NJ Worker Misclassification Now Carries New Penalties Here's What You Need to Know
Has NJ Enacted New Additional Legislation Regarding Worker Misclassification? Yes - Governor Phil Murphy signed a new legislative package on January 20, 2020 addressing worker misclassification.
What Are the Primary Goals of New Laws? The bills are aimed at preventing employee misclassification in businesses by allowing stop-work orders against employers violating state wage, benefit, and tax law; providing assessment of penalties for violations in connection with misclassification of employees; and requiring employers to post a notice for their employees regarding employee misclassification, among others. While most businesses don’t intentionally misclassify workers, it’s easy to do if you don’t understand what makes up New Jersey’s “ABC Test” for classifying workers.
What is the “ABC Test” of Worker Misclassification? Per New Jersey Unemployment Compensation Law, a worker should be considered an employee unless all the following circumstances apply:
Employers must understand that once an individual provides remunerated services, this constitutes employment, unless the services are exempt or the statutory requirements for the ABC test have been met.
What New Bills Have Been Signed Into Law? |
USER LOGINS:
eHR User Access
Business Access
EmployeeXperience®
COVID-19 Info