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Using an Independent Contractor in New Jersey?


New Jersey Department of Labor made an announcement on August 10 about a memorandum of cooperation with the U.S. Department of Labor. The target of this cooperation, you guessed it, - independent contractor vs. employee classifications.


New Jersey's strict “ABC Test” (N.J.S.A. § 43:21-19(i)(6)(A)-(C)). Under this test, the independent contractor must: (A) be free from control or direction; (B) perform services outside the scope of services offered in the usual course of business; and (C) be customarily engaged in an independently established trade, occupation, profession or business. Consider auditing your relationships with individual contractors to make sure they pass this test.

 

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