A federal appeals court officially tossed out a state court’s summary judgment in a New Jersey putative class action case involving delivery drivers for Sleepy’s LLC, a New York-based mattress seller, who claim they were misclassified as independent contractors. The US Court of Appeals for the Third Circuit issued its opinion after a separate ruling on Jan 15 by the New Jersey Supreme Court that the state would use the “ABC” test to determine employment status.

The case will now go back to the district court in New Jersey.

“The case has drawn attention because it could curb the growing practice by employers of classifying workers as independent contractors,” according to the New Jersey Law Journal.

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