Independent Contractor Legislation
Senate President Sweeney introduced legislation, S-4204 (Sweeney), which would ban certain independent contractor relationships – a measure the CCSNJ opposes. Since its initial introduction, the bill was amended to not be as broad and impact as many, but still makes fundamental changes to the ABC Test, which is what employers use to determine whether or not a person must be classified as an employee or not. Of specific concern to the CCSNJ are the changes to the C-prong, which eliminates “trade, occupation, profession” from the definition of independent contractors. Instead, the legislation limits the prong to “business or enterprise,” crushing the entrepreneurs that are critical to the start-up/innovation economy in New Jersey. Although early indications pointed to this bill passing during lame duck, it stalled in the final days. The CCSNJ continues to oppose this legislation and will monitor it in the new legislative session.
Related Links : https://www.nj.gov/labor/ea/audit/independent-contractor-vs-employees/