Building on efforts that began early in his tenure, Governor Murphy of New Jersey recently signed four bills into law that expand the power of the state to identify and combat alleged worker misclassification.
On July 8, Governor Murphy signed four bills into law that are intended to help the state identify and penalize employers who misclassify employees as independent contractors:
These laws continue efforts to address worker misclassification that Governor Murphy began as early as May 2018 when he created his Misclassification Task Force, which paved the way for his first round of misclassification laws in January 2020 (A-5839; A-5843; A-5840; and A-5838), which also strengthened enforcement efforts and laid the groundwork for the 2021 laws.
In view of this recent legislation, New Jersey employers should re-examine their independent contractor agreements, business models, and policies to ensure that they are not at risk for liability under these new laws. If you need help or have questions about how these new laws affect your business, please contact an author of this post or the Hogan Lovells lawyer with whom you typically work.
Authored by David Baron and Shannon Finnegan*.
*Shannon Finnegan, an author of this post, is a Law Clerk in the New York Office.
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