New Hampshire Termination Laws

October 1st 2024

Like every state in the USA, New Hampshire has its own termination laws. This guide clarifies state and federal regulations, helping employers and employees handle job endings legally and fairly. Read on to grasp important facts that protect your rights and ensure compliance with legal requirements during the termination process.

This Guide Covers

Legal Considerations for Termination in New Hampshire
At-Will Employment in New Hampshire?
Lawful Termination in New Hampshire
Legal Protections During Termination in New Hampshire
Terminated Employee Benefits in New Hampshire
Layoffs in New Hampshire
Resignations in New Hampshire
Legal Cases Related to Wrongful Termination in New Hampshire

Legal Considerations for Termination in New Hampshire

When employers in New Hampshire want to terminate an employee, they must consider various factors regardless of the reason. Some of the considerations include:

  • Discrimination Laws: Employers in New Hampshire must follow strict state and federal laws when terminating employees. This includes avoiding discrimination based on age, sex, gender identity, race, and other protected traits as outlined in the New Hampshire Revised Statutes § 354-A:7. Ignoring these rules can also lead to legal disputes under various federal laws including Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA).
  • Retaliation Protections: In New Hampshire, both state and federal laws prohibit employers from firing employees as retaliation for engaging in protected activities. These activities include whistleblowing or filing discrimination complaints. The New Hampshire Whistleblower Protection Act protects employees who expose illegal activities or safety violations.
  • Final Paycheck: Under New Hampshire law RSA 275:44, employers must pay discharged employees their total wages within 72 hours of termination. If an employee quits, wages must be paid by the next regular payday unless the employee provides at least one pay period’s notice, in which case wages are due within 72 hours.
  • Employee Contracts and Agreements: Employers must review employment contracts, severance agreements, and other written agreements with terminated employees. Doing so ensures they meet all obligations and avoid breach of contract claims.
  • Documentation and Recordkeeping: Employers in New Hampshire should maintain detailed records of termination reasons, prior disciplinary actions, and all termination-related communications with the employee.

At-Will Employment in New Hampshire

What is At-Will Employment?

At-will employment allows both the employer and employee to end the employment relationship at any time, with or without cause, and without advance notice. This means an employer can fire an employee for any reason or no reason, and an employee can quit without facing legal consequences.

New Hampshire follows the at-will employment doctrine, allowing both employers and employees to end the working relationship at any time. Despite this flexibility, employers must be aware that there are exceptions to this rule.

What are the Exceptions to At-Will Employment in New Hampshire?

While the principle of at-will employment allows for terminating employment relationships at any time for any reason, several exceptions limit this flexibility in New Hampshire. These exceptions include:

  • Violation of Public Policy: Employers in New Hampshire cannot terminate employees for actions that serve the public good. For instance, firing someone for reporting safety violations or refusing to engage in illegal activity would violate public policy. Such terminations are considered wrongful under state law.
  • Implied Contracts: In New Hampshire, an implied contract can arise if an employer’s policies or handbook outline specific reasons for firing employees. If the employer fails to follow these guidelines, the employee can file a wrongful termination claim.

Employment Under Contract in New Hampshire

Employment contracts in New Hampshire can be oral or written, with written contracts preferred for their clarity and ease of enforcement. New Hampshire law does not explicitly require contracts to be in writing unless they last over one year. Written agreements help employers and employees avoid disputes by clearly defining responsibilities, termination conditions, and compensation. 

While oral agreements are valid, proving them in legal disputes can be difficult. Without a written contract, New Hampshire assumes employment is at-will, allowing either party to terminate the relationship unless specific terms say otherwise. 

Lawful Termination in New Hampshire

Legal Grounds for Termination in New Hampshire

Employers in New Hampshire must follow established laws to ensure terminations are lawful. Specific legal grounds allow for termination when done within the proper guidelines. Key legal reasons include:

  • Performance Issues: Poor performance can justify termination if the employee consistently fails to meet expectations after receiving feedback. Employers should set clear goals and provide opportunities for improvement. If the employee doesn’t improve, termination becomes a reasonable next step, as long as legal protections like discrimination laws are respected.
  • Misconduct and Violation of Company Policy: Employers in New Hampshire can terminate employees for misconduct when they violate workplace rules or harm the employer’s interests. Examples include willful disobedience, neglecting duties, theft, criminal behavior, or being under the influence of drugs or alcohol at work. Under New Hampshire law (RSA 282-A:35), employees terminated for such misconduct lose eligibility for unemployment benefits and forfeit all wages earned before the dismissal.

How Do I File a Wrongful Termination Claim in New Hampshire?

Before pursuing a wrongful termination claim, each terminated employee should carefully assess the situation, as not all terminations qualify as wrongful. Wrongfully terminated employees in New Hampshire can submit their complaint to the New Hampshire Commission for Human Rights (NHCHR) for state claims or to the Equal Employment Opportunity Commission (EEOC) for federal claims.

Claims must be filed with the NHCHR within 180 days of termination, while federal claims through the EEOC have a deadline of 300 days. Collecting important documents, such as performance reviews and termination notices, helps strengthen the case by providing clear evidence of the employment situation.

Check out our comprehensive guide to firing employees in New Hampshire for more details.

Legal Protections During Termination in New Hampshire

Federal and state laws in New Hampshire protect employees during the termination process. These laws require employers to conduct terminations in a fair and lawful manner:

  • New Hampshire Law Against Discrimination: The New Hampshire Law Against Discrimination (RSA 354-A) prevents employers from firing employees based on race, color, religion, sex, national origin, age, creed, marital status, physical or mental disability, or gender identity. This state law applies to all stages of employment, including terminations.
  • New Hampshire Payment of Wages Act: The New Hampshire Payment of Wages Act  (RSA 275:44) requires employers to pay all owed wages promptly. If an employee is terminated, the employer must pay all wages due within 72 hours of termination. If the employee resigns, the employer must pay all wages by next regular payday. 
  • New Hampshire Workers Compensation Law: The New Hampshire Workers Compensation Law (RSA 281-A) ensures that workers injured or sick due to their job recieve benefits. Employers need to follow proper procedures when firing employees who are receiving or may be eligible for workers’ compensation.
  • New Hampshire Whistleblower Protection Law: The New Hampshire Whistleblower Protection Law (RSA 275-E) protects employees from retaliation when they report illegal actions or safety violations. Employers cannot legally fire someone for whistleblowing.
  • Title VII of the Civil Rights Act of 1964: The Title VII of the Civil Rights Act is a federal law that protects workers from being terminated based on race, color, religion, sex, and national origin. Employers must comply with this law to avoid wrongful termination claims related to discrimination.
  • Age Discrimination in Employment Act: The Age Discrimination in Employment Act (ADEA) is also a federal law that protects employees aged 40 and older from being terminated because of their age.
  • Americans with Disabilities Act: The Americans with Disabilities Act (ADA) is another federal law that prevents employers from firing employees because of a disability. 
  • Family and Medical Leave Act: The Family and Medical Leave Act (FMLA) provides job-protected leave for eligible employees dealing with family or medical issues. Employers must follow FMLA rules and cannot fire workers while they are on or eligible for leave.

Terminated Employee Benefits in New Hampshire

After termination, employees in New Hampshire may qualify for various benefits, both state and federal, that provide financial support and assistance.

  • Unemployment Benefits: Terminated employees must meet specific criteria to qualify for unemployment benefits in New Hampshire. These include losing their job through no fault of their own, earning sufficient wages and actively seeking new employment.
  • Final Pay Benefits: The New Hampshire Payment of Wages Law requires employers to issue a final paycheck within 72 hours of termination. If the employee was laid off, the final paycheck is due on the next payday. Failure to comply with these regulations could result in penalties for the employer.
  • COBRA Benefits: The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees to continue their health coverage for up to 18 months after termination. Employers with 20 or more employees must offer this option. However, employees are responsible for the total cost. The employers must provide an election notice and employees have 60 days to choose COBRA coverage.
  • New Hampshire Continuation of Coverage: New Hampshire State Continuation plan allows terminated workers to maintain their health coverage for up to 39 weeks. This applies to those who lose coverage due to termination or reduction of hours.

Layoffs in New Hampshire

Layoffs occur when an employer reduces its workforce due to economic challenges, restructuring, or changes in operation. These layoffs often impact multiple employees at once, unlike individual terminations.

Employers with 100 or more employees must follow the Worker Adjustment and Retraining Notification (WARN) Act, which is a federal law. The WARN Act requires employers to give 60 days’ notice before mass layoffs or plant closures. Also, the New Hampshire law mandates that any layoff involving 25 or more employees must be reported to the New Hampshire Department of Employment Security (NHES).

Laid-off employees may qualify for unemployment benefits, depending on their circumstances. Employers must provide accurate details to the NHES to help laid-off workers access unemployment benefits smoothly.

New Hampshire offers support services through NH Works and the Rapid Response Program, helping laid-off workers with unemployment insurance, job retraining, health services, vocational rehab, and career counseling.

Resignations in New Hampshire

Resignations in New Hampshire happen when an employee decides to leave their job. Employees are free to resign at any time, but if an employment contract exists, they must follow the notice guidelines outlined in that agreement. While there is no state law requiring a specific notice period, providing notice is standard practice in most workplaces.

Voluntary Resignations

A voluntary resignation occurs when an employee chooses to leave for personal reasons, like pursuing a new job. In these cases, the decision is entirely the employee’s choice, and the employer is not required to provide severance unless outlined in an agreement.

Involuntary Resignations

An involuntary resignation happens when an employee feels forced to quit due to unbearable work conditions or after being told of an impending termination. New Hampshire law recognizes situations like constructive discharge, where employers make working conditions so intolerable that the employee has no choice but to resign. These cases may qualify as wrongful termination, giving the employee grounds to file a claim.

Legal Cases Related to Wrongful Termination in New Hampshire

1. Walmart Faces $31.2 Million Penalty for Unlawful Termination

In Maureen McPadden v. Wal-Mart Stores East, L.P., Maureen McPadden sued Walmart after her termination, claiming gender discrimination and retaliation. She argued that Walmart fired her after she reported safety issues in the pharmacy, using the loss of a pharmacy key as an excuse. McPadden noted that male employees were not penalized as harshly for similar mistakes.

A jury found Walmart guilty of gender discrimination and retaliation, violating both Title VII of the Civil Rights Act of 1964 and New Hampshire Law Against Discrimination. The jury awarded McPadden $31.2 million in damages, including back pay, front pay, compensatory damages, and punitive damages. Walmart attempted to reduce the damages, but the court only lowered the punitive damages to $300,000, due to federal limits.

Key lessons learned from the case:

  • Employers must take termination decisions seriously and ensure compliance with anti-discrimination laws to avoid costly legal battles.
  • Retaliating against employees for reporting safety concerns or other issues can escalate a termination case and increase the risk of large damages in court.

2. Freudenberg-NOK Settles for $80,000 Over Unlawful Discharge Due to Age Discrimination

In EEOC v. Freudenberg-NOK General Partnership, Freudenberg-NOK, an auto parts manufacturer, settled an age discrimination lawsuit with the U.S. Equal Employment Opportunity Commission (EEOC) for $80,000. The EEOC alleged that Freudenberg rejected Timothy Poh for a Controller position at their Bristol, NH facility because of his age.

Poh applied for the position in 2006. After interviewing him, the company informed him that, despite his qualifications, they were looking for someone “not quite so old.” Freudenberg hired a younger and less qualified candidate. The EEOC filed suit in 2007 under the Age Discrimination in Employment Act (ADEA).

Freudenberg agreed to pay $80,000 to Poh and implemented several changes, including management training on ADEA, updating anti-discrimination policies, and ensuring compliance with the Older Workers Benefit Protection Act (OWBPA). The settlement also mandated that Freudenberg stop using age as a factor in hiring.

Key lessons learned from the case:

  • Employers should avoid making termination or hiring decisions based on age to prevent costly lawsuits under the ADEA.
  • Implementing anti-discrimination training can reduce the risk of wrongful termination claims.

Learn more about New Hampshire Labor Laws in our in-depth guide.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.

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