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Frequently Asked Questions
How do I know whether my business is subject to all those pesky State and Federal Statutes?
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Like all good legal questions the answer to this inquiry is "it depends." The applicability of various statutes
to businesses is often dependent on the number of employees. For instance, some statutes, like New Hampshireís Workerís
Compensation Statute apply to your business even if you are the only employee. Others, like the Americans With
Disabilities Act apply only if you have a threshold number of employees; in that case, 15.
Applicability can also depend on the type of business you are engaged in. For example, agricultural businesses are
often exempted from various statutes. These exemptions sometimes make sense. More often than not, however, they are
the result of effective lobbying campaigns or a testament to the power of a particular legislator and the needs of
an important constituent.
Further, some Federal statutes condition applicability on the amount of Interstate Commerce or the type and amount
of contracts to which your business is a party.
Suppose I want to fire an older person. Is that OK?
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Not really. The Age Discrimination in Employment Act (ADEA) was passed by Congress in 19--to protect the employment rights of older Americans. The Act is codified at 29 U.S.C. 623 and applies to companies that have 20 or more employees. The Act prohibits covered employers from discharging or otherwise discriminating against employees who are age 40 or older. This includes forced retirement of employees with satisfactory performance although at section 631 of the statute an exemption is allowed for certain highly compensated "Bona Fide Executives" or "high policy makers." These individuals may be required to retire at age 65. An employer can discriminate on the basis of age only when it is a bona fide occupational requirement necessary for the safe and efficient operation of the business. Notices regarding employeeís rights under the ADEA must be posted in a conspicuous place.
Is the law regarding employee benefit plans really as complicated as lawyers make it out to be?
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More so. Letís just say that the federal statute which governs employee benefits, Employee Retirement Income Security Act of 1974 ("ERISA") had as its alternate title Every Reading Impairs Sanity Act. Unlike most laws, which need lawyers to make them more complicated, ERISA is self-complicating. But have no fear. You donít need to know the ins and outs of this impenetrable forest of arcane legislation. You just have to know enough to be able to recognize whatís covered by ERISA and seek advice before you act. ERISA covers and protects employeesí rights under health, retirement and welfare plans. ERISA requires employers to prepare written plan documents including a summary plan description. Annual reports must also be submitted to the Federal government. All retirement plan assets must be held in one trust and ultra-strict fiduciary responsibilities must be observed. Violation of ERISA can lead to substantial penalties including personal liability of plan fiduciaries. ERISA is codified at 29 U.S.C 1001 and applies to businesses that have plans regardless of the number of employees although certain government and defined "church" plans are exempted. Notices of rights under ERISA must be posted in a conspicuous place. ERISA is enforced by the U.S. Department of Labor, Pension & Welfare Benefits Division.
What’s the Family and Medical Leave Act all about, anyway?
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The Family and Medical Leave Act, codified at 29 U.S.C. 2103 ("FMLA ") applies to businesses with 50 or more employees. The Act requires that eligible employees (1250 hours in the past____) be provided up to 12 weeks unpaid leave during any 12 month period to care for a newborn, newly adopted or foster child. The employee is also entitled to leave to care for a seriously ill family member or because of a serious illness that makes the employee unable to perform the essential functions of the job. Covered leave can be taken via a reduced schedule or on an intermittent basis if medically necessary or agreed to by the employer and the employee. During FMLA leave the employer must maintain the employees benefits under any group health plan. An employee who takes leave is entitled to return to the same or equivalent position with commensurate pay, benefits and other terms and conditions of employment. Notices regarding the rights of employees under the FMLA must be posted at the hiring and work locations.
Is there some law that says my company has to give notice of plant closings or massive layoffs?
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Why, yes. - Codified at 29 U.S.C. 2101, The Workers Adjustment & Retraining Notification Act ("WARN ") protects the rights of employees and local government to receive a 60 day (or as soon as practicable) advanced written notice in the event of a plant closing or a massive layoff. It applies to all businesses with 100 or more employees. It doesnít apply to the closing of temporary facilities or where a particular task or undertaking has been completed. Nor does it apply if there is a lockout which is not intended to avoid the statute or in the event of a natural disaster.
How does the Worker’s Compensation Act work?
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Very well thank you. Sorry, couldnít resist. Codified in New Hampshire at RSA 281-A, the Act applies to all employers regardless of the number of employees. All employers are required to provide.. Workerís Compensation insurance coverage for all employment related injuries or diseases. What is or isnít an en employment related injury is often in dispute. See the discussion below regarding injuries incurred in company sponsored recreational activities. Under the law, the benefits of this insurance are the employeesí sole remedy for an injury or disease arising out of or in the course of employment. As a result, employers are immune from employee lawsuits for work related injuries, even if they allege intentional or even malicious conduct. This immunity also applies to suits against fellow employees but they are only immune for claims of negligence. They may still be sued for intentional, malicious or wanton conduct. Notices related to Workerís Compensation Rights must be posted in a conspicuous place. The Workerís Compensation Statute is administered by the New Hampshire Department of Labor.
If my employee injures himself in a recreational or athletic activity which I sponsor, is that injury covered
under the Worker Compensation Statute?
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Not unless the employee reasonably expected, based on your instruction or policy that such participation was a condition of employment or was required for promotion, increased compensation or continued employment. This is the rule whether the injury occurs on the work premises or off. The New Hampshire legislature amended the statute in 1997 to overrule two New Hampshire Supreme Court cases that allowed workers to collect compensation for injuries incurred while playing volleyball during lunchtime and playing on the company softball team.
Does Worker’s Compensation Insurance cover injuries incurred as a result of termination of employment?
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The United States District Court for the District of New Hampshire has take the position that the Workerís Compensation immunity (the "bar") applies to injury or disease arising out of the termination of employment. Several New Hampshire Superior Courts have taken a contrary position.
What benefits do I have to let my terminated employees continue?
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Terminated employees are entitled to continue their Health and Dental insurance coverage. - The Consolidated Omnibus Budget Reconciliation Act of 1985("COBRA") applies to businesses with 20 or more employees. Under COBRA employers must offer terminated employees the option of continuing their health insurance benefits. The Act, codified at 26 U.S.C.1162 (2)(A), allows employees to continue coverage at group rates. Under most circumstances the coverage is extended for 18 months for employees and 36 months for dependents. Employers must give notice of COBRA rights in the form dictated by law at the time of termination or other triggering event such as (1) the change of a child from dependent to non-dependent status; (2) death of the employee; (3) divorce of the employee. There are no specific posting requirements. Employees, however, are entitled to the notice described above at the time of a triggering event and are guaranteed at least a 60 day period following the triggering event to decide whether to continue the coverage.
I only have 12 employees. Do the Federal discrimination statutes apply to my company?
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No, unless you are a contractor with the federal government with contracts in excess of $10,000. In that case you are subject to the Rehabilitation Act of 1973 and can not discriminate on the basis of a persons' disability. But be careful, if you have as few as six employees, the New Hampshire law against discrimination, RSA 354-A applies to your company.
As mentioned above, the ADEA applies only to businesses with 20 or more employees. Under the Civil Rights Act of 1964, 42 U.S.C. 2000 (Title VII) employers with 15 or more employees are prohibited from refusing to hire, discharging or otherwise discriminating against any individual because of race, color, religion, sex (including pregnancy) or national origin.
The Americans With Disabilities Act (ADA) prohibits discrimination on the basis of a disability for employers with more than 15 employees. The New Hampshire statute prohibits all of the discrimination covered by the Federal statutes but includes sexual orientation as a protected class as well.
The Federal Statutes are enforced by the Equal Employment Opportunity Commission (EEOC). The State Statutes are enforced by the New Hampshire Commission for Human Rights. The Rehabilitation Act of 1973 is enforced by the U.S. Department of Labor.
What is Sexual Harassment?
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Sexual Harassment is a form of unlawful discrimination on the basis of sex and therefore is prohibited under Title VII of the Civil Rights Act of 1964. Sexual Harassment exists when an employee is subjected to unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature if: (1) submission to the advances is made a term or condition of employment or (2) submission to or rejection of the a sexual invitation is used as a basis for employment decisions ; or (3) the sexual advance, request or conduct substantially interferes with work performance or creates an intimidating, hostile or offensive working environment. In some cases, an employer can avoid liability by having an adequate policy prohibiting sexual harassment and taking prompt and appropriate remedial action.
What is employment-at-will? Does New Hampshire allow me to fire an at will employee for no reason at all?
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Although New Hampshire is classified as an at will employment state, the New Hampshire Supreme Court has recognized many exceptions to the doctrine. Under traditional doctrine, absent an employment or collective bargaining agreement, an employer is free to discharge an employee at any time for any reason. However, the New Hampshire Supreme Court has held that an employee can not be discharged in retaliation for actions taken in furtherance of recognized public policy or for an employeeís refusal to take an action which public policy would condemn. For example, an employee may not be discharged for serving on a jury. The Supreme Court has held that whether or not a public policy exists is generally a question for the jury and the Court should be hesitant to determine as a matter of law that a public policy has not been articulated. The Court has also held that an employee handbook may create an employment contract between the employer and employee, which the employer violates when the termination is contrary to the terms of the handbook. For example, the handbook may specify progressive discipline, which is ignored in the termination. The Court has subsequently recognized, however, that the employer may insert clear language in the handbook conspicuously disclaiming any contractual intent.
Can my employee’s wages be garnished?
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Yes. A garnishment is a court order requiring you to withhold specified amounts from an employeeís wages for payment of a debt owed to a third party. Garnishment is allowed for child support in New Hampshire by the Department of Health and Human Services RSA 458-B.The IRS may also garnish wages for payment of past due taxes. Failure to honor a valid garnishment order may subject an employer to liability for the underlying claim.
What do I keep in my employee’s personnel file?
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Every document related to an employee. It is calculated to be quite broad. It includes, but is not limited to employment applications, internal evaluations, disciplinary documents, payroll records, injury reports and performance assessments. Whether maintained in one or more locations unless privileged by law or exempt from disclosure as part of an ongoing investigation. Every employer shall provide a reasonable opportunity for any employee who so requests to inspect his or her personnefile and further, upon request, provide the employee with a copy of all or part of such file. An employer may only charge the employee a fee reasonably related to the cost of supplying the requested documents. If, upon inspection of hispersonnel file, an employee disagrees with any of the information contained in his file, and the employee and employer cannot agree upon removal or correction of such information, then the employee may submit a written statement explaining his version of the information together with evidence supporting his version. This statement must be maintained as part of the employee's personnelfile and shall be included in any transmittal of the file to a third party.
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