Proposed independent contractor definition makes its way to full N.H. House

From the New Hampshire Business Review, Bob Sanders writes about a number of bills that are making their way through the New Hampshire legislature as well as some that are not.  He reports that a bill to define an independent contractor has been favorably acted on by the House Labor Committee.  He writes:

The House Labor Committee has apparently found the holy grail – a single definition of an employee, or rather, when an individual is not an employee, but an independent contractor. It has recommended by a 16-4 vote that the full House agree to it on Wednesday.

Employers, particularly in the building trades, have complained for years about the confusion caused by different definitions when it comes to workers’ compensation and unemployment, as well as such things as the minimum wage law and the Whistleblowers Act. Previous definitions had from five to 11 different criteria.

House Bill 450 as amended has 10, but only eight have to be met.

In order not to be considered an employee, an independent contractor would have to meet all of the following requirements: control the manner of work; have the opportunity for profit and loss; perform services customarily engaged in as an independent established trade; hire and pay his own assistant; and get paid based on the agreed scope of work performed.

In addition, the contractor would have to satisfy three of the following five criteria: have substantial investments in facilities, own tools and instruments; be held to a satisfactory completion of work; have a written contract; perform work outside the usual course of business of the hiring unit; work outside the hiring unit’s place of business; or the Internal Revenue Service has classified him or her as an independent contractor.

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