New Hampshire Overtime Law - The Complete Guide for 2024

In order to stay in compliance and ensure that employees are paid properly and accurately, employers in New Hampshire (NH) must understand the state’s overtime laws.

Here is what employers need to know regarding NH overtime laws, and NH overtime pay.

New Hampshire Overtime Laws Overview

New Hampshire Labor Laws require that employers must comply with state overtime regulations under New Hampshire Minimum Wage Law, as well as the Fair Labor Standards Act (FLSA).

New Hampshire Overtime Law requires that eligible workers must receive overtime compensation for all hours worked over 40 in a workweek. New Hampshire Overtime Laws apply to all employees working in the state, with a few exceptions including those who are classified as exempt under their FLSA status.

What is a Workweek?

Employers may define a workweek as any seven-consecutive-day cycle. The cycle must begin and end on the same day and time every week. If an employer does not define a workweek, then the workweek should default to a typical calendar week of Sunday through Saturday.

New Hampshire Overtime Pay Laws

Employees who are eligible for overtime pay shall be compensated at a rate of 1.5 times their regular rate of pay for all hours worked over 40 in a workweek.

How to Calculate Overtime Pay in New Hampshire

Below is an example of a standard overtime rate calculation in New Hampshire.

New Hampshire Overtime Calculation Example:

40 Regular Hours Worked
X $25.00 Per Hour (Regular Pay Rate)
= $1000.00 Total Regular Pay 

$25.00 Per Hour (Regular Pay Rate)
+ 1 ½ Overtime Premium ($12.50 Per Hour)
= $37.50 Per Hour (Overtime Pay Rate)  

10 Overtime Hours Worked
X $37.50 Per Hour (Overtime Pay Rate)
= $375.00 Total Overtime Pay

$1000.00 Regular Pay 
+ $375.00 Overtime Pay
= $1,375.00 Total Pay

What is a Regular Pay Rate?

An employee’s regular rate of pay or pay rate is their normal hourly wage. If an employee’s pay rate differs at times, then the average pay rate should be used as the regular rate of pay.

To determine an employee’s regular rate of pay, add together weekly compensation (not including overtime) and divide by 40 hours.

Compensation Included When Calculating the Average Regular Pay Rate:

• Hourly rates
• Salary rates
• Piece rates and flat rates
• Commissions
• Non-discretionary bonuses
  • Performance-based, due to a contract, agreement, or promise

Compensation Excluded When Calculating the Average Regular Pay Rate:

• Discretionary bonuses
  • Such as a holiday bonus
• Tips and service charges
• Reimbursements
• Paid time off

Exceptions to New Hampshire Overtime Requirements

In addition to those who are exempt from overtime requirements under the Fair Labor Standards Act, there are additional employees who are exempt from overtime under New Hampshire Minimum Wage Law. 

While the following employees are exempt from overtime pay under state law, under federal law, these employees may still be considered non-exempt:

• Any employee employed by an amusement, seasonal, or recreational establishment, so long as one of the following applies:
  • It does not operate for more than seven months in any calendar year
  • During the preceding calendar year, the employer’s average receipts for any six months of such year were 33% / one-third or less of its average receipts for the other 6 months of the same year.
    • The establishment must also in the previous year have received at least 75% of its income within six months (does not need to be six consecutive months)

FLSA Salary Level Test

It is a common misconception that salaried employees are exempt from overtime pay. However, only those employees who meet a specific salary level test and the definition of either an executive, administrative, or professional (EAP) employee are exempt from overtime.

On April 23, 2024, the U.S. Department of Labor announced a final rule regarding new exempt salary thresholds for the standard salary level, and the highly compensated employee total annual compensation threshold. 

To be considered except from overtime, an employee must make at least the following:

For highly compensated employees to be considered exempt from overtime, an employee must make at least the following:

To learn more about the FLSA, click to access the FLSA Guide here. And for more help on classifying employees under FLSA guidelines, click through to see this article. 

Definitions of Executive, Administrative, and Professional (EAP) Employees

Here is a brief overview of how the FLSA and federal government define executive, administrative, and professional employees.

Executive Exemption

In order to qualify for an executive exemption, an employee must pass the Salary Level Test as well as:

• Have a primary duty of either managing a business/company or managing a customarily recognized department or subdivision of a business/company
• Customarily and regularly direct the work of at least two or more other full-time employees
• Have the authority to hire and/or fire other employees, or their thoughts on similar decisions are given particular weight and consideration

Administrative Exemption

In order to qualify for an administrative exemption, an employee must pass the Salary Level Test as well as:

• Have a primary duty of office or non-manual work that is directly related to the management, or general business operations of either the employer or the employer’s customers, or that includes the exercise of discretion and independent judgment in regard to important matters

Professional Exemption

In order to qualify for a professional exemption, an employee must pass the Salary Level Test as well as:

• Have a primary duty of work requiring advanced knowledge, or in other words, work that is predominantly intellectual and requires the consistent exercise of discretion and judgment. This advanced knowledge must be in a field of science or learning and must be obtained by a prolonged course of specialized intellectual instruction (such as college), or:
• Have a primary duty of work requiring invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor (Musicians, Composers, Engineers, etc.)

Outside Sales Exemption

In order to qualify for an outside sales exemption, an employee must pass the Salary Level Test as well as:

• Have a primary duty of making sales or taking orders outside of their employer’s main workplace, as well as being paid either a salary or commission-based pay structure.

Get Help with New Hampshire Payroll Compliance

To learn more about processing payroll in New Hampshire or maintaining compliance with New Hampshire overtime pay and requirements, contact a New Hampshire payroll services company. 

By leveraging experts in payroll outsourcing and / or modern payroll software, companies can avoid non-compliance fines and potential hefty legal penalties. 

For help finding a provider, contact Employer Pass today.

Guest Author: Matt Gatsas

Matt serves as the Vice President of Trivantus, New Hampshire payroll services company providing personalized service that has lead to having been voted Best Payroll Service Company by New Hampshire Business Review for many consecutive years, and more recently, earning a spot in the ranks of Inc. 5000 as one of America's fastest growing companies. Matt spends most of his time overseeing and managing the financial functions at Trivantus. Matt graduated from Babson College with a degree in Investments and is a resident of Bedford, NH where he lives with his wife Celia and two children Calla and Matthew. A big sports fan that loves to play golf, Matt has a deep love for horse racing, helping to manage his family's Thoroughbred horse racing partnership business, Sovereign Stable, Inc, and regularly attending races.