Employment Contract requirements in New Hampshire
- Both parties must be legally capable of entering into a contract (e.g., age of majority, sound mind).
- The contract must have a lawful purpose and be supported by consideration (something of value exchanged).
- While oral contracts are generally valid in New Hampshire, written contracts are highly recommended for enforceability.
- For certain types of contracts (e.g., real estate, contracts lasting over one year), the Statute of Frauds requires a written agreement.
- New Hampshire does not require witnesses or notarization for employment contracts to be valid, but notarization can add an extra layer of authenticity.
- The contract must not violate state or federal laws, such as minimum wage or overtime provisions.
How to create a Employment Contract in New Hampshire
- Define the nature of the relationship: employee or independent contractor. Misclassification can lead to legal issues.
- Clearly outline job duties, compensation, benefits, and work hours in the employment agreement.
- Include provisions for termination, severance, and dispute resolution to avoid ambiguity.
- If the contract includes non-compete or confidentiality clauses, ensure they are reasonable and comply with New Hampshire laws.
- Both parties should review the contract carefully, consider legal advice, and sign and date the agreement. Providing copies to each party is essential
What a Employment Contract typically costs
The cost of creating an employment contract in New Hampshire varies. If you use online templates, it may cost little to nothing. Hiring an attorney to draft a custom agreement can range from a few hundred to over a thousand dollars, depending on complexity. Attorney fees typically range from $200 to $500 per hour.
Ready to draft your employment contract? Get started with our state-specific templates today.
Create your employment contractBefore You Begin: NH Employment Contract Checklist
Drafting an employment contract in New Hampshire requires attention to state-specific rules. This checklist helps you prepare key information and avoid common pitfalls.
- Verify worker classification: employee vs. independent contractor (NH uses the 'ABC test' for unemployment purposes, but other tests may apply).
- Gather standard employer details: legal business name, address, and federal employer identification number (EIN).
- Clearly define the employee's role, duties, and reporting structure—vague job descriptions are a common source of disputes.
- State the employment relationship as 'at-will' (unless otherwise specified) and note any probationary period, but be aware that at-will can't override an implied contract.
- Include compensation specifics: pay rate, overtime eligibility (FLSA applies), and pay schedule, ensuring compliance with NH's minimum wage (currently $7.25/hr, matches federal).
- Address confidentiality, non-compete, and non-solicitation clauses—NH law requires non-competes to be reasonable in scope and duration (judicial scrutiny applies).
- Remember that while notarization is generally not required for employment contracts, witness signatures are optional, but if the contract includes a personal guaranty or real estate transfer, notarization may be needed. For most contracts, just signatures suffice.
- Check if your business is required to report new hires to the NH Department of Employment Security within 20 days (mandatory for all employers).
Frequently asked questions
Do I need a written employment contract in New Hampshire?
No, New Hampshire generally follows 'at-will' employment, meaning either party can end the relationship at any time for any legal reason. However, a written contract can provide clarity and protect both parties by outlining terms like compensation, benefits, and termination conditions.
Can an independent contractor use an employment contract?
Yes, but it's known as an independent contractor agreement or freelance contract. This document clarifies that the worker is not an employee, which is crucial for tax and liability purposes. It should detail the scope of work, payment terms, and independence.
Are non-compete agreements enforceable in New Hampshire?
Yes, but they must be reasonable in scope, duration, and geographic area. New Hampshire courts will not enforce overly broad non-competes that impose undue hardship on the employee or harm the public. It's wise to consult an attorney.
What if my employment contract is missing a signature?
In New Hampshire, a contract is generally enforceable if it's clear that both parties intended to be bound, even if one signature is missing. However, a signed contract is much easier to enforce, so make sure both parties sign and date the document.