We covered this important issue in July. Here's an update.
A new bill could classify thousands of New Jersey independent contractors, freelance and gig economy workers as employees — a measure that could profoundly impact businesses that rely on such workers, including ride share and food delivery services, to name a few.
In New Jersey, independent contractors are not typically afforded the same rights as employees, such as wage and hour protections, paid sick leave and unemployment benefits. That has led businesses to illegally mis-classify their workers as independent contractors.
The bill, which was introduced Nov. 8 and scheduled for a Nov. 14 vote in the Senate Labor Committee, would tweak two of the three prongs in the “ABC test,” which is used to separate employees from independent contractors. These are:
“A” - the worker is free from any direction or control from the company.
“B” - the work falls outside a company’s “usual course of business."
“C” - the worker must be engaged in their own established and separate business.