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No More Misclassification: New Jersey Draws the Line

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August 11, 2021 | Legal Alert
Adam Gersh, Kelly Barry

On July 8, 2021, New Jersey Governor Phil Murphy signed four bills aimed at cracking down on employers who misclassify independent contractors as employees.  In a press release, the Governor’s office lauded this legislative package as a continuation of Governor Murphy’s goal to provide tools for tackling employee misclassification, which began with the Governor’s 2018 Executive Order that created the Misclassification Task Force.  Here are the highlights of each bill passed: 

This package is the latest in a series of measures aimed at curbing employer wage and hour law abuses and misclassification.  The takeaway for employers is that the State’s enforcement toolbox continues to expand, creating additional risks for employers who are found to misclassify workers.  In this context, employers should note that New Jersey uses the “ABC test”, which is more stringent standard for determining whether a worker is an independent contractor or employee than the standard applied in many other jurisdictions.   

If your business needs assistance navigating these changes and ensuring compliance, consider contacting Adam Gersh or Kelly Barry at Flaster Greenberg, or any member of Flaster Greenberg's Labor & Employment or Business & Corporate Departments. 

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