Major Changes Ahead: New Jersey Eyes New Rules Clarifying Test For Worker Classification

New Jersey may adopt new worker-friendly regulations for determining whether a worker is an independent contractor or employee that could make it very difficult for businesses to demonstrate that workers are independent contractors and open the door to additional liability for misclassification.

Quick Hits

• New Jersey will consider new regulations that could significantly limit the classification of workers as independent contractors by clarifying the state's "ABC test" for determining employment status.
• The proposed rules aim to define the control, independence, and business engagement of workers, raising concerns among business groups about increased liability for misclassification.