A legislative proposal in Concord, New Hampshire, aims to repeal the state’s Phantom Pay Mandate. This law currently requires employers to pay a minimum of two hours’ wages, regardless of the actual time worked by an employee. The proposal was amended by Representative Brian Labrie, a small business owner, in the House Labor Committee, and it seeks to fully eliminate this mandate.
The Phantom Pay Mandate places New Hampshire among eight states with such a regulation, alongside California, Connecticut, Massachusetts, New Jersey, New York, Oregon, and Rhode Island. The mandate obligates small businesses to remunerate employees for at least two hours on their arrival at work, even if they end up working for only a short duration or there’s no work at all.
This law also extends to situations where employees log onto their computers from home, such as to check emails briefly, irrespective of direct instructions from management. The New Hampshire Department of Labor underscores this as a regulatory requirement.
Forty-two other states allow small business owners to negotiate fair compensation arrangements with their staff without similar regulatory constraints. Critics argue that the mandate is ambiguous, often subject to varying interpretations by agency officials, which introduces uncertainty for businesses. Compliance with this regulation can depend on who is in charge, leading to potential inconsistencies from year to year.
There is concern among business owners regarding the financial penalties incurred for inadvertent breaches of this mandate. Many see it as an unnecessary and burdensome regulation. The proposal seeks support from the community to overturn this requirement.
