The following is a statement from Paul Sonn, State Policy Program Director, NELP
The National Employment Law Project applauds Governor Mikie Sherrill and the New Jersey Department of Labor and Workforce Development (NJDOL) for taking action to protect New Jersey workers from being stripped of their basic employment law protections – like the minimum wage and paid sick leave. At a time when the Trump administration is trying to roll back these safeguards, it’s crucial that state leaders are standing strong and protecting U.S. workers.
The NJDOL finalized a rule that reaffirms the straightforward “ABC test” as the proper test for determining who is an employee under New Jersey’s employment laws. In recognition that most working people work for someone else and are not in business for themselves, the ABC test properly starts with a presumption of employment, which is rebutted if three factors are met. This rule will ensure that all people who work for someone else are protected by New Jersey’s employment laws, including the minimum wage, overtime, and paid sick leave, and have access to critical benefits like unemployment insurance and workers’ compensation.
The rule will help prevent misclassification of employees as independent contractors – a practice that degrades wages and working conditions, exacerbates racialized inequities because people of color and immigrants are overrepresented in the low-wage and precarious jobs where misclassification is endemic, and makes it difficult for law-abiding employers to compete. The rule’s clarity also ensures that legitimate independent contractors can continue to operate and grow their businesses.
Now we urge the NJDOL to enforce the law and make clear that New Jersey will not tolerate low-road employers that shirk their obligations to their employees and the state.
