At Levine Staller, our employment lawyers, including Tony Morgano, have lectured on the serious perils employers face in misclassifying employees as independent contractors. This trend is on the rise because of the gig or sharing economy.
On August 10, 2018, 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 employees by signing an agreement to work together to end illegal independent contractor misclassification. A link to the press release from the New Jersey Department of Labor and Workforce Development:
“By misclassifying workers as independent contractors – workers who file 1099s, not W2s – employers avoid paying unemployment and disability taxes, costing state and federal taxpayers untold millions of dollars. In New Jersey alone, auditors have identified more than $80 million in underreported employer contributions since 2010. “
“One of the Labor Department’s core responsibilities is to safeguard workers from unscrupulous business practices, and to support responsible businesses by making sure everyone plays by the same set of rules,” said Labor Commissioner Robert Asaro-Angelo. “This partnership with U.S. DOL will help ensure that our business partners and the state’s workers all get the protections they deserve.”
“The agreement we signed today with the New Jersey Department of Labor and Workforce will amplify the effectiveness of both agencies,” said DOL Wage and Hour Division Regional Administrator Mark Watson. “The U.S. Department of Labor looks forward to improving coordination and increasing joint outreach and compliance assistance efforts with all of our state partners.”
“Misclassification violations can happen anywhere, but those who work in construction, transportation, information technology, and other in-demand businesses appear to be most vulnerable.”
As detailed on our Wage & Hour Claims page, litigation over the misclassification of employees as independent contractors is on the rise. There has been a growing shift amongst employers, especially in the gig economy to misclassify employees as independent contractors to cut costs.
To determine whether an employee has been misclassified, courts will assess a number of factors, including whether the employer exercised control over the worker, and whether the services were conducted in furtherance of the company’s usual business.
The consequences of misclassifying workers are enormous and include payment of back wages, overtime wages, back taxes, social security and Medicare taxes, unemployment insurance taxes and benefits, attorney’s fees, and health insurance and benefits.
Atlantic County Employment Lawyers at Levine Staller Provide Comprehensive Representation in Wage and Hour Matters
The Atlantic City employment lawyers at Levine, Staller, Sklar, Chan & Brown, P.A. help employers assess and evaluate wage and hour compliance rules. Our lawyers also have the knowledge and experience to handle all types of wage and hour claims, for both employers and employees, and we are dedicated to achieving the best possible outcome for our clients. Call us at 609-348-1300 or contact us online to schedule a consultation today. Our offices are conveniently located in Atlantic City, New Jersey, and we serve clients throughout Atlantic County, Ocean County, and Cape May County.