Pay still due after firing
Published 01/21/05

  When a New Hampshire employer fires a salaried worker, generally it will have to pay the worker for that entire pay period even though the worker only worked a portion of the period.

However, if the worker quits prior to the end of the pay period, an employer may prorate the salary to a daily basis. Effective January 1, 2005, the law was changed to allow employers to prorate salaries to a daily basis when a salaried worker is fired for cause by the employer prior to the end of the pay period. When in doubt as to whether the reason for the firing was "for cause", it would be wise for the employer to speak with its company's employment counsel.

For a salaried worker who is terminated during a pay period and is only paid through her last day of work but also receives a severance payout in consideration of a settlement agreement and release that she signed, she would be well served to retain her own employment counsel for legal advice prior to filing a Department of Labor complaint in that such a severance payment could be considered as a credit towards any salary claim.

Furthermore, filing such a claim with the Department of Labor may be a breach of the settlement agreement which, as a contract, would generally be enforced by the employer in Court rather than at the Department of Labor subjecting the worker to potential breach of contract damages being owed to the employer for that breach of the settlement agreement.

J. Daniel Marr is a director and shareholder at Hamblett & Kerrigan, P.A. His legal practice includes counseling businesses and business persons on a variety of legal issues, including employment, and advocating on their behalf. You can reach Attorney Marr by e-mail at: dmarr@hamker.com

This information is general information and may not reflect the most current legal developments, verdicts or settlements. The information provided should not be relied upon as an indication of the actual state of the law or of future developments. The information contained on the Hamblett & Kerrigan website is for informational purposes only and does not constitute legal advice. If the information referenced may be of legal importance to you, you should consult with an attorney to provide you with legal guidance and opinion as the the effect of the current law upon your situation.