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Since taking office, New Jersey Governor Phil Murphy has committed to battling worker misclassification, i.e., treating employees as independent contractors. Misclassifying employees as independent contractors can deprive workers of wages and benefits and also have tax ramifications too.
In 2018, New Jersey teamed up with the U.S. Department of Labor to take on worker misclassification. Last year, New Jersey passed a series of new laws targeting independent contractor misclassification.
And then last week, Governor Murphy was at it again. He signed a four-bill legislative package furthering state efforts to stop employee misclassification. Here’s what we’ve got.
- A5890– Concerns enforcement of employee misclassification (think: audit, fines, lawsuits, and stop-work orders).
- A5891 – Creates “Office of Strategic Enforcement and Compliance, ” a centralized office to coordinate workforce and labor-related efforts with $1 million to get it started.
- A5892 – Streamlines identification of employee misclassification and adds more fines for employer violations.
- A1171 – Requires the Commissioner of Labor and Workforce Development to create a statewide database of certified payroll information for public works projects.
Some local businesses may have cut some corners during the height of the COVID-19 pandemic to make ends meet. That might have included treating employees as independent contractors.
Hey folks, going forward, it’s not worth it.
Especially in New Jersey.