New Jersey’s Governor is gearing up for a crackdown on workers misclassified as independent contractors rather than employees. This could have a significant impact on lower-wage industries, as they are more likely to utilize independent contractors.[1]  New Jersey employers need to closely evaluate any individuals currently classified as independent contractors, by utilizing the Department of Labor’s three-part test to determine an individual’s independent contractor status. Corrective action should be taken, where applicable, in order to avoid potential fines and penalties. Where individuals are reclassified as employees, care should be taken to ensure that pay is aligned with both current salaries of comparable positions, as well as the competitive marketplace.

[1] NJ Poised to Crackdown on Employee Misclassification; Fox Rothchild LLP; July 23, 2019