This bill mandates that employers with 15 or more employees must compensate employees for any unused earned time, which includes vacation, holiday, and personal time, upon separation from employment under certain conditions. Specifically, if an employee is separated due to the employer's business closure, change of ownership, or lack of reasonable assurance of return, the unused paid time off will be considered wages and must be paid out. The bill also requires employers to inform employees about their policies regarding the accrual and use of earned time, provide a means for processing requests, and maintain an accounting of earned time used and remaining.

Additionally, the bill introduces new language to RSA 275:43, stating that if an employer does not specify the types of paid time off awarded, the entire balance of unused paid time off will be prorated upon separation. Employees may also agree in writing to carry forward their unused paid time off to a new employer following a change in ownership. The act is set to take effect on January 1, 2026, and while it does not provide funding or authorize new positions, it is expected to have an indeterminable fiscal impact on the operating budgets of the University System of New Hampshire and the Community College System of New Hampshire.

Statutes affected:
Introduced: 275:43