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Legislative Updates

CCSNJ Opposes Harmful Employee Misclassification Bill Package

219th Legislative Session Labor Mandate Updates Legislative Updates
On June 16, the Senate Labor Committee and Assembly Appropriations Committee heard a package of bills concerning worker misclassification, which targets employers who use independent contractors.
The CCSNJ opposed the bill package, which was unexpectedly added to the Committee agendas earlier this week, as they would grant broad authority to the Commissioner of the New Jersey Department of Labor and Workforce Development (DOLWD) on the issue of worker misclassificationThe CCSNJ is concerned that businesses that are attempting to comply with the complex misclassification law (ABC test), along with its various interpretations, could be inadvertently penalized.
The bill package includes the following bills:
S-3920/A-5890 (Madden/Verrelli) - Concerns enforcement of employee misclassification and stop-work order laws. This bill would increase penalties for misclassification of employees under state laws.
S-3921/A5891(Madden/Oroho Egan) - Creates "Office of Strategic Enforcement and Compliance" in DOLWD; appropriates $1 million from General Fund.
S-3922/A-5892 (Madden/Sumter) - Streamlines identification of employee misclassification.
Despite the CCSNJ and various business group’s opposition, the bills were released in the Senate Labor Committee by a vote of 3-1, 4-0 and 3-1, respectively. In Assembly Appropriations committee the bills were released by a vote of 7-4. They now move to the full Senate and Assembly for consideration

Should you have any questions, please contact Hilary Chebra, Manager of Government Affairs at  
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Hilary Chebra

Manager, Government Affairs, CCSNJ

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