On November 22, 2023, Governor Hochul signed into law the New York Freelance Isn’t Free Act, which mandates written contract, payment, record keeping, and anti-retaliation requirements on businesses that hire freelance workers. The Act is similar to New York City’s Freelance Isn’t Free law that was enacted in 2017, however, the State version is broader in scope and applies statewide. It becomes effective on May 20, 2024.
Read MoreOn January 10, 2024, the U.S. Department of Labor (USDOL) published its final rule defining “independent contractor” under the Fair Labor Standards Act (FLSA). The final rule becomes effective March 11, 2024. The final rule rescinds the USDOL’s 2021 rule, which had arguably expanded the definition of an independent contractor under the FLSA. The USDOL has also published “Frequently Asked Questions” about the final rule.
Read MoreUtilizing independent contractors in New Jersey can be very risky given New Jersey’s broad definition of employee and the significant penalties imposed for the misclassification of employees as independent contractors. Recently, New Jersey continued its push against worker misclassification with the enactment of a package of bills that expand the power of the New Jersey Department of Labor (NJDOL) to enforce state wage, benefit, and tax laws. The new bills also enhance the penalties for employers that misclassify workers as independent contractors.
Read MoreAs we previously posted, under Governor Murphy’s administration, New Jersey has actively sought to end the misclassification of employees as independent contractors. On January 20, 2020, New Jersey enacted five new laws, called the “Misclassification Package,” that substantially increase the New Jersey Department of Labor’s (NJDOL) enforcement powers in misclassification matters.
Read MoreNew Jersey employers that utilize independent workers will likely soon find the State looking over their shoulders to see if such workers were properly classified as independent and to collect unpaid taxes for any misclassified workers.
On August 10, 2018, the New Jersey Department of Labor announced that it had entered into a worksharing agreement with the United States Department of Labor to end employee misclassification in New Jersey. According to the press release, misclassification of employees has cost New Jersey over $80 million in employer tax contributions since 2010.
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