Independent Contractor Agreement New Jersey


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New Jersey Gov. Phil Murphy last week signed several bills to combat the misclassification of workers as independent contractors, not employees. The new executive orders expand the authority of the New Jersey Department of Labor and Workforce Development (DOL), create new requirements for businesses and expand penalties for misclassification of workers. We are unveiling the new laws, most of which came into effect immediately on January 20, and we recommend reviewing your practices in these areas. The plaintiffs at Sleepy`s were delivery drivers who filed a breach of contract complaint under the Employee Retirement Income Security Act (ERISA), the Family and Medical Leave Act (FMLA), the New Jersey Wage Payment Law (as well as the national wage laws of New York, Massachusetts, Maryland and Connecticut). They requested the cancellation of their independent contractual contracts and the reform of their employment contracts, the inclusion in the benefit plans led by Sleepy`s ERISA, damages for breach of their alleged FMLA benefits and damages for allegedly illegal deductions and wage bills. Sleepy moved to the summary assessment on the grounds that the workers were independent contractors. The U.S. District Court agreed and found that the facts “overwhelmingly demonstrate that the complainants were independent contractors” and therefore did not have viable employment rights.

The court used the so-called “Common Law Test” in its analysis, following the example of the U.S. Supreme Court at Nationwide Mutual v. D darden, an ERISA case. Compliance with this important new employment law should be on every New Jersey employer`s priority list for 2020. Now is the right time to make sure that New Jersey workers are properly classified as employees or independent contractors. A Gilchrist v. Div. de Employ. Dry., supra, 48 N.J. Super. at 158 years of age, the court found that the requirement that a person normally be exercised in an independent end, profession, profession or business requires “a business that exists and can continue to exist independently and outside the service relationship concerned.

The company must be stable and sustainable, the one that will survive the breakdown of the relationship. A review should determine whether a person can continue to exist independently and independently of the relationship involved. Client employers and contractors who make employers available to employers are now jointly liable for violations of New Jersey`s wage and hour laws and tax laws, including provisions of these workers` misclassification laws. In addition, the law now requires owners, directors, officers and managers who violate these laws while acting on behalf of an employer to violate New Jersey`s wage and hour and tax laws. Working as an independent contractor gives you the freedom to do the work you love, without the constraints of traditional employment. But this freedom has a certain price – you forego appropriate access to an amount of listening to labour rights. Many real contractors are willing to accept this award, but what happens if you are wrongly classified as an independent contractor? Your employer may misre qualifie you as an independent contractor, not a worker, in order to avoid certain benefits and grant you certain rights.