New Jersey Department of Labor Issues Mandatory Misclassification Posters
New Jersey has been tackling the misclassification of workers since earlier this year with the introduction of six new bills set to target the improper use of workers. The bills impose harsher fines on employers who misclassify them as independent contractors.
In particular, A5843 is one of the laws signed into effect by Governor Phil Murphy, under what is referred to as “The Misclassification Package,” which has been gaining traction recently. This bill requires employers to notify workers of their rights regarding employee misclassification and encourages workers to file a claim if they believe they are being misclassified. The New Jersey Department of Labor and Workforce Development recently published the required 11 x 17 and 8.5 x 11 posters for employers to utilize.
What does the Assembly Bill 5843 mean?
The A5843 bill has been effective since April 1st and offers expanded protection for New Jersey workers who testify about worker misclassification. It requires employers that violate its anti-retaliation provision to offer reinstatement and pay any lost wages and benefits to misclassified workers. The new law requires employers to notify workers of their rights by posting the above posters in the workplace. If employers violate this law they will be subject to a fine of up to $1,000. The notices contain the following information:
The definition of misclassification
The definition of an employee in comparison to an independent contractor
The benefits and protections to which an employee is entitled under New Jersey wage, benefit, and tax laws
Information on what happens if a worker is misclassified as an independent contractor
Information on how to protect against retaliation for reporting misclassification
How to report misclassification
The five new laws signed by Governor Murphy, referred to as “The Misclassification Package,”
What does this mean for my business?
Companies that operate in New Jersey must immediately post the required misclassification notices in their workplaces and review their current classification practices in response to this bill. Furthermore, the growing risk of engaging independent contractors within the U.S is further highlighted. New Jersey’s stance on misclassification emphasizes the necessity of reviewing how your workers are classified as more states begin cracking down on the misclassification of workers.
It is crucial to remain compliant and classify your workers correctly as either an employee or an independent contractor. If you have any questions on how to engage independent contractors correctly, get in touch!
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.