New Hampshire Payroll Rules

Frequency of Payments

Unless other authorized by the New Hampshire DOL, you must pay your employees weekly and within eight (8) days after the end of the pay period.

Manner of Payments

You may pay your employees by cash, check, or electronic fund transfer. With written consent, you pay your employees via direct deposit.

You may pay your employees by payroll card if

• you provide at least one free way to withdraw up to the full amount of the employee’s balance on the card during each pay period, and
• none of the employer’s costs of the card are passed on to the employee.

Payment Upon Separation

If you discharge an employee for any reason, you must pay the employee within 72 hours of the discharge.

If the employee quits or resigns voluntarily and gives you at least one pay period’s notice, you must pay the employee within 72 hours. If they did not give you at least one pay period’s notice, you must pay them by the next regular payday.

If the employee is suspended or resigns due to a labor dispute (like a strike), you must pay them by the next regular payday.

Deductions

You can only make a deduction from an employee’s paycheck if:

• permitted to do so by state or federal law;
• the employee has consented, in writing, to the following:
  • union dues;
  • health, welfare, pension, and apprenticeship fund contributions;
  • voluntary contributions to charities;
  • housing and utilities;
  • payments into savings funds held by someone other than the company;
  • voluntary rental fees for non-required clothing;
  • voluntary cleaning of clothing;
  • the employee’s use of a vehicle;
  • medical, surgical, hospital, and other group insurance benefits, without financial advantage to the employer; or
  • required clothing not covered by the definition of a uniform;
• the deductions are for medical, surgical, or hospital care or service, without financial benefit to the employer and clearly recorded in the employer’s book;
• the employee consented in writing to one of the following deductions and you provided a written itemized list of the deductions at least once per month:
  • voluntary contributions into cafeteria plans or flexible benefit plans;
  • voluntary payments for:
    • child care fees by a licensed child care provider;
    • parking fees; or
    • pharmaceutical items, gift shop, and cafeteria items purchased at a hospital by hospital employees;
  • voluntary installment payments of legitimate loans made by the employer to the employee;
  • voluntary payments for the recovery of accidental overpayment of wages if
    • the recovery was agreed to in writing;
    • the deduction begins on a pay period following the date the recovery was agreed to in writing; and
    • the written agreement includes:
      • the date the recovery will begin and end;
      • the amount deducted (no more than 20% of the employee’s gross pay in a pay period); and
      • whether the employer can deduct any outstanding amount from the final paycheck if the employee leaves the company;
    • voluntary payments for the recovery of tuition for non-required educational costs; and
    • voluntary payments for the employee’s use of a health or fitness facility that
      • is sponsored by the employer and located within the employer’s facility; or
      • operated by a private health and fitness facility that offers discounted memberships of 50% or more to all employees.

You cannot deduct the following for an employee’s paycheck:

• cash shortages;
• breakage, damage, or loss of the employer’s property;
• dishonored or returned checks; or
• required uniforms.

Uniforms & Other Required Equipment or Tools

You cannot require an employee to purchase required uniforms. A uniform is clothing with a logo or distinctive design. You can, however, deduct the cost of required clothing that is not considered a uniform from an employee’s paycheck.

Pre-Hire Medical, Physical, & Drug Tests

You cannot require an employee to pay for the cost of any pre-hire exams.

Notice of Wage Reduction

You must notify your employees, in writing, before changing their wage rate.

Paystubs

At least once per month, you must give each employee an itemized list of deductions.

Recordkeeping

For each employee, you must keep the following records for at least four (4) years:

• hours worked,
• wages paid, and
• the employee’s classification.

You must:

• record payroll information so time records support individual pay sheets and that those pay sheets support cancelled checks or cash receipts;
• require any altered time entries be signed or initialed by the employee;
• not use an automated timeclock that can be altered by the employer without the employee’s knowledge or that does not clearly indicate that a change was made to the record;
• keep records showing the exact basis of an employee’s compensation;
• make available any records to show a relationship other than employer-employee (like an independent contractor); and
• maintain a signed copy of the written notice given to each employee regarding their
  • rate of pay,
  • frequency of pay,
  • day and place of payment,
  • specific method used to determine wages due, and
  • any policies about fringe benefits.

Notices

When you hire an employee or make a change, you must notify the employee of their

• rate of pay and salary,
• frequency of pay,
• day and place of payment, and
• the specific method used to determine wages due.

You must also provide employees with a written notice or posted notice detailing employment practices and policies regarding

• paid vacations,
• holidays,
• sick leave,
• bonuses,
• severance pay,
• personal days,
• payment of employees’ expenses,
• pension, and
• other fringe benefits.