New Jersey Independent Contractors—Are You Misclassified?

Many companies misclassify employees as independent contractors, often to avoid paying these individuals overtime compensation and/or employee benefits. This practice is illegal under both federal and state laws, which have strict rules outlining when an individual may be classified as an independent contractor. If it is proven that a worker has been misclassified as an independent contractor, the worker may be entitled to back wages, employee benefits, and additional damages.

Table of Contents

• What is being done about employee misclassification in New Jersey?
• New Jersey’s Independent Contractor Test
• Differences between independent contractors and employees.
• Free Employee Misclassification Consultation
• Do I Need to Act Now?
• Do I Have to Pay any Fees to the Attorneys?
• About Berger Montague

What is being done about employee misclassification in New Jersey?

Due to the number of complaints received from workers in New Jersey who believe they were misclassified as independent contractors, attorneys at Berger Montague are actively investigating these potential claims to determine if class and collective action lawsuits may be brought to help these workers recover the compensation owed to them.

New Jersey’s Independent Contractor Test

The ABC test is a simple three-part test that New Jersey uses to determine if a worker is an employee or an independent contractor. Under the ABC test, your employer must prove that all of the following are true:

• Part A: The worker is free from control or direction over their work;
• Part B: The work is outside the employer’s usual course of business or performed outside of their usual places of business; and
• Part C: The worker is customarily engaged in an independently established trade, occupation, profession, or business.
If an employer can’t prove all three parts of the ABC test, the worker is considered an employee.

Differences Between Independent Contractors and Employees

Here are some key indicators that help distinguish employees from independent contractors:

Employees

1. Control: The employer controls how, when, and where the work is done. The employer may issue rules or policies in an employee handbook that the employee is expected to follow.
2. Training: The employer provides training to the worker.
3. Tools and Equipment: The employer provides the tools, equipment, and materials needed for the job.
4. Payment: Employees are typically paid a regular wage or salary.
5. Benefits: Employees often receive benefits such as health insurance, retirement plans, and paid time off.
6. Work Hours: The employer sets or schedules the employee’s work hours.
7. Long-term Relationship: The relationship between the worker and employer is often ongoing and stable.
8. Integral Work: The work performed is a core part of the employer’s business.

Independent Contractors

1. Control: The worker has control over how, when, and where the work is done. An Independent Contractor may hire employees to work for them and choose which projects they work on or which customers to serve.
2. Training: The worker uses their own methods and does not receive training from the employer.
3. Tools and Equipment: The worker provides their own tools, equipment, and materials.
4. Payment: Independent contractors are usually paid per project or job.
5. Benefits: Independent contractors do not receive employee benefits.
6. Work Hours: The worker sets their own schedule or work hours.
7. Short-term Relationship: The relationship is often project-based or temporary.
8. Non-Integral Work: The work performed is not a core part of the employer’s business.

Remember, just because you receive a 1099 or signed an independent contractor agreement does not mean that you have not been misclassified. An employer cannot avoid liability for misclassifying its workers simply by having them sign an independent contractor agreement.

Free employee misclassification consultation

If you suspect that you have been misclassified as an independent contractor, we welcome you to contact us by using the form on this page for a free and confidential potential case evaluation.

Do I Need to Act Now?

Yes, if you believe that you have not received the wages or overtime pay you deserve you should act as quickly as possible. Through statutes of limitations, the law limits the time you have to bring suit. If you do not take legal action within the time provided by the applicable statute of limitations, some or all of your claims may be barred and recovery denied.

Do I Have to Pay any Fees to the Attorneys?

We are happy to talk with you about your potential claims free of charge. If we decide to represent you in a lawsuit, we will enter into a written contingent fee agreement with you. A contingent fee agreement means we only get paid if we win, and that we will receive our fees from the amount paid by the Defendant in the case.
Please contact us to discuss the details of your case. You may:

1. Use the contact form on this page.
2. Email info@bm.net
3. Call 800-424-6690
   Berger Montague attorneys are experienced in proving that employees have been misclassified as independent contractors and have successfully recovered significant amounts of back wages on behalf of hundreds of workers.

Berger Montague is one of the nation’s preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. The firm is active in the fields of antitrust, commercial litigation, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For more than 50 years, Berger Montague has played lead roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, Washington, D.C., and Wilmington, DE.