It's Throwback Thursday where a new report released by Governor Phil Murphy reminds us to revisit past posts. In this case, the Are Your Independent Contracts Really Independent? blog post (published May 2018) that stated a new task force would be formed to investigate the misclassification of employees as independent contractors. In an audit of one percent of New Jersey businesses, New Jersey Department of Labor found that 12,315 workers were misclassified, resulting in $462 million in underreported wages! Governor Murphy is planning on signing a bill that would allow the government to shut down a business where the misclassifications are “sufficient.” The full task force report can be found here. It is imperative that employers ensure that all of their workers are properly classified. Classifying an individual as an independent contractor and paying them as such does not make that individual an independent contractor. They must meet the ABC test that New Jersey uses!
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