Keeping independent contractor relationships ‘independent’ in New Hampshire

Whether a company is a start-up, in growth mode, or looking to hire out-of-state workers, it may face a dilemma about whether to bring on a new worker as an employee or an independent contractor. That distinction is important because independent contractors don’t receive overtime pay or unemployment benefits, aren’t covered by the company’s workers’ compensation insurance, and are fully responsible for paying taxes. They generally aren’t protected by antidiscrimination and other laws either. In most cases, the appropriate choice is to hire the worker as a W-2 employee. But for many reasons—maybe because the worker wants more flexibility or the company only needs short-term help—each might think entering an independent contractor relationship is best. But not so fast.

Independent contractors in New Hampshire

Under New Hampshire law, workers are considered employees unless (with limited exceptions) they can satisfy the criteria listed in NH RSA 281-A:2 VI(b). That is, to be considered independent contractors, workers must: