The New Hampshire Supreme Court recently ruled in the case of the New Hampshire Division of State Police, impacting how back pay is calculated for reinstated employees. The court decided that overtime wages cannot be included as part of the back pay awarded to employees who have been reinstated after termination. This ruling affects not only the specific case of Thomas Owens, a former state trooper, but also sets a precedent for how similar cases may be handled in the future.
The case, officially titled Appeal of N.H. Div. of State Police, was filed under docket number 2025-0344. It arose after Thomas Owens was terminated from his position as a state trooper in 2019 for allegedly altering his timecard and for his conduct during the investigation. Owens appealed his termination to the Personnel Appeals Board (PAB), which reversed the decision, stating that his termination was unwarranted. The PAB found that while Owens had violated the Division's rules, he had merely displayed poor judgment and was reinstated with a suspension.
After his reinstatement, a dispute arose regarding whether Owens was entitled to receive back pay that included overtime wages. The PAB ruled that he should receive his expected overtime pay during the period of his termination, which led to the Division's appeal to the New Hampshire Supreme Court. The Division argued that overtime wages should not be considered as part of the “salary loss suffered” under the relevant statute, RSA 273-D:3, V.
The Supreme Court agreed with the Division's argument, stating that the PAB did not have the authority to award overtime pay as part of back pay for reinstated employees. The court emphasized that the statute clearly defines “salary loss suffered” as the fixed compensation an employee would have received, excluding any uncertain amounts such as overtime. The court's opinion, delivered by Justice Donovan, stated, “By its express terms, the statute’s specification that, when reinstatement is mandatory, it should occur ‘without loss of pay, provided that the sum shall be equal to the salary loss suffered’ seeks to preclude recovery of uncertain amounts beyond ‘the salary loss suffered.’”
The ruling has significant implications for public employees in New Hampshire. It clarifies that while employees may be reinstated after wrongful termination, the back pay they receive will not include overtime or extra-duty pay. This decision may affect how future cases are handled, particularly for public employees who work in roles where overtime is common.
Moving forward, this ruling sets a clear precedent that could influence similar disputes regarding back pay in the public sector. Employees who are reinstated after termination can expect to receive only their fixed salary and not additional compensation for overtime work. This decision may lead to more careful consideration of employment policies and practices regarding timekeeping and overtime assignments.
As for what’s next, the Division of State Police may proceed with further proceedings consistent with the Supreme Court's ruling. There is no indication in the opinion that the case will be appealed further, but the implications of this ruling will likely resonate within the state’s public sector employment practices.