April 12, 2025
NH is 1 of 8 states with outdated, unnecessary phantom pay requirement.
A new proposal in Concord would repeal New Hampshire’s Phantom Pay Mandate, the outdated law that requires employers to pay a minimum of two hours regardless of how much time an employee actually worked.
SB 171, as amended by fellow small business owner Rep. Brian Labrie in the House Labor Committee, would fully repeal this outdated mandate.
Speak up for small businesses across the Granite State! CLICK HERE to REPEAL THE PHANTOM PAY MANDATE!
BACKGROUND
Did you know New Hampshire is one of just eight states that requires employers to pay employees when there’s no work? The Phantom Pay Mandate requires small businesses to pay a minimum of two hours just for showing up, even if the employee only works for fifteen minutes or there’s no work at all.
The New Hampshire Department of Labor says the mandate even applies when employees log onto their computers from home to check emails for a few minutes, regardless of whether a manager or owner told them to do it.
The other states with this outdated, heavy-handed mandate are the ones you’d expect: California, Connecticut, Massachusetts, New Jersey, New York, Oregon, and Rhode Island. Meanwhile, forty-two other states trust small business owners to work out fair arrangements with their employees.
The Phantom Pay Mandate (RSA 275:43-a) is riddled with ambiguity and left up to the shifting interpretations of agency bureaucrats. Whether small businesses are in compliance depends on who’s in charge and can change from year to year. That’s no way to run a state.
TAKE ACTION
Every year, hundreds of businesses incur thousands of dollars in fines for unwittingly violating unnecessary regulations like this one.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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