The New Hampshire Department of Labor recently decided a wage claim against an employer who had handed out to its employees a paragraph that was to be inserted into the employee handbook. The paragraph said that if an employee became employed by a competitor they would forfeit all vacation, sick and personal time accrued. The employee in question denied ever receiving the addendum to the handbook but both sides agreed he had never signed anything acknowledging receipt of that change. When the employee was denied over $3,000 in vacation and sick time he appealed to the Department of Labor and it ruled in his favor.

Under New Hampshire law, the employer must obtain a signed notification from an employee reflecting a change of its practices or policies affecting paid vacations, holidays, sick leave, bonuses, severance pay, personal days, payment of employee expenses, pensions or other fringe benefit for it to be effective. That does not mean the employee can negate the employer’s changes but the employee must acknowledge receipt of the change.

A waitress waited on tables during the week but when she asked to pick up extra shifts on the weekend she agreed to work only for tips until business picked up. After she worked for several hours over weekends she filed a wage claim for unpaid compensation. The New Hampshire Department of Labor hearing officer held that despite the oral agreement that she was only working for tips, the employer was not relieved of its obligation to pay an hourly wage. The waitress was awarded almost $4,000 for the weekends she worked over the year.

Because the employer had not kept accurate employee records it was not able to reduce the amount she claimed she was owed. Employees should get whatever their compensation understandings are in writing. Otherwise, you can end up hoping that you win a Department of Labor hearing. Of course, the employer has the duty to reduce the deal to writing and keep accurate records, though many small employers don’t do that.