This bill introduces a new section to RSA 275, mandating that employers with 15 or more employees who offer paid earned time must compensate employees for any unused earned time upon separation from employment. Specifically, it requires employers to inform employees about their policies regarding the accrual and use of earned time, provide a system for processing requests, and maintain an accounting of both used and unused earned time. The bill also clarifies that terms like "earned time," "vacation," and "paid time off" are interchangeable.

Additionally, the bill amends RSA 275:43 to stipulate that if an employee is separated due to business closure, change of ownership, or lack of reasonable assurance of return, their unused paid time off (excluding sick days) will be treated as wages and must be paid upon separation. If an employer does not specify the types of paid time off, the entire balance will be prorated upon separation. Employees may also agree in writing to carry forward unused paid time off to a new employer after a change in ownership. The act is set to take effect on January 1, 2026.

Statutes affected:
Introduced: 275:43