New Jersey’s standard for worker classification is the “ABC Test,” which places on employers the significant task of distinguishing between an employee and an independent contractor. The test presumes that a worker is an employee unless the employer can prove otherwise by satisfying all three prongs of the test prongs, which determine whether the worker (A) has freedom from control, (B) works outside the usual course of business, and (C) operates under an independently established business. Employee misclassification claims can be initiated by a single employee, as a class action lawsuit, or through a government audit by the New Jersey Department of Labor and Workforce Development (NJDOL).
Misclassification claims are high-stakes disputes for employers which can result in significant financial penalties for violations. The firm has represented employers in audits and investigations conducted by the NJDOL as well as before the Internal Revenue Service (IRS) and other state agencies. We have defended employers in lawsuits brought by individual or former employees who allege they were misclassified and denied the wages and benefits to which they were legally entitled. Our team also has the resources to defend against more complex lawsuits alleging company-wide misclassification practices which seek damages for unpaid overtime minimum wage violations, and benefits.
