Compliance » Worker-Friendly Independent Contractor Test For NJ

Worker-Friendly Independent Contractor Test For NJ

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January 27, 2015

The New Jersey Supreme Court has made it harder for an employer to claim  independent contractor as opposed to employee status for workers. An employee alert from DLA Piper summarizes the unanimous opinion, in which the court ruled that a so-called ABC test would apply. Using that test, an employee would have to demonstrate that the worker is free from the company’s control in performing the services, performs work outside the usual course of the company’s business or outside the company’s place of business, and is engaged in an independently established business. Failure to establish even one of these three conditions will mean the worker would be classified as an employee and not a contractor.

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