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