Ford Harrison: New Jersey Misclassification Laws Create Extreme Risk for Anyone Utilizing Independent Contractors | Practical Law
This Law Firm Publication by Ford Harrison addresses New Jersey Governor Phil Murphy's signing into law five bills that significantly increase liability for employers that misclassify independent contractors (the Misclassification Package). A5838 gives the Commissioner of Labor the ability to issue a stop work order against any company that does not comply with wage, benefit, or tax laws. A5840 amends wage and hour and tax laws to create joint and several liability for "Client Employers" and "Labor Contractors." Under A5839, a misclassification finding under any state wage, benefit, or tax law can result in the assessment of additional penalties on top of those provided by the statutes. A5843 creates a private cause of action for employees or contractors who are discharged or discriminated against for inquiring or complaining about misclassification. S4228 allows the Department of Treasury to provide the NJ Department of Labor and Workforce Development with tax information, audit files, returns, or other information that would help to investigate violations of the wage, benefit, or tax laws.