What is the penalty for not paying employees the minimum wage?
The penalty for not paying employees the minimum wage in New Hampshire is severe and can result in heavy fines and criminal charges. Employers must pay all employees at least the minimum wage of $7.25 an hour (as of 2021). Failing to do so can result in an employer having to pay up to twice the amount of wages that were unpaid, due to minimum wage law violations. In addition, employers may be subject to civil action by the state, with fines reaching up to $15,000 dollars per worker. Employers who willfully violate wage and hour law in New Hampshire can also be charged with a misdemeanor of the second-degree, punishable by fines of up to $1000 and up to one year in prison. If the violation is considered “willful and flagrant,” the employer can be fined up to $10,000 and sent to prison for up to five years. Employers must also be aware that failing to pay their employees the minimum wage could lead to litigation and bad publicity. Employees often turn to court or the Department of Labor to try to recover unpaid wages. Even if an employer is found not guilty of a crime, the court of public opinion may view them in a poor light, making it difficult to maintain a positive reputation. Overall, violations of minimum wage law in New Hampshire can have serious consequences for employers. Rather than risk fines or criminal charges, employers should ensure that they are paying all employees the required minimum wage.
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