Hiring Employees in New Hampshire

Classifying Your Workers Correctly

Your company must distinguish properly between employees and independent contractors under IRS common law tests and New Hampshire labor standards. You should assess behavioral control, financial control, and the overall relationship to decide if someone is truly an employee. Misclassification can trigger back wages, unpaid overtime, tax liabilities, and penalties at both federal and state level.

New Hampshire applies federal Fair Labor Standards Act (FLSA) concepts when determining exempt vs nonexempt status for overtime. You will need to review salary level, salary basis, and job duties to decide if an employee can be treated as exempt from overtime. If you are unsure, you should treat the worker as nonexempt and track hours to avoid underpayment.

• Review the IRS guidance and this misclassification resource: https://www.playroll.com/blog/employee-misclassification-guide.

• Keep written contracts, job descriptions, and time records to support your classifications.

• Reevaluate roles when duties or work arrangements change significantly.

Verify Employee Work Eligibility

For every New Hampshire hire, you must complete federal Form I‑9 within three business days of the employee’s start date. You must examine original identity and work authorization documents, such as a U.S. passport or a combination of driver’s license and Social Security card. You must retain I‑9s for at least three years after hire or one year after termination, whichever is later.

New Hampshire does not mandate E‑Verify for most private employers, but you may opt in voluntarily if it fits your compliance strategy or client requirements. If you use E‑Verify, you must follow federal rules on timing, non‑discrimination, and handling tentative nonconfirmations. Store I‑9 and any E‑Verify records separately from general personnel files to protect privacy.

Create an Employee Onboarding Process

Your onboarding process in New Hampshire should include a written offer letter outlining pay rate, pay schedule, classification, and at‑will status. You will need to collect federal Form W‑4, any direct deposit authorization, and signed acknowledgments for your handbook, policies, and required notices. New hires should also receive information on workers’ compensation coverage and unemployment benefits.

Make sure you set up each employee in your HR or payroll system before the first payday so taxes, benefits, and timekeeping are accurate from day one. Clear documentation of compensation, hours, and benefits will give you better visibility into your true hiring costs in New Hampshire.

Pay Frequency & Methods

New Hampshire generally requires you to pay employees at least weekly or biweekly, and no more than eight days may pass between paydays. If you terminate an employee, you must pay all wages due within 72 hours if the employee is fired, or by the next regular payday if the employee resigns. Failure to pay on time can lead to wage claims, liquidated damages, and civil penalties from the New Hampshire Department of Labor.

Payment Methods (How You Can Pay)

You can choose from several payment methods in New Hampshire, but you must always ensure employees receive full wages on time and a clear wage statement. Your company should document the chosen method in your policies and obtain any required consents in writing.

• Payroll Check: You may pay by check as long as employees can access full wages at face value without fees and receive an itemized pay stub.
• Cash: You may pay wages in cash, but you must provide a written wage statement showing hours, rates, deductions, and net pay.
• Direct Deposit (EFT): You can use direct deposit only if the employee voluntarily authorizes it in writing and can choose the financial institution.
• Paycards: You may use paycards if employees have fee‑free access to full wages, clear disclosures, and at least one free withdrawal per pay period.
• Outsourced Payroll: You can outsource payroll to a provider, but your company remains responsible for compliance with New Hampshire wage and hour laws.

When you hire in New Hampshire, you must handle federal payroll taxes and state unemployment insurance, even though the state does not tax wage income. You will need to register with the appropriate agencies, withhold and remit federal taxes, and fund employer contributions on time.

Employer Tax Contributions

Your company must register with the New Hampshire Employment Security agency to pay state unemployment insurance (SUI). You will also owe federal unemployment tax (FUTA) and must match Social Security and Medicare contributions under FICA. Rates and wage bases can change, so you should verify them each year before running payroll.

Employee Payroll Tax Contributions

For New Hampshire employees, you must withhold federal income tax, the employee share of Social Security and Medicare, and any court‑ordered or benefit‑related deductions. Because New Hampshire does not tax wage income, there is no state income tax withholding on regular salaries and hourly pay. You must still report wages accurately and provide Form W‑2 each year.

Minimum Wage in New Hampshire

New Hampshire’s minimum wage is tied to the federal rate of $7.25 per hour, so you must pay at least this amount to nonexempt employees. Tipped employees may be paid a lower cash wage if their tips bring them up to at least $7.25 per hour, and you must track tips carefully. Local governments in New Hampshire do not set higher minimum wages, but your company can choose to pay more to stay competitive.

Working Hours in New Hampshire

New Hampshire generally follows federal rules on working hours, with no daily maximum for adults but strict overtime and recordkeeping requirements. You must provide a 30‑minute unpaid meal break after five consecutive hours worked, unless the employee can eat while working and is paid. For minors, you must follow additional limits on daily and weekly hours and required rest periods.

Overtime in New Hampshire

New Hampshire uses the federal FLSA standard for overtime, requiring you to pay at least 1.5 times the regular rate for all hours worked over 40 in a workweek by nonexempt employees. You must include most bonuses, commissions, and different hourly rates when calculating the regular rate. State law does not require overtime for work on weekends or holidays unless total hours exceed 40 in the workweek or your contract promises it.

In New Hampshire, you must follow federal benefit rules such as the Affordable Care Act (ACA) if you average 50 or more full‑time employees. While the state does not mandate many private‑sector benefits beyond workers’ compensation and unemployment insurance, offering health coverage, retirement plans, and paid leave can help you compete for talent. You should document eligibility, waiting periods, and employer contributions in clear written policies.

Mandatory Leave Policies in New Hampshire

Paid Time Off in New Hampshire

New Hampshire does not require private employers to provide paid vacation or general PTO, so you can design your own policy. If your company offers PTO, you must follow your written policy on accrual, carryover, and payout at separation. State law generally treats earned vacation as wages if your policy promises payment, so you should state clearly whether unused PTO is paid out when employment ends.

Maternity & Paternity Leave in New Hampshire

New Hampshire does not have a separate state maternity or paternity leave statute for most private employers, but federal FMLA may provide up to 12 weeks of unpaid, job‑protected leave for eligible employees. You may choose to offer paid parental leave or short‑term disability benefits to cover a portion of wages during childbirth recovery and bonding. Your company should apply eligibility and notice rules consistently to avoid discrimination claims.

Sick Leave in New Hampshire

New Hampshire does not mandate paid sick leave for private employers, so whether sick time is paid or unpaid depends on your internal policy. If you provide paid sick leave or PTO that can be used for illness, you must honor the terms of your policy and communicate any caps or documentation requirements. Many employers in the state offer at least a few paid sick days per year to remain competitive and support workforce health.

Military Leave in New Hampshire

Employees in New Hampshire who serve in the armed forces, reserves, or National Guard are protected by federal USERRA and state law. You must allow unpaid leave for military training, drills, and active duty, and you generally must reinstate the employee to the same or an equivalent position upon timely return. You cannot retaliate against employees for taking military leave or for their service obligations.

Jury Duty in New Hampshire

Your company must allow employees to take time off to serve on a jury in New Hampshire courts. State law prohibits you from threatening, coercing, or penalizing an employee because of jury service, though you are not required to pay wages during that time unless your policy or contract says otherwise. You may request proof of jury service, such as a summons or attendance slip, for your records.

Voting Leave in New Hampshire

New Hampshire law requires you to give employees reasonable time off to vote if they cannot vote outside their working hours. The statute does not require this time to be paid, so you may treat it as unpaid leave unless your policy states otherwise. You should create a simple procedure for employees to request voting leave in advance, especially during statewide and federal elections.

Bereavement Leave in New Hampshire

New Hampshire does not mandate bereavement leave, so any time off for a death in the family is governed by your company policy. Many employers offer a few days of paid or unpaid bereavement leave to support employees after a close family member’s death. Whatever you decide, you should define eligibility, duration, and pay status clearly and apply the policy consistently.

Termination Process

New Hampshire is an at‑will employment state, so you may terminate employment for any lawful reason, provided you do not violate discrimination, retaliation, or contract laws. You should document performance issues, policy violations, and prior warnings to reduce the risk of wrongful termination claims. During separation, provide a final wage statement, information on benefits continuation, and any required notices.

Notice Period

New Hampshire law does not require you to give advance notice of termination in most private‑sector situations, unless a contract or collective bargaining agreement specifies otherwise. However, you must comply with federal WARN Act requirements if you conduct a large layoff or plant closing that meets federal thresholds. Providing some notice or severance voluntarily can ease transitions and protect your employer brand.

Severance

Severance pay is not required by New Hampshire law, but you may choose to offer it under a written policy or individual agreement. If you provide severance, you must follow your stated formula and payment timing, and you may request a signed release of claims where legally appropriate. Make sure any severance plan is applied consistently to avoid discrimination concerns.