AccountingNew JerseySmall Business

Worker classification status; proposed change in New Jersey

This is how the so-called ‘ABC’ codification test may change for determining proper classification of independent contractors in New Jersey.

Under current law, a worker can be classified as an independent contractor if:

A. Such individual has been and will continue to be free from control or direction over the performance of such service, both under his contract of service and in fact; and

B. Such service is either outside the usual course of the business for which such service is performed, or that such service is performed outside of all the places of business of the enterprise for which such service is performed; and

C. Such individual is customarily engaged in an independently established trade, occupation, profession or business.

 

As written into proposed bill S4202, the B and C factors would be altered:

A. The individual has been and will continue to be free from control or direction over the performance of the service, both under the individual’s contract of service and in fact; and

B. The individual’s service is outside the usual course of the business for which that service is performed; and

C. The individual is customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the work performed.

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