In New Hampshire, gig workers are classified as employees or independent contractors using multiple tests depending on the context, with no single ABC test across all laws; the NH Employment Security (NHES) applies an ABC test for unemployment insurance, while the NH Department of Labor (NHDOL) uses a seven-part economic realities test.​
Key Classification Tests
New Hampshire employers must navigate four distinct tests: NHES ABC test (A: free from control; B: work outside usual business; C: independently established trade), NHDOL’s seven-part test (control, permanency, investment, skill, profit/loss, integration, plus relation to employer), federal FLSA economic reality test (six factors like opportunity for profit and permanency), and IRS three-part common law test. Gig workers often qualify as contractors under FLSA if they control their schedules and use personal equipment, but fail ABC prong B if core to the platform’s business like rideshare driving. Misclassification risks back wages, taxes, and penalties under each regime.​
Gig Economy Implications
Platforms like Uber classify drivers as contractors in NH absent specific gig laws, but NHES ABC test presumes employee status unless all prongs met, impacting unemployment benefits. Federal DOL’s 2024 rule reinstated multifactor economic reality analysis, favoring contractor status for true gig flexibility without state override. No freelance protection act or gig-specific bills exist as of 2025, leaving workers without mandated contracts or benefits.​
Compliance Considerations
Workers’ comp excludes true independent contractors but requires coverage for employees, even part-time. Report 1099-NEC for contractors earning $600+ annually per IRS rules. Consult agency sites for audits, as tests yield varying results across taxes, wages, and UI.
SOURCES
[1](https://www.nhmunicipal.org/town-city-magazine/new-hampshire-town-and-city-march-april-2024/hr-report-employee-or-independent)
[2](https://www.patchandfitzgerald.com/news/are-you-an-employee-or-independent-contractor)
[3](https://www.mclane.com/insights/businesses-beware-misclassification-of-workers-as-independent-contractors-can-be-costly/)
[4](https://www.mclane.com/insights/decoding-the-rights-of-gig-economy-workers/)
[5](https://www.mclane.com/insights/independent-contractor-or-employee-avoiding-misclassification-issues/)
