Trenton, NJ – Governor Phil Murphy recently signed a legislative package combatting worker misclassification and exploitation. The bills will crack down on employee misclassification in businesses by allowing stop-work orders against employers violating state wage, benefit, and tax law; providing assessment of penalties for violations in connection with misclassification of employees; and requiring employers to post a notice for their employees regarding employee misclassification, among others.
Since day one, taking on the practice of misclassification has been a top priority for the Murphy Administration. In May 2018, Governor Murphy signed Executive Order No. 25, which established the Task Force on Employee Misclassification. He later released a comprehensive report from the Task Force which included sixteen recommendations for both executive actions and relevant legislation. His administration has already made significant progress on responding to the Task Force’s recommendations to curtail the widespread and illegal practice of misclassifying workers, including through improving cross-training between departments and cooperation with neighboring states.
“We cannot build a stronger and fairer economy without strong workplace protections that ensure fairness for employees,” said Governor Murphy. “I am proud to sign these bills today to curb this unethical and illegal practice that hurts our working families and exploits New Jersey’s workers.”
“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,” said Labor Commissioner Robert Asaro-Angelo. “These bills protect employees who are misclassified as independent contractors as well as independent contractors improperly treated as employees, and provide critical support for employers who play by the rules. These bills contain important work rights and protections for both our state’s employees and their employers. Thank you to the dedicated leadership of my colleagues on the Misclassification Task Force, which formulated the recommendations for this package of legislation.”
The Governor signed the following bills into law:
- A5838 (DeAngelo, Danielsen, Houghtaling/Madden, Singleton) – Concerns stop-work orders.
- A5839 (Moriarty, Verrelli, DeAngelo/Madden, Singleton) – Concerns penalties for misclassification of employees.
- A5840 (Carter, Moriarty/Greenstein, Madden)- Concerns joint liability for payment of employer tax law.
- A5843 (Speight, Verrelli, Moriarty/Lagana, Greenstein) – Requires employers to post notice for employees on employee misclassification.
- S4226 (Madden, Singleton/Calabrese, Verrelli, Moriarty) – Permits Department of Labor and Workforce Development to post information of person who violates State wage, benefit and tax laws.
- S4228 (Lagana, Madden/Chiaravalloti, Moriarty) – Concerns tax data sharing between State Treasury and DOLWD.
Source: NJ Governor’s Office