New Hampshire Cracking Down on Workers’ Comp Misclassifications

Four New Hampshire agencies are working together to catch companies that illegally misclassify workers as independent contractors to avoid paying workers’ compensation insurance and unemployment taxes.

The departments of labor, employment security, insurance and revenue are joining the crackdown. Labor Commissioner George Copadis says the illegal practice denies workers basic rights as employees and hurts the competitiveness of law-abiding businesses.

Complaints often are received about misclassified workers in the building trades.

Businesses and individuals that knowingly defraud insurers on workers’ compensation may face insurance fraud chargers. Companies that don’t provide proper workers’ compensation coverage also may face fines and criminal charges.

Businesses not paying unemployment taxes also face fines and possible tax penalties.