Understanding Employee Leave Laws in New Hampshire

Navigating employee leave laws in New Hampshire can feel like a daunting task, but staying informed benefits both employers and employees. With laws and programs constantly evolving, staying up-to-date with initiatives like the New Hampshire Paid Family and Medical Leave (NH PFML) program is more important than ever. This program stands out by offering a different approach compared to traditional leave policies.

NH PFML takes a fresh approach to paid leave by offering an entirely voluntary system for wage replacement. Unlike the mandatory programs seen in other states, New Hampshire gives employers and employees the freedom to decide whether they want to participate. This flexibility makes the program a practical option for addressing important life events.

For employers interested in strengthening workplace benefits or employees needing financial support during leave, NH PFML is worth exploring. The program provides practical resources, from wage replacement to job protection, that can make navigating leave policies in New Hampshire easier.

Overview of New Hampshire's Paid Family and Medical Leave (NH PFML) Program

The New Hampshire Paid Family and Medical Leave (NH PFML) program stands out as the first state-sponsored paid leave plan in the country that operates on a voluntary basis. This plan uses an insurance model to provide eligible workers with financial assistance during major life events. Unlike programs in many other states, NH PFML gives both employers and employees the choice to participate.

Employers can choose to enroll their workforce in the program, while employees whose companies do not participate have the option to sign up individually. The coverage includes 60% wage replacement for up to six weeks a year. Workers can use this benefit for events like bonding with a new child, caring for a family member with a serious health issue, or managing their own medical needs.

The program does require a seven-day unpaid elimination period before benefits are activated. For employers, opting into NH PFML can come with perks, including potential tax benefits like the Business Enterprise Tax (BET) credit for premiums they pay. Employees enrolling on their own have premiums capped at $5 per week, keeping the program affordable for individuals.

Qualifying Events for NH PFML

The New Hampshire Paid Family and Medical Leave (NH PFML) program supports employees during critical life events by providing wage replacement for specific types of leave. To qualify, the reason for leave must align with one of the program's defined categories. Below is a breakdown of the qualifying events covered under NH PFML:

Birth, adoption, or fostering of a child: Employees can take leave within the first year of welcoming a child into their family. This includes time to bond with a newborn, newly adopted child, or newly placed foster child.
Caring for a spouse, child, or parent with a serious health condition: Employees are eligible for leave to provide care for immediate family members experiencing serious medical issues. This ensures financial stability while assisting loved ones in need.
Caring for a spouse, child, or parent in the military: Support for military families is included. Employees can take leave to care for a family member actively serving in the military who requires assistance due to injury, illness, or other service-related conditions.
Military exigency leave: Employees may also take leave for urgent matters related to a family member's active duty deployment. This could cover needs like managing legal or financial arrangements or attending deployment-related events.
Personal serious health condition: If an employee experiences a serious health condition and their employer does not provide short-term disability insurance, they can use NH PFML. This ensures wage replacement during periods when the employee cannot work due to their own medical needs.

Each qualifying event is designed to address significant challenges employees may face, offering critical support at times when financial assistance and flexibility are essential.

Employer Participation in NH PFML

Employers in New Hampshire have a key role in the state's Paid Family and Medical Leave program. Public employers and private employers with more than 50 employees are eligible to participate. This eligibility allows them to offer paid family and medical leave coverage as an employee benefit, enhancing workplace flexibility and competitiveness in the labor market.

Employers have the flexibility to decide how to handle premium costs for the NH PFML insurance. They can:

Fully fund the cost of premiums: Employers absorb the total cost, creating an attractive benefit for employees.
Split premium costs with employees: Sharing the cost helps balance affordability for both the business and its workforce.
Pass the full cost to employees: Employers may choose to deduct the complete premium from employee wages.

To incentivize participation, businesses purchasing NH PFML insurance directly through the state's insurance partner are eligible for a Business Enterprise Tax (BET) credit of up to 50% of their premium payments. This tax credit reduces the financial burden of offering the benefit, making it a more accessible option for many employers.

Participating employers are required to implement payroll deductions for employee contributions. They must also provide heightened employment protections during leave. This includes continuing an employee's group health insurance coverage under the same terms as if the employee were still working. Additionally, employers must guarantee job protection, ensuring employees can return to their original position or an equivalent one after their leave concludes.

By opting into NH PFML, employers can enhance their benefits package while supporting their employees through life's critical moments.

Employee Options for NH PFML

Employees in New Hampshire whose employers do not provide NH PFML or equivalent benefits still have access to coverage through individual insurance plans. This option ensures that workers can secure financial support during qualifying life events, even if their employer chooses not to participate in the program.

Premium payments for individual NH PFML plans are affordable and capped at $5 per week, totaling no more than $260 annually. This fixed cost makes the program accessible for employees who want to protect their income without putting a strain on their budget.

Individual policyholders must meet specific requirements before accessing benefits. There is a mandatory seven-month waiting period after enrolling, during which no claims can be filed. Once eligible to use the plan, employees must also observe a seven-calendar-day unpaid elimination period for each benefit year before wage replacement begins.

The individual plan provides six weeks of 60% wage replacement annually. Employees can take leave in full-day increments or in smaller segments, with a minimum of four hours per leave period. This flexibility allows workers to tailor their leave to meet their personal and professional needs while still receiving financial assistance.

For employees whose workplaces don't offer NH PFML, these plans are a lifeline, offering critical income protection during life's most challenging moments.

Family and Medical Leave Act (FMLA) in New Hampshire

The Family and Medical Leave Act (FMLA) is a federal law that grants eligible employees job-protected, unpaid leave for specific family and medical needs. This act ensures that employees can take time off work without the risk of losing their job, provided they meet the outlined criteria and follow the regulations. While FMLA leave is unpaid, employees may use accrued paid leave, such as sick days or vacation, concurrently if their employer allows it.

Eligibility Criteria

Employees in New Hampshire seeking FMLA leave must meet strict eligibility requirements. These include:

Length of Employment: The employee must have worked for their employer for at least 12 months. This does not need to be consecutive but must total 12 months within the past seven years.
Hours Worked: The employee must have worked at least 1,250 hours during the 12 months immediately preceding the start of the leave.
Employer Size: The employer must be covered by FMLA, which generally applies to private employers with 50 or more employees within a 75-mile radius, as well as public agencies and schools.

Failure to meet all three criteria disqualifies an employee from taking FMLA-protected leave.

Qualifying Reasons for Leave

Under the FMLA, employees may take up to 12 weeks of unpaid leave in a 12-month period for specific qualifying reasons. These reasons include:

Birth or Placement of a Child: Employees can take leave for the birth of a child or the placement of a child for adoption or foster care. This leave must occur within the first year of the child's birth or placement.
Serious Health Condition of a Family Member: Employees may take leave to care for a spouse, child, or parent with a serious health condition. This includes illnesses, injuries, or conditions requiring inpatient care or ongoing medical treatment.
Employee's Own Serious Health Condition: If an employee has a health condition that prevents them from performing their job's essential functions, they are eligible for FMLA leave.
Military-Related Leave: Employees may take qualifying exigency leave for specific needs related to a family member's active-duty military service. This can include attending military events, arranging childcare, or addressing other logistical issues caused by deployment.
Military Caregiver Leave: Employees can take up to 26 weeks of leave in a single 12-month period to care for a covered servicemember with a serious injury or illness.

The FMLA offers critical protections for employees balancing work responsibilities with personal or family health needs. Employers must ensure compliance with these regulations while supporting eligible employees during their leave.

Interaction Between NH PFML and FMLA

NH PFML and FMLA often intersect, offering employees the ability to combine benefits where applicable. Employees can use NH PFML wage replacement alongside the job-protected leave provided by FMLA. This means that while FMLA guarantees a continuation of employment and health insurance, NH PFML adds financial support during the leave period. Employers must coordinate both programs to ensure compliance and proper benefit administration.

Differences in Eligibility

Eligibility criteria for NH PFML and FMLA differ significantly. NH PFML participation depends on whether an employer opts into the program or if an employee purchases an individual plan. In contrast, FMLA requires employers to meet federal guidelines, such as having 50 or more employees within a 75-mile radius, and employees must meet specific tenure and hours worked thresholds. Some employees may qualify for NH PFML independently but not meet the stricter FMLA requirements.

Leave Duration and Coverage

NH PFML provides up to six weeks of paid leave per year with a 60% wage replacement. FMLA, however, grants up to 12 weeks of unpaid leave in a 12-month period for eligible reasons. Employees using both programs must carefully track usage to avoid exceeding allowable time under either policy. Employers should also note that NH PFML does not expand the total leave entitlement beyond what FMLA permits—it merely enhances it with wage replacement.

Job Protection

Job protection is a critical distinction between the two programs. FMLA guarantees that an employee returning from leave will be reinstated to the same or an equivalent position. NH PFML does not inherently provide job protection unless the employer is covered by FMLA or other state-specific job protection laws. Employers must ensure that employees using NH PFML alone understand their rights regarding job reinstatement.

Why Alignment Matters

Understanding both NH PFML and FMLA is essential for creating a compliant and supportive leave policy. Employers must align state and federal requirements to avoid legal risks and ensure employees receive the benefits they are entitled to. Employees benefit from knowing how the programs work together, enabling them to plan their leave effectively without financial or professional uncertainty.

Jury Duty Leave in New Hampshire

In New Hampshire, employers are required to provide leave for employees summoned to jury duty. State law protects employees from any adverse action—such as termination or demotion—due to jury service. While employers are not required to pay employees during jury duty leave, exempt employees must receive their full salary for any workweek in which they perform some work, per federal law under the Fair Labor Standards Act (FLSA).

Employees should provide their employer with a copy of the jury summons as soon as possible to allow for proper scheduling and coverage. It’s also worth noting that employers cannot force employees to use their vacation or paid time off (PTO) to cover the time spent serving on a jury.

Military Leave in New Hampshire

Military leave in New Hampshire is governed by both federal and state laws. The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides job protection and benefits for employees who are members of the uniformed services. This includes active duty, National Guard, and reserve members who are called to serve.

New Hampshire law offers additional protections. For example, public employees are entitled to 15 days of paid military leave per year for training or active duty. Private employers are not required to pay for military leave, but employees have the right to use accrued PTO if they choose. Upon returning from service, employees are guaranteed reinstatement to their previous or a comparable position, provided they meet USERRA’s eligibility criteria, such as providing timely notice to their employer and returning to work within the prescribed timeframes.

Navigating employee leave laws in New Hampshire can be complex, but staying informed and proactive is the key to success. By understanding the intricacies of programs like NH PFML and FMLA, you can ensure compliance, support your employees, and foster a positive workplace culture. If you need assistance streamlining your HR processes and managing employee leave, book a demo with us today and discover how our comprehensive solutions can help your business thrive.