The misclassification of employees as independent contractors is a violation of New Hampshire law and fundamentally undermines New Hampshire’s strong business climate.  By driving higher unemployment and workers’ compensation costs for the overwhelming majority of businesses that follow the law, misclassification creates a competitive disadvantage for those law-abiding businesses.

More importantly, it leaves employees without important benefits, such as workers’ compensation, which they are entitled to receive under the law.  Plain and simple, the misclassification of employees is fraud, and it is illegal. By reducing the instances of misclassification, we will help to level the playing field for businesses that play by the rules.  Those who misclassify workers do not pay their share of unemployment taxes, which means businesses that follow the law and the taxpayers are subsidizing those who are perpetrating this fraud.

Misclassification deals primarily with hiring practices used by some employers to avoid obligations they have under the law. These obligations include providing workers’ compensation coverage, unemployment coverage and other taxes, withholdings and benefits for their workers. This serves to weaken our economy and creates a negative business climate. (click on link to read full story)