When you employ New Hampshire workers, understanding the New Hampshire employee separation process is the key to fulfilling your employer obligations.
Employee termination laws and employer obligations differ between states—but this helpful employee separation checklist and guide offers an overview of New Hampshire’s final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
New Hampshire Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in New Hampshire
New Hampshire employers have specific timelines for paying employees upon separation. Terminated employees must be paid within 72 hours, while those laid off should receive their final paycheck on the next scheduled payday. Employees who resign are generally paid on the next scheduled payday, but if they provide at least one pay period’s notice, they must be paid within 72 hours of separation. All earned wages must be paid in full.
Unused vacation pay depends on the employer’s individual policy. If the policy does not address accrued vacation upon separation, it is typically treated as wages, and must be paid out. Employers are not obligated to pay for unused vacation if they have a clear policy stating otherwise.
Final paychecks can be issued through regular payment methods or by mail, upon request. Employers who fail to pay wages may face penalties, including the unpaid wages plus either an amount equal to the unpaid wages or 10 percent of the unpaid wages for each day the payment is delayed, whichever is less.
2. Firing Employees in New Hampshire
New Hampshire is an at-will employment state, which means that both employers and employees can terminate the working relationship for any legal reason, at any time. However, when firing employees in New Hampshire, employers should be aware of notice requirements. All New Hampshire employees must be notified of their eligibility for COBRA coverage within 15 days from the date of separation.
Under New Hampshire’s WARN Act, certain employers also must provide 60 days’ notice before a plant closing or mass layoff occurs. A plant closing involves the permanent or temporary shutdown of a single employment site in New Hampshire, which affects 50 or more employees within a 30-day period. A mass layoff affects either 25 or more employees (if these layoffs constitute at least 33 percent of the workforce) or 250 or more employees. “Covered employers” are those with 100 or more employees (excluding part-time workers), or 100 or more employees who collectively work at least 3,000 hours per week.
There are several exceptions to the 60-day notice requirement. For example, if a plant closing or mass layoff is unforeseeable, notice can be provided “as soon as is practicable.”
Other exceptions include situations involving unforeseeable business circumstances, extensions of previously announced layoffs, efforts to secure financing, natural disasters, or the conclusion of temporary facilities or specific projects. Notice must be sent to affected employees, their representatives, the Commissioner of the New Hampshire Department of Labor, the New Hampshire Attorney General, and local officials.
3. Severance Agreements in New Hampshire
If you intend to execute a severance agreement in New Hampshire, you must explicitly list the claims the employee is releasing under federal and state law. In New Hampshire, employees may release claims under the New Hampshire Law Against Discrimination, New Hampshire Paycheck Fairness Act, New Hampshire’s leave laws, and New Hampshire’s minimum wage and overtime laws. Be sure that your agreement only waives claims that arose prior to the agreement’s effective date.
Employers must also remember to review applicable federal employee termination laws and guidelines. For example, the NLRB’s 2023 McLaren decision suggests a restriction in the use of non-disparagement and confidentiality provisions in severance agreements.
4. Reporting Employee Termination in New Hampshire
If you are separating from an employee with an Income Withholding for Support Order (“IWO”), report the employee’s termination to the child support agency, court, or attorney that issued the IWO. You may expedite the process by registering for online reporting with the Federal Office of Child Support Enforcement here.
Alternatively, you also may report an employee’s termination by completing the Notification of Employment Termination or Income Status section of the IWO. Then fax or mail it to the child support agency that issued it. You will need the following information:
- Employee Name
- Employee Case Identifier
- Last Known Home Address
- New Employer Address (if known)
- Date of Employee Separation
5. Withdraw Registration to do Business in New Hampshire
If separating from your last New Hampshire employee ceases your business dealings in the state, you may formally withdraw your business registration. The type of forms you’ll need to submit to the New Hampshire Secretary of State depends on your organization’s legal structure.
For-Profit Corporations must file this Application for Certificate of Withdrawal. For-Profit Corporations must also submit a clearance from the New Hampshire Department of Revenue showing that all state taxes have been paid. Non-Profit Corporations should file this Application for Certificate of Withdrawal. Finally, Limited Liability Companies (LLCs) must file this Application for Certificate of Cancellation. LLCs also need to submit a clearance from the New Hampshire Department of Revenue, showing that all state taxes have been paid.
Stay Compliant with New Hampshire Employee Separation Requirements
Keeping up with the requirements for a New Hampshire Employee Separation Agreement helps employers ensure regulatory compliance, honor employee rights, and lessen your potential legal liability.
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Looking for employee separation laws for a different state? Our interactive map makes it easy to find all employee termination requirements by state.
