New Hampshire Severance Agreement Template & Requirements (2026)

State-specific Severance Agreement requirements for New Hampshire employers. Penalties for non-compliance: $50,000 - $1,000,000+.

What Is a Severance Agreement?

Agreement providing severance compensation in exchange for a release of legal claims against the employer. In New Hampshire, this document must comply with state-specific requirements that differ from federal standards and from other states.

Employers offering severance to departing employees in New Hampshire faces unique legal requirements. Failing to use the correct New Hampshire-compliant version of this document exposes your business to liability up to $50,000 - $1,000,000+.

New Hampshire-Specific Severance Agreement Requirements

New Hampshire has specific requirements for severance agreements that go beyond federal minimums. All employers in New Hampshire must ensure their documents reflect current state law.

Key New Hampshire compliance points: No mandatory paid family leave (state program is voluntary). No state income tax on wages.

New Hampshire Compliance Snapshot

Minimum Wage (2026)
$7.25/hr
At-Will Employment
Yes
Update Frequency
Per termination event

Key Clauses Your New Hampshire Severance Agreement Must Include

A severance agreement that is missing any of these elements may be unenforceable or create liability in New Hampshire.

  • Severance amount and timeline
  • Release of claims
  • ADEA waiver (21-day review for 40+)
  • Non-disparagement
  • COBRA notification
  • Return of property
  • Reference policy

Common New Hampshire Severance Agreement Mistakes That Lead to Lawsuits

  • Using a generic template not customized for New Hampshire - state law overrides federal minimums
  • Not updating the document when New Hampshire law changes (required per termination event)
  • Failing to have employees sign and date the document before their start date
  • Missing New Hampshire-required disclosures or notices that must be included
  • Not retaining signed copies for the required retention period

FAQs: New Hampshire Severance Agreement

While severance agreements are not universally required by New Hampshire law, they are strongly recommended. Without one, employers lose critical legal protections. Invalid severance agreements have resulted in $4.2 billion in employment litigation in 2025.
A compliant New Hampshire severance agreement must include: Severance amount and timeline, Release of claims, ADEA waiver (21-day review for 40+), Non-disparagement, COBRA notification, Return of property, Reference policy. Additionally, New Hampshire requires: No mandatory paid family leave (state program is voluntary). No state income tax on wages.
Start with a New Hampshire-specific template (not a generic one). Add your company name, employee details, and compensation. Ensure you comply with New Hampshire's minimum wage of $7.25/hr and at-will status (yes).
Using a non-New Hampshire-compliant severance agreement can render the document unenforceable and expose you to penalties of $50,000 - $1,000,000+. Courts in New Hampshire have rejected out-of-state templates that don't include required state disclosures.
Per termination event. New Hampshire employment laws changed in 2025 and 2026 - ensure your documents reflect current law. Our templates are updated annually.