New Jersey Prohibits Worker Misclassification
Posted on June 1, 2020 byLaborLawCenter™
State Update Overview
|Date Updated||May 2020|
|Labor Law Update||The New Jersey Labor Law Poster is now updated with a new Worker Misclassification Notice|
|What Changed||This brand new notice prohibits improperly classifying employees as independent contractors.|
|Mandatory or Non-Mandatory||Mandatory|
|Updated Poster||New Jersey Labor Law Poster|
In May 2020, the New Jersey Department of Labor and Workforce Development introduced a new notice prohibiting worker misclassification. Misclassification is the practice of an employer improperly classifying employees as independent contractors. This protection is important because:
• Misclassification may illegally deprive workers of basic rights, protections, and benefits guaranteed to employees such as the right to be paid the minimum wage, the right to overtime pay, time and mode of pay protections, the protection against illegal deductions from pay, unemployment compensation, temporary disability benefits, family leave insurance benefits, workers’ compensation, family leave and earned sick leave.
• Often when workers are paid in cash “off the books”, it may be a method to hide misclassification or other employment related legal obligations.
The new notice sets the criteria to determine if a hired individual classifies as an “employee” or “independent contractor”. Failure of an employer to correctly classify could result in fines and penalties.
All businesses within the State of New Jersey must display the new Worker Misclassification Notice along with other state-mandated posting requirements where it is sufficiently accessible and viewable to all employees. This change has been reflected in our New Jersey & Federal Labor Law Poster and does require an immediate mandatory update. Failure to meet compliance and display the updated poster could result in fines.
Order the New Jersey Labor Law Poster to immediately include this required update.
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