New Jersey Gov. Phil Murphy signed several bills on Monday that are aimed at fighting independent contractor misclassification.
“We cannot build a stronger and fairer economy without strong workplace protections that ensure fairness for employees,” Murphy said in a statement.
The bills signed on Monday by Murphy include:
- A5838, which concerns stop work orders.
- A5839, which concerns penalties for misclassification of employees.
- A5840, which concerns joint liability for payment of employer tax law.
- A5843, which requires employers to post notice for employees on employee misclassification.
- S4226, which permits the New Jersey Department of Labor and Workforce Development to post information on persons who violate state wage, benefit and tax laws.
- S4228, which concerns tax data sharing between the state treasury and the Department of Labor and Workforce Development.
“These new mandates will work in concert to stem the practice of misclassification together with expanding stop-work orders beyond those for construction trades and prevailing wage, and requiring tax data to be shared between the state Department of Treasury and Labor to support more comprehensive investigations,” according to a joint statement by nine members of the New Jersey Assembly.
Labor Commissioner Robert Asaro-Angelo said the bills will protect employees who are misclassified as independent contractors and help firms that play by the rules.
“Gov. Murphy has positioned New Jersey to be a leader in the fight against illegal misclassification by giving the Labor Department powerful new compliance and enforcement tools,” Asaro-Angelo said.
However, the most controversial proposed bill, S4204, which sought to tighten the state’s ABC test for classifying independent contractors, did not make it to the governor’s desk, NJ.com reported.
A report out this summer by Gov. Muprhy’s Task Force on Employee Misclassification said improperly classifying employees as independent contractors has grown 40% in the last 10 years.