What employers are getting wrong, and how to fix it before it becomes a claim
New Hampshire’s employment law landscape heading into 2026 may not be dramatically different from last year, but the real risks lie in implementation missteps. From the initial setting of wages, to calculating and distributing wages, employers will likely find a specific statute and/or labor regulation governing the transaction. Failure to follow these detailed wage and hour laws can result in significant back wages and other penalties being imposed by the state or federal Department of Labor following an audit. Fortunately, however, this area of employment law is relatively easy to master, once you are familiar with the basics.
Notice compliance
One of the most common pitfalls for employers in New Hampshire is misunderstanding the wage and hour notice requirements under RSA 275 and the related New Hampshire Department of Labor Administrative Rules.
At the time of hire, employers must notify employees in writing of their rate of pay and the day and place of payment. This notice is traditionally delivered to employees by way of an offer letter or some sort of “New Hire Rate of Pay” form. (A sample form is available from the New Hampshire Department of Labor website.) What surprises most employers, however, is that Lab. 803.03(f)(6) also requires employers to request and obtain their employees’ signatures on this written notification of wages, and employers must keep a copy of the signed written notification of wages on file. Further, employers must notify employees in writing during the course of employment of any changes to wages or day of pay prior to such changes taking effect, and the employer must obtain the employee’s signature on this subsequent notification as well. (See RSA 275:49; Lab. 803.03.)
Employers are further required to notify employees in writing, or through a posted notice maintained in a place accessible to employees, of:
• employment practices and policies with regard to vacation pay, sick leave and other fringe benefits.
• deductions made from the employee’s payroll check, for each period such deductions are made.
• information regarding the deductions allowed from wage payments under state law. (RSA 275:49; Lab. 803.03.)
Policies regarding vacation and sick leave should inform employees whether or not the employer will “cash out” unused time at year end or at the end of employment, and if so, under what terms. Again, if any changes are made to vacation pay, sick leave and other fringe benefits during the course of employment (all of which are considered “wages” under New Hampshire law), employers must request and obtain their employees’ signatures on the written notification of the change, and must keep a copy of the signed form on file. (Lab. 803.03.) Importantly, notification by way of pay stub alone is not sufficient, and, these requirements apply to both increases and decreases in pay.
Two-hour minimum (reporting pay)
Another frequently overlooked obligation is New Hampshire’s two-hour minimum reporting pay requirement. Under RSA 275:43-a, non-exempt employees who report to work but are sent home early must generally be paid for at least two hours. Weather-related closures, client cancellations or operational slowdown days can trigger this rule. Employers should also note that the New Hampshire Department of Labor currently applies this law to remote-based employees. Consequently, employees who “report to work” at an employer’s request from a home office may likewise have a right to two hours of pay, depending on the circumstances.
Salaried vs. hourly employees
Misclassification of employees as exempt from overtime remains a significant source of compliance exposure. The position’s job duties — not the titles or label such as “salaried” — determine whether an employee qualifies for an overtime exemption.
Employers, particularly in nonprofits, health care and small businesses, unintentionally misapply exempt classifications to roles such as administrative staff, office managers, executive assistants, program coordinators or hybrid jobs that involve significant non-exempt tasks. Over time, as organizational needs evolve and employees take on broader responsibilities, job duties can drift outside of an exemption’s scope.
Best practice is to periodically review job descriptions and actual job duties to ensure continued compliance with exemption criteria, particularly following any significant restructuring or job redesigns.
Peg O’Brien is chair of McLane Middleton’s Employment Law Practice Group. She can be reached at margaret.o’brien@mclane.com.
