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 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 classified as exempt under certain FLSA statuses.
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.
Employees eligible for overtime pay shall be compensated at a rate of 1.5 times the employee's regular rate of pay for all hours worked over 40 in a workweek.
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)
= $1,000.00 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
$1,000.00 Regular Pay
+ $375.00 Overtime Pay
= $1,375.00 Total Pay
An employee’s regular rate of pay or pay rate is his or her 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.
Signed by President Trump on July 4, 2025, the One Big Beautiful Bill Act allows eligible employees to claim a tax deduction on overtime pay required by the FLSA from taxable income. The overtime tax deduction is effective from January 1, 2025 through December 31, 2028.
An employee can deduct an annual maximum amount of $12,500. For employees jointly filing with a spouse, the annual deduction amount is capped at $25,000. If an employee’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for employees filing jointly), the amount allowed to be deducted will be reduced by $100 for each $1,000 earned above the MAGI.
To be eligible for the overtime tax deduction, employees must include a Social Security number on the tax return for the given tax year. If married, the employee must also file jointly to remain eligible. Even if individuals opt for a standard deduction (vs. itemized deductions) on a tax return, the individual is still eligible for the annual maximum deduction for overtime.
All employers must file information returns to the IRS or Social Security Administration (SSA), as well as deliver the applicable forms, including a W-2, to employees that show the total amount of qualified overtime compensation paid out during the tax year.
In addition to those exempt from overtime requirements under the Fair Labor Standards Act, there are additional employees 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:
It is a common misconception that salaried employees are exempt from overtime pay. However, only those employees meeting a specific salary level test and the definition of either an executive, administrative, or professional (EAP) employee are exempt from overtime.
On November 15, 2024, the U.S. District Court for the Eastern District of Texas invalidated a U.S. Department of Labor (DOL) regulation that raised the salary threshold for the "white-collar" overtime exemption under the Fair Labor Standards Act (FLSA). This decision applies nationwide, rendering the rule ineffective.
As a result of the court ruling, the overtime-exempt salary threshold for 2024, 2025, and the foreseeable future is $684 per week ($35,568 annually). This threshold reflects the most recent update that is still in effect, made in 2019.
For highly compensated employees the salary threshold is $107,432 per year, including at least $684 per week paid on a salary or fee basis.
To learn more about the FLSA, click to access the FLSA Guide here. For more help on classifying employees under FLSA guidelines, click through to see this article.
Here is a brief overview of how the FLSA and federal government define executive, administrative, and professional employees.
In order to qualify for an executive exemption, an employee must pass the Salary Level Test as well as:
In order to qualify for an administrative exemption, an employee must pass the Salary Level Test as well as:
In order to qualify for a professional exemption, an employee must pass the Salary Level Test as well as:
In order to qualify for an outside sales exemption, an employee must pass the Salary Level Test as well as:
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.