Bill Text - HB532 (2020)

Relative to payment for earned but unused vacation or personal time.


Revision: Feb. 28, 2020, 1:13 p.m.

HB 532 - AS AMENDED BY THE HOUSE

 

8Jan2020... 2851h

2019 SESSION

19-0331

04/01

 

HOUSE BILL 532

 

AN ACT relative to payment for earned but unused vacation or personal time.

 

SPONSORS: Rep. Cahill, Rock. 17; Rep. Renzullo, Hills. 37; Rep. Ley, Ches. 9; Rep. Spang, Straf. 6; Rep. Cordelli, Carr. 4; Rep. Camarota, Hills. 7; Sen. Fuller Clark, Dist 21

 

COMMITTEE: Labor, Industrial and Rehabilitative Services

 

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AMENDED ANALYSIS

 

This bill requires an employer to pay its employees for earned but unused vacation time.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

8Jan2020... 2851h 19-0331

04/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to payment for earned but unused vacation or personal time.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Section; Day's Work; Days of Rest; Vacation Time.  Amend RSA 275 by inserting after section 35 the following new section:

275:35-a  Vacation Time.  An employer that offers paid vacation time to its employees shall comply with the following:

I.  Inform employees in writing of any policy regarding accrual or use of vacation time and any limits on accrual or use.  In the absence of an accrual system, unused time shall be paid on a prorated basis.

II.  Provide a means through which vacation time requests and approvals are processed.

III.  Provide employees with an accounting of vacation time used and vacation time remaining.

2  New Paragraph; Protective Legislation; Wages.  Amend RSA 275:43 by inserting after paragraph V the following new paragraph:

V-a.  Upon termination of employment for any reason, an employer shall, no later than the next regular pay period, pay an employee for unused vacation time.

3  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

19-0331

Amended 2/27/20

 

HB 532- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2019-2851h)

 

AN ACT relative to payment for earned but unused vacation or personal time.

 

FISCAL IMPACT:      [    ] State              [ X ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

COUNTY:

FY 2020

FY 2021

FY 2022

FY 2023

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

METHODOLOGY:

This bill requires an employer to pay its employees for earned but unused vacation time.  The Department of Administrative Services indicates this bill would not affect State expenditures because the State is not required to comply with the requirements of RSA Chapter 275.  In addition, the State already meets the requirements of the bill by having  written policy that is shared with all employees, a process for vacation time requests and approval, and an accounting of vacation time used and remaining.  Existing State personnel rules already provide for payment of used vacation time upon separation of employment.

 

The New Hampshire Municipal Association states the requirement to pay employees for unused vacation time upon termination may cause an increase in municipal expenditures as employers are not currently required to make such payments.  Any impact on a municipal expenditures  cannot be determined because the Association does not have information about municipalities' practices with respect to payment for unused vacation time.  There would be no impact on municipal revenue.

 

The New Hampshire Association of Counties indicates the bill would increase county government expenditures by an indeterminable amount.  The Association indicates there are circumstances described in current county policies where unused vacation time is not paid upon termination, such as when an employee quits without notice.  There would be no impact on county revenue.

 

AGENCIES CONTACTED:

Department of Administrative Services, New Hampshire Municipal Association and New Hampshire Association of Counties