a bill relating to the state minimum wage.  Currently R.S.A. 279:21 requires employers to pay either $5.15 per hour or the federal minimum wage, whichever is higher.  The state and federal minimum wage is presently the same, $5.15.  As originally drafted, HB 665-FN, sought to increase the minimum wage by setting the state minimum wage after July 1, 2005, at $5.65 an hour; after July 1, 2006, at $6.15 an hour; and after July 1, 2007, at $6.65 an hour.  The House passed this bill after amending it to raise the minimum wage to $5.65 as of September 1, 2005, and $6.15 as of September 1, 2006, and by not setting a change for 2007.  To the extent federal law sets a minimum wage higher than New Hampshire, employers will continue to be required to pay the higher of the two.  HB 655-FN will now be debated in the Senate. 

Whether a person is an employee or an independent contractor often is a topic of heavy debate in New Hampshire.  In response to this debate, House Bill 246 seeks to establish a committee to study issues relating to the misclassification of employees as independent contractors.  If enacted, a committee of three members of the House of Representatives and three members of the Senate will investigate the possible social and economic ramifications of such misclassification, including the impact on workers’ compensation and unemployment compensation coverage, as well as the impact on state and federal revenue through the avoidance of tax obligations.  HB 246 has passed the House and has been introduced in the Senate.

The House has also already considered two bills that would impact the state law against employment discrimination.  First, House Bill 561 seeks to amend RSA 354-A:7, to clarify that (1) an employer must make reasonable accommodations to the known physical or mental limitations of an otherwise qualified employee or applicant with a disability unless the accommodation would impose an undue hardship on the operation of the employer’s business; and (2) an employer cannot deny employment opportunities to a job applicant or employee who is an otherwise qualified individual with a disability on the basis that the employer would need to make a reasonable accommodation.  Second, House Bill 506 seeks to expand the definition of “employer” for purposes of the state law against discrimination.  If enacted, the statute’s definition of “employer” would no longer exclude non-profit charitable and educational organizations, assuming such organizations employed at least six persons.  Although the House passed HB 561, the House Labor committee has retained HB 506.

Despite that the bill has already failed in the House, employers should note that House Bill 384 sought to prohibit employers with 25 or more employees, absent a contract or collective bargaining agreement to the contrary, from doing the following: (1) requiring an employee to work overtime as a condition of employment; (2) making an employee’s participation in overtime work a basis for job performance evaluation; (3) asking an employee to work overtime without giving the employee 72 hours’ advance written notice; and (4) penalizing an employee who declines to work overtime hours. 

In addition to the above, the legislature is considering several other bills that may affect New Hampshire employers, including bills relating to workers’ compensation, unemployment compensation, and small group health insurance.  Keeping abreast of these bills can ensure employers are prepared for possible changes that may impact their rights and obligations when dealing with their employees.