Monday, 11 May 2015 00:00

New Hampshire Employment Bill Awaits Vote by State Senate

In New Hampshire, an employment bill that clarifies the definition of an employee and an independent contractor is awaiting a vote by the state Senate Commerce Committee by June 4.

HB 450 was first introduced to the House of Representatives Labor, Industrial and Rehabilitative Services Committee on January 8, 2015. After a public hearing later that month, the bill was amended and adopted by the House on March 12. It was referred to the Senate Commerce Committee on March 19.

The bill would create a uniform definition of the word employee with a list of criteria to determine employment status for worker’s compensation and unemployment compensation.

The bill defines an independent contractor as an individual who:

  • has the right to control the detailed means and manner of the work except as to final results;
  • has the opportunity for profit and loss as a result of the services being performed;
  • performs services that the individual is customarily engaged in as an independently established trade, occupation, profession or business;
  • hires and pays the individual’s assistants; and
  • receives payment based on factors directly related to the agreed scope of work performed. In addition, the bill states that at least three of the following criteria must be met:
  • The individual has a substantive investment in the facilities, tools, instruments, materials and knowledge used to complete the work;
  • The individual Is responsible for satisfactory completion of the work and may be held contractually responsible for failure to complete the work;
  • The parties have a written contract that defines the relationship and gives each party contractual rights in the event the contract is terminated by the other party prior to completion of the work;
  • The work is outside the usual course of business of the hiring unit; or
  • The individual has been determined to be an independent contractor by the federal Internal Revenue Service (an SS-8 determination)Autobody News will continue to follow this story and report on the outcome of the Senate vote.

A copy of Bill HB450 is available online: https://legiscan.com/NH/text/HB450/id/1219378/New_Hampshire-2015-HB450-Amended.html

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