Acting on his commitment to support and uplift New Jersey workers, Governor Phil Murphy today 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.
Showing posts sorted by relevance for query misclassification. Sort by date Show all posts
Showing posts sorted by relevance for query misclassification. Sort by date Show all posts
Wednesday, January 22, 2020
Tuesday, July 13, 2021
NJ Enacts Legislation to Protect New Jersey Workers, Employers From Unlawful Misclassification
Building on his commitment to making sure that workers and employers in New Jersey are treated fairly, Governor Phil Murphy today signed a four-bill legislative package furthering state efforts to stop employee misclassification.
Tuesday, May 11, 2021
NJ Successfully Targets Employee Misclassification
In response to a report issued by Governor Murphy’s Task Force on Employee Misclassification, the New Jersey Department of the Treasury has made significant strides to deter misclassification by organizations that do business with the State in order to help address the underlying causes that lead to ever-widening income inequality.
Monday, December 5, 2011
US Labor Department, Colorado Department of Labor and Employment sign agreement to reduce misclassification of employees as independent contractors
Nancy J. Leppink, deputy administrator of the U.S. Department of Labor's Wage and Hour Division, and Ellen Golombek, executive director of the Colorado Department of Labor and Employment, signed a memorandum of understanding Dec. 5 regarding the improper classification of employees as independent contractors. Following the signing, Leppink and Golombek hosted a press teleconference during which they discussed how the U.S. Department of Labor and the Colorado Department of Labor and Employment will embark on new efforts, guided by this memorandum, to protect the rights of employees and level the playing field for responsible employers by reducing the practice conducted by some businesses of misclassifying employees. This partnership is the 11th of its kind for the U.S. Department of Labor.
"This memorandum of understanding helps us send a message: We're standing united to end the practice of misclassifying employees," said Leppink. "This is an important step toward making sure that the American dream is still available for employees and responsible employers alike."
"Misclassification costs everyone," said Golombek. "It destabilizes the business climate by creating an unlevel playing field and causing responsible businesses to suffer unfair competition. The efforts we will be launching with the U.S. Department of Labor will promote accountability that Colorado employers and employees will welcome."
Employee misclassification is a growing problem. In 2010, the Wage and Hour Division collected nearly $4 million in back wages for minimum wage and overtime violations under the Fair Labor Standards Act that resulted from employees being misclassified as independent contractors or otherwise not treated as employees.
Business models that attempt to change, obscure or eliminate the employment relationship are not inherently illegal, unless they are used to evade compliance with federal labor law. The misclassification of employees as something else, such as independent contractors, presents a serious problem, as these employees often are denied access to critical benefits and protections — such as family and medical leave, overtime compensation, minimum wage pay and Unemployment Insurance — to which they are entitled. In addition, misclassification can create economic pressure for law-abiding business owners, who often find it difficult to compete with those who are skirting the law.Employee misclassification also generates substantial losses for state Unemployment Insurance and workers' compensation funds.
Memorandums of understanding with state government agencies arose as part of the U.S. Department of Labor's Misclassification Initiative, which was launched under the auspices of Vice President Biden's Middle Class Task Force with the goal of preventing, detecting and remedying employee misclassification. Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington have signed similar agreements. More information is available on the U.S. Department of Labor's misclassification Web page at http://www.dol.gov/misclassification.
Wednesday, July 10, 2019
NJ Governor’s Report on Misclassification
Governor Phil Murphy today released a comprehensive report from the Task Force on Employee Misclassification, vowing to intensify efforts to curtail the widespread and illegal practice of misclassifying workers as independent contractors instead of employees, which cheats some workers out of benefits and wages, hurts law-abiding business owners, and costs the state tens of millions of dollars a year in lost employment-related tax revenue.
Wednesday, August 18, 2021
NJDOL, Treasury Raid Worksite in First Joint-Enforcement Action to Combat Worker Misclassification
A team of more than 60 investigators from the New Jersey Department of Labor and Workforce Development (NJDOL) and the Department of the Treasury, supported by other state agencies, conducted an unannounced investigation of a construction site at 88 Regent Street in Jersey City in response to allegations of worker misclassification.
Monday, December 16, 2013
Victims of Misclassification
Misclassification is a major issue for workers' compensation programs. Misclassified workers are those who should be considered employes but have been denied employment status. This post is shared by from the nytimes.com
.LAST month, a Michigan construction worker named Matt Anderson testified in a Senate hearing about being a victim of employee misclassification. Mr. Anderson said that his employer forced him, after six years as an employee, to switch to “independent contractor” status. Though the move stripped Mr. Anderson of basic employee rights and protections, he went along with the change, he said, because “my fellow workers and I had families to support and we saw how bad the economy was.”
Today, millions of American workers in a wide variety of sectors, from construction and trucking to I.T. and professional services, are victims of misclassification, a tactic employers use to avoid paying taxes and providing benefits that are guaranteed to employees, such as workers’ compensation, overtime pay, minimum wage and unemployment insurance.
In 2000, a United States Department of Labor study estimated that up to 30 percent of employers misclassify workers. This year, the Treasury Department’s inspector general concluded that the problem had worsened. Fifteen states have now teamed up with the Department of Labor and the Internal Revenue Service to reduce misclassification through information sharing and joint...
[Click here to see the rest of this post]
.LAST month, a Michigan construction worker named Matt Anderson testified in a Senate hearing about being a victim of employee misclassification. Mr. Anderson said that his employer forced him, after six years as an employee, to switch to “independent contractor” status. Though the move stripped Mr. Anderson of basic employee rights and protections, he went along with the change, he said, because “my fellow workers and I had families to support and we saw how bad the economy was.”
Today, millions of American workers in a wide variety of sectors, from construction and trucking to I.T. and professional services, are victims of misclassification, a tactic employers use to avoid paying taxes and providing benefits that are guaranteed to employees, such as workers’ compensation, overtime pay, minimum wage and unemployment insurance.
In 2000, a United States Department of Labor study estimated that up to 30 percent of employers misclassify workers. This year, the Treasury Department’s inspector general concluded that the problem had worsened. Fifteen states have now teamed up with the Department of Labor and the Internal Revenue Service to reduce misclassification through information sharing and joint...
[Click here to see the rest of this post]
Wednesday, August 15, 2018
NJ Labor Department, USDOL Ink Agreement to Work Together to Protect Businesses and End Exploitation of Workers through Misclassification
The New Jersey Department of Labor and Workforce Development and the U.S Department of Labor pledged a historic new level of cooperation to protect New Jersey’s economy by signing an agreement on August 10, 2018 to work together to end illegal employee misclassification.
Monday, September 19, 2011
US Dept of Labor Moves Aggressively on Misclassification of Employees
Generally, employees classified as independent contrators are not entitled to workers' compensation benefits Employers sometime commit fraud and designate employees as independent contractors and avoid paying both taxes and benefits such as workers' compensation.
11 state agency leaders also sign, agree to memorandums of understanding
Secretary of Labor Hilda L. Solis today hosted a ceremony at U.S. Department of Labor headquarters in Washington to sign a memorandum of understanding with the Internal Revenue Service that will improve departmental efforts to end the business practice of misclassifying employees in order to avoid providing employment protections. In addition, labor commissioners and other agency leaders representing seven states signed memorandums of understanding with the department's Wage and Hour Division and, in some cases, its Employee Benefits Security Administration, Occupational Safety and Health Administration, Office of Federal Contract Compliance Programs and Office of the Solicitor. The signatory states are Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah and Washington. Secretary Solis also announced agreements for the Wage and Hour Division to enter into memorandums of understanding with the state labor agencies of Hawaii, Illinois and Montana, as well as with New York's attorney general.
The memorandums of understanding will enable the U.S. Department of Labor to share information and coordinate law enforcement with the IRS and participating states in order to level the playing field for law-abiding employers and ensure that employees receive the protections to which they are entitled under federal and state law.
"We're here today to sign a series of agreements that together send a coordinated message: We're standing united to end the practice of misclassifying employees," said Secretary Solis. "We are taking important steps toward making sure that the American dream is still available for all employees and responsible employers alike."
"This agreement takes the partnership between the IRS and Department of Labor to a new level," said IRS Commissioner Doug Shulman. "In this new phase of our relationship, we will work together more efficiently to address worker misclassification issues, and better serve the needs of small businesses and employees."
Business models that attempt to change, obscure or eliminate the employment relationship are not inherently illegal, unless they are used to evade compliance with federal labor laws — for example, if an employee is misclassified as an independent contractor and subsequently denied rights and benefits to which he or she is entitled under the law. In addition, misclassification can create economic pressure for law-abiding business owners.
These memorandums of understanding arose as part of the department's Misclassification Initiative, which was launched under the auspices of Vice President Biden's Middle Class Task Force with the goal of preventing, detecting and remedying employee misclassification.
For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered occupational accidents and illnesses.
Related articles
Wednesday, December 13, 2023
Misclassification Lawsuit Filed by NJ Attorney General
Attorney General Matthew J. Platkin and New Jersey Department of Labor and Workforce Development (NJDOL) Commissioner Robert Asaro-Angelo announced today that they have filed the first lawsuit under a 2021 law that permits the State to file suit in New Jersey Superior Court against employers who have misclassified workers as independent contractors when they are, in fact, employees.
Thursday, June 1, 2023
NJ Targets Rampant Misclassification of Drywall Workers
In its second strategic enforcement initiative, focusing on the drywall industry, the New Jersey Department of Labor and Workforce Development (NJDOL) reached a first-of-its-kind enhanced compliance agreement with Donald Drywall, L.L.C. of Lakewood after investigators found the subcontractor had committed numerous wage and hour, earned sick leave, and employee misclassification violations.
Friday, August 19, 2022
NJDOL Uses Expanded Powers to Stop Worker Exploitation at Job Sites
In the three years since Governor Murphy signed a law expanding NJDOL’s powers to stop work on a job site when there is strong evidence workers are being exploited, the department has issued 71 stop-work orders, through which agents found nearly $1 million in back wages owed to 235 workers.
Saturday, February 11, 2023
Employers Fined $1.3 Million for MIsclassification of Workers Including Failure to Have Adequate Workers' Compensation Insurance
The State of New Jersey is strictly enforcing laws that mandate a worker's employment status be properly reported and that employers provide adequate workers' compensation insurance coverage. The state has some of the strictest laws in the country and they are being enforced vigorously through a multi-agency protocol.
Friday, July 15, 2011
Wednesday, September 14, 2022
Uber Pays $100M Fine in NJ Driver Misclassification Case
Uber Technologies Inc. and a subsidiary have submitted a $100 million payment to the New Jersey Department of Labor and Workforce Development’s (NJDOL’s) Unemployment Trust Fund after an audit found the ride-share companies improperly classified hundreds of thousands of drivers as independent contractors, depriving them of crucial safety-net benefits such as unemployment, temporary disability, and family leave insurance, and failed to make required contributions toward unemployment, temporary disability, and workforce development.
Wednesday, October 15, 2014
Employee vs. Independent Contractor: Can You Tell the Difference?
Today's post is shared from businesslawnews.com
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| State and federal regulators are increasingly acting to combat worker misclassification. Before using independent contractors, it is imperative to verify that they are not actually employees. The issue is legal in nature so the legal principals must be thoroughly considered and applied. Mistakes, no matter how innocent, can result in costly lawsuits and significant legal penalties. As we have previously discussed on Scarinci Hollenbeck’s Business Law News, worker misclassification occurs when a bona fide, common law employee is classified to be an “independent contractor.” In some cases, worker misclassification is intentional to avoid tax withholding, overtime pay and insurance requirements such as Workers Compensation and Unemployment Insurance. Sometimes it occurs simply because the employer did not properly understand the law. To aid the analysis, the Department of Labor (DOL) recently published a revised factsheet on worker misclassification. As the DOL highlights, an employment agreement stating that a worker is an independent contractor hold very little weight, if any. Rather, the actual nature of the working relationship is determinative. Over 25 states also apply the “ABC” test which is even more difficult to overcome (as many prominent trucking companies have been learning in recent court cases). Below are several key factors that are generally considered when determining whether an employment relationship exists: |
Thursday, September 18, 2014
Opinion: Employees getting shorted on pay
| Today's post is shared from cincinnati.com/ As the stock market, corporate profits and worker productivity have reached record highs, average employee compensation has reached record lows. But perhaps most troubling is the fact that American workers are getting robbed – literally – in the form of wage theft, or the illegal withholding or denial of compensation owed. Millions of workers each year are forced to work for less than minimum wage, do not receive overtime pay when they come in early or stay late, have illegal deductions taken out of their paychecks, or have their timesheets falsified. Tipped employees face additional challenges since tips can be stolen and because employers often do not make up the difference when tips fall below the minimum wage, as they are required to do. 12 moments in Cincy labor history Lawson: Ohioans have earned the right to work McLinden: Workers need to be part of recovery Wage theft also happens when workers are misclassified as independent contractors, who are not covered by overtime rules and do not receive overtime pay when they work more than 40 hours a week. While misclassification may not always be intentional, not having to pay overtime is a huge boon to employers and a significant loss of income for the misclassified worker. Truck drivers, home health aides and construction workers are often misclassified as exempt or independent... |
Thursday, July 23, 2015
Misclassification: US Dept of Labor Issues Interpretation of Employment Status
The Application of the Fair Labor Standards Act’s “Suffer or Permit” Standard in the Identification of Employees Who Are Misclassified as Independent Contractors.
Sounding very much like a workers' compensation standardized employment status test, the US Department of Labor has added its interpretation this developing area of the law. This memo will has obvious added consequences to state interpretation to this issue.
Sounding very much like a workers' compensation standardized employment status test, the US Department of Labor has added its interpretation this developing area of the law. This memo will has obvious added consequences to state interpretation to this issue.
Thursday, July 11, 2019
NJ Enters Into a Tri-State Agreement to Protect Workers
Labor departments from New Jersey, Pennsylvania, and Delaware signed a reciprocal agreement on Tuesday designed to better protect workers and employers through a newly established pipeline of information sharing and coordination of enforcement efforts.
This agreement grants new powers to each state, including strategic data-sharing, interstate case referrals, and joint investigations that will greatly impact wage claim investigations, worker misclassification, workplace safety efforts, and other labor-related compliance matters.
Tuesday, May 7, 2019
Trump's Gig Economy
Today's guest author is Jon Rehm, Esq. of the Nebraska bar.
The United States Department of Labor (DOL) published an opinion letter that would seem to exempt most so-called “gig economy” companies from federal wage and hour enforcement.
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