1099 Risk Blog

New Hampshire Added To List of States Cracking Down on Contractor Misclassification

New Hampshire can now be added to the list of states (including CA, NY, and MA), putting together special task force initiatives to crack down on improper contractor classification.

As reported in today's Nashua Telegraph:

"Labor Commissioner George Copadis said Wednesday his department has received enough complaints about the practice that it is has teamed up with four other state agencies, including the attorney general’s office and the Department of Revenue, to look in to how big the problem really is.

"'What we’re trying to do is get the word out there that this classification issue is going to be addressed,' Copadis said. 'That’s one of the areas that we’re seriously looking at.'

"Under New Hampshire state law, a person is presumed an employee unless he or she meets a list of all 12 requirements for independent contractor status. Independent contractors are typically paid more per hour than employees, but they’re cheaper to employ because they don’t have to be covered under expensive workers’ compensation policies.

. . .

"According to Copadis, the labor commissioner, the five state agencies that are affected by labor misclassifications have started meeting regularly to discuss the problem and are conducting construction site inspections jointly. Those agencies also include the state Department of Employment Security and the state Insurance Department.

"When an employee is incorrectly labeled as an independent contractor, the state loses tax money and insurance companies don’t pay the claims they should, Copadis said."

Get the full story here.

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