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Law tightens up contractor definition
Beginning today, a new state law will require employers to start posting at their job sites a definition that determines who is an independent contractor.
Posters are available for free from the state Department of Labor. They can also be printed at the DOL website.
The poster is supposed to help clear up the confusion over whether employees should be salaried and have unemployment and workers’ compensation premiums deducted from their pay as well as taxes.
Under the new law, to be considered an independent contractor, a person must meet all the five of the following criteria:
• Have his own federal Taxpayers ID or Social security number
• Has control and discretion over the means and manner of performance of the work, control over the time when the work is to be performed
• Holds himself or herself out as being in business for him or herself and is not required to work exclusively for the employer
The law, part of a larger package addressing the thorny issue, easily passed both houses of the Legislautre last session and was signed by Gov. John Lynch on June 18. – BOB SANDERS
