Hiring New Employees in New Hampshire: Legal Guide for Employers

Develop a clear job description that outlines the position's responsibilities, required qualifications, and expected work hours. Ensure the job posting complies with New Hampshire employment laws and does not contain discriminatory language. Post the job opening through appropriate channels.

Create or update your employment application form to collect necessary information from candidates while ensuring compliance with New Hampshire laws. The application should avoid questions about age, race, religion, national origin, disability, or other protected characteristics. Include authorization for reference checks and verification of employment history.

Interview qualified candidates and select the best fit for the position. Ensure interview questions comply with anti-discrimination laws and focus on job-related qualifications. Document the selection process and reasons for hiring decisions to demonstrate non-discriminatory practices.

Draft an offer letter that includes the position title, start date, compensation, benefits, and employment status (full-time, part-time, exempt, non-exempt). In New Hampshire, clearly state if employment is at-will, meaning either party can terminate the relationship at any time with or without cause.

If offering a contract rather than at-will employment, prepare a detailed employment contract. Include terms of employment, compensation, benefits, termination conditions, and any special provisions. In New Hampshire, employment contracts should clearly outline all terms to avoid future disputes.

Draft a non-disclosure agreement to protect your company's confidential information and trade secrets. Ensure the agreement is reasonable in scope and duration to be enforceable under New Hampshire law. The agreement should clearly define what constitutes confidential information.

If necessary for your business, draft a non-compete agreement. In New Hampshire, non-compete agreements are generally enforceable if they are reasonable in geographic scope, duration, and the business interest being protected. Note that New Hampshire prohibits non-compete agreements for low-wage employees (those earning less than or equal to 200% of the federal poverty level).

Create a form that obtains the candidate's consent to conduct background checks. Under the Fair Credit Reporting Act and New Hampshire law, employers must obtain written authorization before conducting background checks. The form should be clear about what information will be checked and how it will be used.

After receiving signed authorization, conduct appropriate background checks in compliance with federal and New Hampshire laws. New Hampshire follows the 'ban the box' approach for public employers, but private employers can still ask about criminal history on applications. Consider only information relevant to the position.

Develop or update your employee handbook to include company policies, procedures, and expectations. Include information on paid leave, including New Hampshire's requirements for providing notice of available leave. The handbook should also cover anti-discrimination policies, workplace safety, and complaint procedures.

Prepare forms for the new employee to enroll in available benefits programs such as health insurance, retirement plans, and other benefits. Include clear information about eligibility requirements, coverage options, costs, and enrollment deadlines.

Federal law requires all employers to verify employment eligibility using Form I-9. The employee must complete Section 1 on or before their first day of work. As the employer, you must complete Section 2 within 3 business days of the employee's start date by examining acceptable documents that establish identity and employment authorization.

Have the new employee complete the federal W-4 form to determine the correct federal income tax withholding. The employee should complete this form on or before their first day of work. Keep the completed form in your records; do not send it to the IRS.

New Hampshire does not have a state income tax on wages, so there is no state withholding form equivalent to the W-4. However, if your employee lives in a neighboring state that does have income tax (like Massachusetts), you may need to handle withholding for that state.

Create a form for employees to authorize direct deposit of their paychecks. Include fields for bank account information and authorization signature. In New Hampshire, employers cannot require direct deposit, so this should be presented as an optional benefit.

Create a form to collect emergency contact information from the new employee. This should include names, relationships, phone numbers, and addresses of individuals to contact in case of emergency.

If this is your first employee in New Hampshire, register with NHES for unemployment insurance. All employers must register within 30 days of hiring their first employee. Registration can be completed online through the NHES website.

New Hampshire law requires employers with one or more employees to carry workers' compensation insurance. Contact an insurance provider to obtain coverage before the employee's first day of work. Failure to carry required coverage can result in significant penalties.

Federal and New Hampshire law requires employers to report new hires to the New Hampshire Department of Health and Human Services within 20 days of hire. This can be done online through the NH New Hire Reporting System or by submitting the New Hire Reporting Form.

New Hampshire employers must display certain state and federal workplace posters in a location visible to all employees. These include posters regarding minimum wage, workplace safety (OSHA), equal employment opportunity, and workers' compensation. Obtain these posters from the NH Department of Labor and the U.S. Department of Labor.

Schedule and conduct an orientation session for the new employee. Cover company policies, procedures, expectations, and safety protocols. Review the employee handbook and have the employee acknowledge receipt. This is also a good time to complete any remaining paperwork and answer questions.

Add the new employee to your payroll system. Ensure proper tax withholding based on their W-4 form. New Hampshire has no state income tax, but you'll need to withhold federal income tax, Social Security, and Medicare taxes. If applicable, set up direct deposit based on the employee's authorization form.

Create a personnel file for the new employee that includes all employment documents, including the application, offer letter, signed agreements, tax forms, and other onboarding documents. In New Hampshire, employees have the right to inspect their personnel files with reasonable notice.