New Jersey Department of Labor and Workforce Development Statement on Contract Workers vs. Employees
New Jersey Department of Labor and Workforce Development Statement on Contract Workers vs. Employees
In response to Monday’s opinion letter (see below) issued by the U.S. Department of Labor (FLSA2019-6), which addresses whether certain service providers are employees or independent contractors under the federal Fair Labor Standards Act, New Jersey Department of Labor and Workforce Development Commissioner Robert Asaro-Angelo released the following statement:
“This opinion letter has zero effect on how the New Jersey Department of Labor enforces state laws regarding wage payment, minimum wage, overtime, earned sick leave, equal pay, unemployment compensation, temporary disability insurance benefits, or family leave insurance benefits. Under each of those laws a worker is presumed an employee, unless the putative employer can satisfy each element of the statutory three-part test for independent contractor status (commonly referred to as the ABC test), which is distinct from and much more rigorous than the standard referenced in the opinion letter. Governor Murphy and the Legislature have worked hard to improve economic security for New Jersey workers and their families. These rights are undermined when employees are misclassified.”
###