['Contingent Workforce']
['Independent Contractors']
06/14/2024
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Under New Jersey law, the same definition of “independent contractor” used for purposes of unemployment compensation law is used to determine whether an individual is an employee or independent contractor for purposes of wage and hour law.
Employee: Any person suffered or permitted to work by an employer, except that independent contractors and subcontractors shall not be considered employees.
Independent contractor: A worker is presumed to be an employee unless all the following criteria met:
- The individual has been and will continue to be free from control or direction over the performance of work performed, both under contract of service and in fact;
- The work is either outside the usual course of the business for which such service is performed, or the work is performed outside of all the places of business of the enterprise for which such service is performed, and
- The individual is customarily engaged in an independently established trade, occupation, profession, or business.
Related information
Citations
- N.J.S.A. 34:11-56a et seq. – Wage and Hour Law
- N.J.A.C. 12:56-16.1 – Independent contractor status criteria
- N.J.S.A. 43:21-19(i)(6)(A-C) – Unemployment Compensation Law
- Part 795 — Employee or independent contractor classification under the Fair Labor Standards Act
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