New Hampshire Loans laws & HR compliance analysis

New Hampshire Loans: What you need to know

An employer may deduct an employee's voluntary installment payments of legitimate loans made by the employer to the employee from the employee's wages. The employee must request the deductions in writing. The employer must provide a written itemized accounting of the requested deductions to the employee at least once per month (NH Rev. Stat. Sec. 275:48(d)(3)). There must also be a document that includes the time the payments will begin and end, the amounts to be deducted, and 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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If the advance or loan is large (e.g., tuition expenses), it is advisable to obtain a signed promissory note acknowledging receipt of the funds, the amount, and the person's obligation to repay in addition to the written withholding authorization. Handling tuition advances with a promissory note (and a payroll authorization) will put the employer in a better position to pursue repayment if it is not forthcoming.
Last reviewed on March 31, 2016.

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