Guide to Firing Employees in New Hampshire for Employers

One of the most challenging tasks that employers may face is the termination of an employee. The process of firing an employee requires careful consideration, adherence to legal requirements, and sensitivity to its impact on both employee and employer. This firing guide is a comprehensive resource for employers in New Hampshire facing the difficult task of terminating an employee.

From knowing the best practices of termination to understanding the legal requirements, this guide aims to provide employers with the knowledge necessary to conduct terminations lawfully, ethically, and effectively.

This firing guide covers:

What Does Firing an Employee in New Hampshire Involve?
Differentiating between Firing, Layoffs, and Resignations in New Hampshire
Why Does a Well-Planned Termination Process Matter in New Hampshire?
Termination Laws in New Hampshire: What You Need to Know
Legal Implications of Wrongful Termination in New Hampshire
Required Documents for Employers and Terminated Employees in New Hampshire
Who is Responsible for Firing Employees in New Hampshire?
How Long is the Termination Process in New Hampshire?
How Can You Prepare for Termination in New Hampshire?
Steps for a Respectful Termination Process in New Hampshire
Post-Termination: What Happens Next After Terminating an Employee in New Hampshire?
Legal Considerations During Termination in New Hampshire
Bonus: Best Practices for Reducing Litigation Risks in New Hampshire

What Does Firing an Employee in New Hampshire Involve?

Firing an employee in New Hampshire involves notifying the employee of the termination decision, providing a clear explanation for the termination, and ensuring compliance with state and federal laws. Employers should conduct terminations with professionalism, sensitivity, and adherence to legal requirements to minimize the risk of legal disputes and maintain positive relationships with both departing employees and remaining staff.

Differentiating between Firing, Layoffs, and Resignations in New Hampshire

In New Hampshire, there are distinct legal and practical differences between firing, layoffs, and resignations. Let’s differentiate between each:

Firing in New Hampshire

Firing or terminating an employee occurs when the employer ends the employment relationship with an employee. Termination is usually a result of poor employee performance, misconduct, or violation of company policies.

In New Hampshire, employment is considered at-will, meaning that employers can terminate employees for any reason or no reason at all and at any time. However, there may be exceptions to at-will employment, such as when termination violates public policy or breaches an employment contract.

Layoffs in New Hampshire

Layoffs occur when an employer needs to reduce its workforce due to economic hardships, organizational restructuring, or changes in business operations. Unlike firing, layoffs affect multiple employees within an organization.

In New Hampshire, employers with 100 or more employees are required to provide advance notice of layoffs under the federal Worker Adjustment and Retraining Notification (WARN) Act.

Employees who are laid off may be eligible for unemployment benefits, depending on the circumstances of their separation from employment. Employers should provide accurate information to the New Hampshire Department of Employment Security to assist terminated employees with unemployment benefits.

Resignations in New Hampshire

Resignations occur when an employee voluntarily chooses to end their employment with an employer. Unlike firing or layoffs, resignations are initiated by the employee rather than the employer.

In New Hampshire, employees are free to resign from their position at any time, given that they provide appropriate notice to their employer as outlined in company policies or employment contract.

Why Does a Well-Planned Termination Process Matter in New Hampshire?

A well-planned termination process matters in New Hampshire for several reasons:

  • Legal Compliance: A well-planned termination process ensures adherence to state and federal laws governing termination, including anti-discrimination statutes and requirements related to final pay and unemployment benefits.
  • Risk Mitigation: Minimizes the risk of legal disputes, wrongful termination claims, and reputational damage to the employer.
  • Professionalism and Respect: Demonstrates fairness, transparency, and sensitivity toward the affected employee, fostering positive relationships and maintaining morale among remaining staff.
  • Protection of Business Interests: Safeguards the employer’s business interests and preserves its reputation in the community by upholding ethical standards and promoting a positive work environment.
  • Efficiency and Productivity: Streamlines the termination process, allowing the organization to focus on its core operations and maintain productivity levels during times of transition.

Termination Laws in New Hampshire: What You Need to Know

In New Hampshire, several state and federal employment laws govern the termination process. Here are some key laws, along with brief descriptions:

  • Title VII of the Civil Rights Act of 1964: Title VII of the Civil Rights Act prohibits employers from terminating employees based on race, color, religion, sex, or national origin. This law applies to all aspects of employment, including hiring, promotion, and termination. If an employee is fired due to any of these protected characteristics, it is considered unlawful discrimination.
  • Age in Discrimination in Employment Act (ADEA): The ADEA protects employees aged 40 and older from being terminated due to their age. Employers cannot use age as a factor in termination decisions, and doing so could result in legal action for age discrimination.
  • Americans with Disabilities Act (ADA): The ADA prevents employers from terminating employees due to a disability as long as the employee can perform the essential functions of the job with or without reasonable accommodation. Terminating an employee based on a disability could lead to claims of wrongful termination under the ADA.
  • Family and Medical Leave Act (FMLA): FMLA provides eligible employees with job-protected leave for family and medical reasons. Employers must follow FMLA regulations when terminating employees who are on FMLA leave or who may be eligible for FMLA.
  • Consolidated Omnibus Budget Reconciliation Act (COBRA): COBRA provides employees with the right to continue their group health insurance coverage for a limited time after termination of employment. Employers must provide COBRA notices and comply with COBRA requirements when terminating employees who are eligible for continued health insurance coverage.
  • New Hampshire Law Against Discrimination: The New Hampshire Law Against Discrimination prohibits employment discrimination based on race, color, religion, sex, national origin, age, marital status, physical or mental disability, or sexual orientation. It covers all aspects of employment, including hiring, promotions, compensation, and firing.
  • New Hampshire Payment of Wages Act: The New Hampshire Payment of Wages Act mandates that all employers pay owed wages to an employee within 72 hours of termination. If an employee resigns, the payment is due by the next regular payday or within 72 hours if proper notice is given. Employers who fail to comply with this law may face liquidated damages of 10% of the unpaid wages for each day delayed. In addition, employers are responsible for paying any outstanding contributions to health or pension funds at the time of termination.
  • New Hampshire Workers Compensation Law: The New Hampshire Workers’ Compensation Law provides benefits to employees who suffer work-related injuries or illnesses. Employers must follow specific procedures when terminating an employee who is receiving or may be eligible for worker’s compensation or injured employee benefits.
  • New Hampshire Whistleblower Protection Law: The New Hampshire Whistleblower Protection Law protects employees from retaliation for reporting illegal activities, health and safety violations, or other wrongdoing by their employer. Employers must not terminate employees in retaliation for whistleblowing activities.

In New Hampshire, wrongful termination occurs when an employer unlawfully fires an employee in violation of state or federal laws. The legal implications may include:

  • Violation of Anti-Discrimination Laws: Wrongful termination may involve discrimination based on protected characteristics such as race, color, region, sex, national origin, age, disability, and other factors prohibited by anti-discrimination statutes. Employees who believe they were terminated for discriminatory reasons can file complaints with the New Hampshire Commission for Human Rights or the Equal Employment Opportunity Commission (EEOC).
  • Retaliation Claims: Wrongful termination may also involve retaliation against an employee for engaging in protected activities. Retaliation claims can lead to legal proceedings and potential damages for the affected employee.
  • Breach of Employment Contracts: If an employee has an employment contract that specifies terms of employment, including grounds for termination. Employees may pursue legal action for breach of contract and seek legal remedies.
  • Violation of Public Policy: Wrongful termination may occur if an employer fires an employee for reasons that violate public policy, such as refusing to engage in illegal activities or exercising statutory rights.
  • Unemployment Benefits Disputes: Employees who are wrongfully terminated may be eligible for unemployment benefits. If an employer disputes an employee’s claim for unemployment benefits, it may lead to administrative hearings and potential legal proceedings to determine eligibility.
  • Damages and Remedies: In cases of wrongful termination, employees may seek various remedies, including reinstatement to their former position, back pay, front pay, compensatory damages for emotional distress or harm to reputation, punitive damages, and attorney’s fees and legal costs.
  • Reputational Damage: Wrongful termination lawsuits can damage an employer’s reputation in the community and among potential employees, customers, and business partners.

Required Documents for Employers and Terminated Employees in New Hampshire

In New Hampshire, both employers and terminated employees have certain document-related requirements to fulfill.

Employers’ Requirements

  • Termination Letter or Notice: Employers should provide a termination letter or notice to the employee confirming the termination of employment. This letter should include the date of termination, the reason for termination, any severance pay or benefits, and information about final pay and any continuation of benefits.
  • Final Paycheck: Employers are required to provide terminated employees with their final paycheck promptly, either on their last day of work or the next regular payday. The final paycheck should include all wages owed for hours worked including all accrued but unused vacation or paid time off.
  • COBRA Notice: If the terminated employee was covered under the employer’s group health insurance plan, the employer must provide COBRA notice explaining the employee’s rights to continue their health insurance coverage through COBRA for a limited period after termination.
  • Unemployment Compensation Information: Employers must provide accurate information to the New Hampshire Department of Employment Security regarding the reasons for termination to assist in determining the terminated employee’s eligibility for unemployment benefits.
  • Employment Records: Employers should maintain accurate and complete employment records including documentation related to the termination of employment.

Terminated Employees’ Requirements

  • Severance Agreement: If the terminated employee and employer have negotiated a severance agreement, the employee may be required to sign the agreement to receive severance pay or benefits. The severance agreement outlines the terms and conditions of the separation agreement, including benefits continuation and non-disclosure agreements.
  • COBRA Election Form: If the terminated employee wishes to continue their health insurance coverage through COBRA, they must complete and return the COBRA election form to the employer within the specified timeframe. This form indicates the employee’s decision to elect COBRA coverage and provides information about premium payments.
  • Unemployment Benefits Application: Terminated employees who wish to apply for unemployment benefits must file a claim with the New Hampshire Department of Employment Security. The application involves completing a form and providing information about their employment history and the reasons for their termination.
  • Documentation of Termination: Terminated employees may request documentation of their termination, including final paycheck stub, termination notice, and any other relevant documentation related to termination. This documentation can be useful for verifying the terms of their separation from employment and for potential future employment opportunities.
  • Health Insurance Coverage Options: Terminated employees should review their options for obtaining health insurance coverage after termination, including COBRA continuation coverage or individual health insurance plans.

Who is Responsible for Terminating in New Hampshire?

In New Hampshire, the responsibility for firing employees is shared among Human Resources (HR), managers, and legal counsel. Here is an overview of their roles and responsibilities during the termination process:

Role and Responsibilities of Human Resources 

  • Ensures that the termination is conducted in compliance with company policies and procedures, and applicable state and federal laws.
  • Oversees the documentation of the termination process. The documentation must include the reason for termination, warnings, disciplinary actions, and the final settlement agreement.
  • Handles communication with the terminated employee, including the delivery of termination notices and any necessary paperwork related to benefits, final pay, and unemployment compensation.
  • Provides guidance and support to managers throughout the termination process, ensuring that it is conducted professionally and respectfully.

Role and Responsibilities of Managers

  • Initiates the termination process. Managers identify performance issues, misconduct, or other reasons for termination and communicate these concerns to HR.
  • Conducts any necessary performance evaluations, disciplinary actions, or corrective measures before termination, as outlined in company policies.
  • Delivers the news to the employee, explaining the reasons for termination and providing relevant documentation.

Role and Responsibilities of Legal Counsel

  • Ensures that terminations are conducted in compliance with applicable laws and regulations.
  • Guides HR and managers on legal issues related to termination.
  • Review termination decisions and documentation to identify any potential legal risks and advise on strategies to minimize liability.

How Long is the Termination Process in New Hampshire?

The duration of the termination process in New Hampshire can vary depending on the steps involved:

  • Employee Evaluation and Decision-Making: Employers may spend some time evaluating the reasons for termination, gathering relevant information, and determining the appropriate course of action. This phase can vary depending on the situation and the employer’s decision-making process.
  • Communication with the Employee: Once the decision to terminate has been made, employers must communicate this decision to the affected employee. This step involves scheduling a termination meeting, during which the employer informs the employee of the decision and provides any necessary information or documentation.
  • Transition Planning: Employers may need to develop a plan for transitioning the employee out of the organization, which may include finalizing outstanding work, transferring responsibilities to other employees, collecting company property, and arranging for the return of company-owned items.
  • Benefits and Final Pay: Employers must ensure that the employee receives their final paycheck promptly and provide information about the continuation of benefits.
  • Documentation and Recordkeeping: Throughout the termination process, employers should maintain accurate documentation of the reasons for termination, any discussions or meetings with the employee, and any actions taken as part of the termination process. This documentation is important for legal compliance and potential legal reference.

How Can You Prepare for Termination in New Hampshire?

Preparing for termination in New Hampshire involves careful planning and adherence to legal requirements to ensure a smooth and lawful process. Here is how you can prepare:

  • Review Company Policies and Procedures: Familiarize yourself with your company’s policies and procedures related to termination. Ensure that you follow and understand the steps and requirements for documentation.
  • Evaluate the Reasons for Termination: Assess the reasons for termination and gather relevant information or documentation to support the decision. Consider whether the termination is due to poor employee performance, misconduct, or other legitimate reasons.
  • Consider Legal Implications: Evaluate the legal implications of the termination and seek guidance from legal counsel to ensure that the termination is conducted lawfully.
  • Prepare Documentation: Document the reasons for termination, including any performance evaluations and disciplinary actions. Prepare a termination letter or notice outlining the decision and any next steps for the employee.
  • Plan the Termination Meeting: Schedule a termination meeting with the employee in a private and confidential setting. Prepare talking points and anticipate questions or reactions from the employee. Ensure that the termination meeting is conducted with empathy, professionalism, and respect.
  • Arrange for Transition: Develop a plan for transitioning the employee out of the organization, including finalizing outstanding work, transferring responsibilities, collecting company property, and addressing logistical details such as access to the company’s systems or facilities.
  • Address Benefits and Final Pay: Ensure that the employee receives their final paycheck promptly as required by state law. Provide information about the continuation of benefits, such as COBRA coverage, and assist the employee with any questions or concerns related to benefits.
  • Communicate with Remaining Staff: Consider how to communicate the termination to remaining staff members, taking care to maintain confidentiality and professionalism. Provide any necessary information or support to ensure a smooth transition for the team.
  • Follow-Up and Document: After the termination, follow up as needed to address any remaining questions or concerns. Document the termination process, including the reasons for termination, discussions during the meeting, and any actions taken.

Steps for a Respectful Termination Process in New Hampshire

Conducting a respectful termination process in New Hampshire is essential for maintaining positive relationships with employees and upholding ethical standards. Here are steps to ensure a respectful termination process:

  • Review the reasons for termination and ensure they align with company policies and legal requirements. Consider the employee’s tenure, contributions, and potential impact on the team dynamics.
  • Schedule a private and confidential meeting with the employee to deliver the news. Choose a neutral and comfortable location to conduct the meeting.
  • Deliver the termination decisions with empathy and respect for the employee’s feelings. Use clear and concise language to explain the reasons for termination, avoiding blame or judgment.
  • Allowed the employee to express their thoughts, feelings, and questions about the termination. Listen actively and address any concerns or questions with transparency.
  • Offer support to the terminated employee during the transition. Provide assistance with job search and information about unemployment benefits.
  • Respect the employee’s privacy and confidentiality throughout the termination process. Communicate the termination respectfully to the remaining employees and provide support during the transition period.
  • Document the termination process and maintain accurate records for legal compliance and future reference.

Post-Termination: What Happens After Terminating Employees in New Hampshire?

After terminating an employee in New Hampshire, several steps should be taken to ensure a smooth transition for the departing employee, the remaining employee, and the rest of the organization. Here’s what happens next:

  • Final Pay and Benefits: Provide the terminated employees with their final paycheck promptly and inform the employee about the continuation of benefits.
  • Return of Company Property: Arrange for the return of any company-owned property, such as access badges, keys, electronic devices, and other equipment that has the terminated employee.
  • Access and Security: Revoke the employee’s access to company facilities, systems, and confidential information to ensure the security of company assets.
  • Transition of Responsibilities: Transfer the departing employee’s responsibilities and duties to other team members or reassign them as necessary to ensure continuity of operations.
  • Notification to Relevant Parties: Notify the HR, IT, payroll, and other departments about the termination to ensure proper processing of paperwork and adjustments to systems or records.
  • Documentation and Recordkeeping: Document the termination process and maintain accurate records for legal compliance and potential defense against legal claims.
  • Communicate with the Remaining Staff: Communicate the termination respectfully to the remaining staff members, emphasizing confidentiality and sensitivity.
  • Transition Support for Team Members: Provide support to the remaining employees affected by the departure of the terminated employee. Provide support during their transition by providing training or filling any gaps left.

Legal Considerations During Termination in New Hampshire

When conducting employee terminations in New Hampshire, employers must consider several legal considerations to ensure compliance with state and federal laws. Here are some legal considerations during termination in New Hampshire:

  • At-Will Employment: New Hampshire follows the principle of at-will employment, which means that either the employer or employee can terminate the employment relationship at any time, with or without cause. However, there are exceptions to this rule, such as when termination violates public policy or breaches an employment contract.
  • Discrimination Laws: Employers must ensure that termination decisions are not based on protected characteristics. Discriminatory terminations can lead to legal claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and New Hampshire state laws.
  • Retaliation Protection: Employers cannot terminate employees in retaliation for engaging in protected activities (e.g. whistleblowing, filing discrimination complaints, exercising rights under employment laws). Retaliatory terminations are prohibited by state and federal laws and can result in legal claims.
  • Final Pay Requirements: New Hampshire labor laws require employers to pay terminated employees all wages due, including any accrued but unused vacation time. Final wages must be paid on the employee’s final day of work or the next regular payday, whichever occurs first. Failure to provide final pay promptly can lead to legal claims for wage violations.
  • Unemployment Benefits: Terminated employees may be eligible to receive unemployment benefits, depending on the circumstances of their termination. Employers must provide accurate information to the New Hampshire Department of Employment Security regarding the reasons for termination to avoid disputes over unemployment benefits eligibility.
  • COBRA Continuation Coverage: Employers subject to the Consolidated Omnibus Budget Reconciliation Act (COBRA) must offer terminated employees and their eligible dependents the opportunity to continue their group health insurance coverage for a limited period after termination. Employers must provide timely notice of COBRA rights to terminated employees to avoid potential legal claims.
  • WARN Act: Employers with 100 or more employees may be subject to the federal WARN Act, which requires advance notice to employees and government agencies in the event of mass layoffs or plant closings. Failure to comply with WARN Act requirements can result in legal penalties.
  • Employee Contracts and Agreements: Employers should review any employment contracts, severance agreements, or other written agreements with terminated employees to ensure compliance with contractual obligations and avoid potential breach of contract claims.
  • Documentation and Recordkeeping: Employers should maintain accurate and thorough documentation of the termination process, including reasons for termination, disciplinary actions or performance evaluations, and communications with the terminated employee.
  • Consultation with Legal Counsel: Employers could seek guidance from experienced employment law attorneys to ensure compliance with state and federal laws and minimize the risk of legal claims.

Bonus: Best Practices for Reducing Litigation Risks in New Hampshire

Reducing litigation risks in New Hampshire requires a proactive approach to managing employment relationships and terminations. Here are some best practices:

  • Establish clear and consistent company policies, the policies and procedures must govern all aspects of employment. Employers must ensure that these policies are communicated to employees and consistently applied across the company.
  • Provide employee training and education to managers and HR staff on relevant employment laws, company policies, and best practices for handling employee issues. Employers should ensure that managers understand their role in managing performance and conducting terminations legally and ethically.
  • Maintain thorough documentation of employee performance, disciplinary actions, and termination decisions. Documenting the reasons for termination, prior warnings, or corrective actions, can provide crucial evidence in the event of a legal dispute.
  • Implement a structured performance management system to help employees improve. Address performance issues promptly and consistently with feedback sessions and opportunities to prevent them from escalating to the point of termination.
  • Base termination decisions on objective criteria such as performance metrics, behavioral standards, or business necessity. Avoid making decisions based on personal biases or discriminatory factors.
  • Consider alternative solutions to address underlying issues and allow the employee to remain in their role.
  • Seek guidance from legal counsel when making employment decisions, especially involving terminations. Legal counsel can review policies and procedures, assess potential legal risks, and provide advice on compliance with state and federal laws.
  • Offer a fair severance package to departing employees. This can help mitigate the risk of litigation by providing employees with financial support and an incentive to move on amicably.
  • Respect the privacy and confidentiality of employees throughout the termination process. Avoid discussing sensitive information with other employees.
  • Take any complaints or concerns seriously and investigate promptly and thoroughly. Address employee grievances timely and fairly to prevent them from escalating into legal disputes.

Final Thoughts

Firing an employee in New Hampshire is a crucial step that affects workers and employers. For employers in New Hampshire, familiarizing themselves with these laws and implementing the best practices helps mitigate legal risks, promote fairness and equity in the workplace, and maintain positive employee relations.

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.