NH misclassification fines shed light on multi-state workforce concerns
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A Massachusetts construction company working on a hotel project in Keene was recently hit with more than $64,000 in fines after an audit conducted by the New Hampshire Department of Labor. The bulk of the fines were related to the misclassification of employees as independent contractors, but there were also a number of recordkeeping violations found.
It is clear that a significant percentage of the fines were the result of the employer trying to pass individuals off as independent contractors, a very difficult burden to meet under New Hampshire state law and an issue which has plagued the construction industry for years. The result of the audit and the fines imposed on the company, however, showcase how difficult it is for businesses that typically do not operate in a state to establish a workforce there and be in compliance with state laws.