New Hampshire Deductions From Pay laws & compensation compliance analysis

New Hampshire Deductions From Pay: What you need to know

An employer may not deduct any portion of an employee's wages unless (NH Rev. Stat. Sec. 275:48):
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• The deduction is required by state or federal law.
• The employee has authorized the deduction in writing for a lawful purpose for the employee's benefit (such as installment payments on legitimate loans made by the employer to the employee; union dues; health, welfare, pension, and apprenticeship fund contributions; voluntary contributions to charities; housing and utilities; voluntary rental fees for nonrequired clothing; voluntary cleaning of uniforms and nonrequired clothing; payments into savings funds held by someone other than the employer; voluntary contributions to a cafeteria plan or flexible benefit plan; voluntary payments for child care by a licensed child care provider; voluntary parking fees; contributions to a political action committee; and for hospital employees only, pharmaceutical, gift shop, and cafeteria items purchased on-site at the hospital). The law now allows employees of charitable organizations to authorize the withholding of wages as a voluntary contribution to the charitable organization for which they work..
• The employee has authorized the deduction in writing for the employee's benefit for any lawful purpose that the employer and employee mutually agree on that does not grant financial advantage to the employer. Employers must keep a record of the deductions. The withholding must not be used to offset payments used to purchase items required in the performance of the employee's job.
• The deduction is made according to lawful rules for medical, surgical, or hospital insurance, is of no financial benefit to the employer, and is clearly recorded in the employer's books.
• The deduction is for voluntary installment payments of legitimate loans made by the employer to the employee as evidenced by a document that includes the time the payments will begin and end; the amounts to be deducted; a specific agreement about whether the employer is allowed to deduct any amount outstanding from final wages at the termination of employment.

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