Employment Law Blogs, Human Resources, New Jersey

New Jersey Tightens Employee Classification Laws

Hey Compliance Warriors!

New Jersey is cracking down on misclassification of employees with several laws bring put forth to clarify the definition of being an independent contractor vs an employee. For the legal details, Read On…

Article Via: seyfarth.com

“As part of a package of six laws pertaining to independent contractor misclassification, New Jersey passed Assembly Bill 5843, requiring employers “to conspicuously post notification, in a place or places accessible to all employees in each of the employer’s workplaces,” which is now available here, pertaining to the following:

1. An explanation of the prohibition for employers to misclassify its workers;

2. The standard that is applied by the Department of Labor and Workforce Development (“LWD”) to determine whether one is an employee or an independent contractor. The LWD’s current test is as follows:

a. The individual has been and will continue to be free from control or direction over the performance of work performed, both under contract of service and in fact;

b. The work is either outside the usual course of the business for which such service is performed, or the work is performed outside of all the places of business of the enterprise for which such service is performed; and

c. The individual is customarily engaged in an independently established trade, occupation, profession or business.

3. The benefits and protections to which an employee is entitled under State wage, benefit and tax laws;

4. The remedies to which workers affected by misclassification may be entitled under New Jersey law; and

5. Information on how a worker or a worker’s authorized representative may contact, by telephone, mail and e-mail, a representative of the commissioner to provide information to, or file a complaint with, the representative regarding possible worker misclassification.

The law also prohibits an employer from retaliating against a worker who complains to his/her employer or the LWD regarding possible worker misclassification.

For more information about the other protections for independent contractors passed as a part of this series of laws, including stop-work orders and financial penalties, and joint and individual liability for misclassification, please see our prior post here.”

For More Information Follow This Link


Lisa Smith is CEO of Andere Corporation and Chief Content Developer at HelpDeskSuites.com. Follow her on Twitter, connect with her on LinkedIn, listen to her Small Business Spoonfuls Podcast, and find more in her Compliance Warriors Facebook Group.

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