Is Another Strict ABC Test About to Muddy the Independent Contractor Waters?

NJ ABC Test independent contractorAccording to this article about the Garden State, New Jersey is about more than just the Sopranos and Snooki. Here are three fun facts about NJ:

1. Considered the “Diner Capital of the Country,” NJ has an estimated 525 diners. (I’m assuming from context that more than 525 New Jerseyans dine out, that “diners” here means those breakfast-themed restaurants that often look like rail cars, and that Uber Eats isn’t quite yet so dominant that the other 9 million NJ-ers eat at home every night.)

2. The first modern submarine ride was taken in NJ’s Passaic River. (I find this hard to believe but, if true, I’m sure the scenery was lovely.)

3. NJ was home to the first intercollegiate football game, Rutgers vs. Princeton. (The game is still in a scoreless tie.)

Another less fun fact about NJ is that its legislature may be about to adopt one of the strictest tests for independent contractor misclassification in the country. A recently proposed bill would model the state’s test for independent contractor vs. employee on the new California ABC Test.

New Jersey already uses a type of ABC Test for its wage and hour laws, but the bill would make Part B of the test much harder to meet — like California’s new law, Assembly Bill 5.

It’s no lock that the proposed law will pass, but if I am a betting man — and, fun fact, sports wagering is now legal in NJ — I would bet this one will become law sometime in 2020.

Until then, at least we can all enjoy the diner and submarine scene.

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© 2019 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

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