On November 7th a bill was introduced in the New
Jersey legislature that would, like California's AB 5 (see our
previous blog here), codify a stricter
version of the ABC test for determining independent contractor
classification. The bill, S4204 (text available here), also affirms New Jersey
courts' use of the ABC test under the state's unemployment
law, Wage and Hour Law, Wage Payment Law, and other contexts.
Similar to California's AB 5, the New Jersey bill would go
much further than merely codifying past practice. Indeed, S4204
would not only codify the ABC test as used by New Jersey courts in
the past, it would adopt a stricter version of the ABC test,
thereby making it more difficult for companies to classify workers
as independent contractors. Under the current version of the ABC
test, an individual is considered an employee of the company he or
she is working for unless:
