States

New Jersey unemployment tax owner-operator exemption gutted: What’s the fallout? 

Map Of New Jersey 3d Shape

  From FreightWaves, Chad Prevost discusses changes to the regulations issued by the New Jersey Department of Labor and Workforce that mean that owner-operators must satisfy the ABC test instead of the common law test to be exempt from New Jersey unemployment taxes. Chad writes: Yesterday, the New Jersey Department of Labor and Workforce Development published notice…

In Today’s Gig Economy, Are You Classifying Dealer-Trade Drivers Correctly? 

Smiling older driver at auto dealership

  From Dealer Marketing,  Lariza Hebert and Stephen J. Roppolo discuss a case in Texas in which a driver for a automobile dealershi was found to be an independent contractors. Lariza and Stephnen write: Dealer-trade drivers may be independent contractors—in certain circumstances Smaller dealerships in rural areas often utilize contract dealer-trade drivers. Drivers are often retired individuals…

Barbers quit over state ruling on independent contractors 

Barbershop

  From the Sacramento Bee, Benjy Egel writes about a barbershop where barbers quit rather than be reclassified as employees following the California Supreme Court decision. Benjy writes: Three customers sat on Bottle & Barlow’s patio Wednesday afternoon, sipping cocktails and soaking up the last bits of summer sun. That was a crowd compared to the scene…

Alaska governor signs comp reform bill with new definition of independent contractor

Alaska Map

  From Business Insurance,  Louise Esola reports that Alaska Governor Bill Walker signed workers compensation legislation that provides a new definition of “independent contractor.” Louise writes;  Alaska Gov. Bill Walker on Friday signed into law a bill that aims to reduce administrative costs in the workers compensation system and provide a clear definition of independent contractor,…

The California Supreme Court To Decide Whether California’s Labor Laws Apply To Employees Who Work Only Partially In California 

California

  From JDSupra, Joseph Persoff discusses a pending case that may decide whether workers who spend 10-20 percent of their time working in California and the remainder of their time working in other states are subject to California labor laws. This is particularly important for independent contractors who may work 90% of their time in a different…

Stiffer Penalties Proposed for Misclassification of Construction Workers 

Construction workers and steel beams

  From The Legal Intelligencer, Victoria Hudgins reports on a Pennsylvania state representative’s efforts to increase the penalties for misclassifying workers. The construction industry is frequently the target of government efforts to find and punish companies that misclassify workers. Victoria writes: A state representative seeks to increase the penalties for misclassifying construction employees as independent contractors.“Intentional…

No Relief In Sight For California Employers Dealing With The Notorious ABC Test 

  From JD Supra, Richard Meneghello reports that it is unlikely that the California legislature will address the California Supreme Court’s decision to change the standard for classifying workers as employees or independent contractors. Richard writes: As we described earlier this summer, the California Chamber of Commerce and a coalition of dozens of businesses and business advocacy…

Independent Contractor Test: Legislature Should Act 

California

From CalChamber Alert,, Jennifer Barrera discusses on the California Chamber of Commerce’s position on the recent California Supreme Court case that set forth the new standard for independent contractor classification. Jennifer reports: During an interview with KPCC radio this week, Jennifer Barrera, senior vice president of policy for the California Chamber of Commerce, highlighted the urgent need…

Virginia forms task force to block worker misclassification 

blue map of virginia

  From The State. the Associated Press reports that the governor of Virginia formed a task form to address the misclassification of workers.  It reports: Gov. Ralph Northam has signed an executive order establishing a task force to come up with a plan to prevent worker misclassification and payroll fraud. The state estimates that the…