New Jersey Sharpens Focus on Misclassification Issues, Inches Closer to Adopting “ABC Test” Regulations: What Businesses Need to Know
As independent contractor misclassification enforcement eases up at the federal level, New Jersey is doubling down on the state’s strict test for determining how a worker should be classified under various state laws. The New Jersey Department of Labor and Workforce Development (NJDOL) just took the first major step toward codifying how the agency interprets the “ABC test” and evaluates independent contractor relationships – a move that will not make it easier for New Jersey businesses to treat workers as contractors but will at least provide some much-needed guidance to help you stay compliant. Here’s everything you need to know and three steps you can take next. Quick Background on New Jersey’s Independent Contractor Rules For New Jersey business owners, p roperly classifying workers as employees or independent contractors has long presented legal and operational challenges. Here’s why: New Jersey uses the stringent “ABC test” for determining whether a worker can be classified...