New Jersey

New Jersey Wage Deduction Class Action Revived By Appellate Division: More Independent Contractor Fallout 

From JDSupra, Mark Tabakman discusses a recent case in which the court found deductions for workers compensation were improper because the workers were misclassified as independent contractors. Mark writes: When employers classify individuals as independent contractors, they are not obligated to provide them with certain benefits, as they would statutory employees.  Sometimes, if those individuals…

New Jersey Getting Tougher on Independent Contractor Misclassification: Task Force Issues Report With 16 Regulatory and Legislative Recommendations 

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From JDSupra, Richard Reibstein discusses the report and recommendations of the New Jersey Misclassification Task Force. Richard writes: On July 9, the New Jersey Misclassification Task Force issued its first Report. The Task Force was created by an Executive Order issued by Governor Phil Murphy on May 3, 2018 and includes representatives from the Labor,…

Enforcing An Arbitration Agreement When The Federal Arbitration Act Does Not Apply 

From Lexology, Jed L. Marcus discusses two New Jersey cases which focused on whether arbitration agreements could be enforced under the Federal Arbitration Act (FAA) or the New Jersey Arbitration Act (NJAA). Jed writes: In Colon v. Strategic Delivery Solutions, LLC, Docket No. A-2378-17T4 (App. Div. June 4, 2019), the Appellate Division, in a precedential opinion…

Arbitration Agreement For Company’s Transport Workers Enforceable Under New Jersey Law, Court Rules 

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From JDSupra, Joshua Allen, Carlyle Edwards-Balfour, and James McDonnell discuss a recent case in which transportation workers in New Jersey may have to arbitrate their claims under state law even though they might be exempt from arbitration under the Federal Arbitration Act (FAA). Joshua, Carlyle and James write: Even though the Federal Arbitration Act (FAA) exempts…

Northwestern Mutual Passes ‘ABC Test,’ Defeats Suit Claiming Agents Were Misclassified

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From the New Jersey Law Journal, P.J. D’Annunzio discusses a case in which the court said that an insurance agent was an independent contractor under the ABC test. P.J. writes: A federal judge has dismissed a putative class action against Northwestern Mutual filed by a longtime insurance agent who claimed the company improperly classified him and…

New Jersey ABC Test: Third Circuit Decides It Isn’t Preempted by Federal Law

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From The National Law Review, Michael D. Thompson discusses the Third Circuit Court of Appeals decision that the Federal Aviation Administration Authorization Act does not preempt New Jersey’s ABC test for determining if a worker is an employee or independent contractor. Michael writes: In determining whether the FAAAA preempts a state law, courts consider whether the law’s…

Third Circuit Rules That FAAAA Does Not Preempt New Jersey’s ABC Test for Determining Independent Contractor Status 

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From JDSupra, Alexander Chemers and Ryan T. Warden report that the Third Circuit Court of Appeals found that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) did not preempt New Jersey’s ABC test. Alexander and Ryan write: Tasked with determining whether New Jersey’s ABC test was preempted by the FAAAA, the Third Circuit began by reviewing previous preemption…

Appellate Division Rules Independent Contractor Agreements Signed by Driver’s Corporation Not Bullet Proof Against Class Action Overtime and Wage Deduction Claims 

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  From JDSupra, Patrick McGovern discusses a New Jersey case in which an appellate court allowed a misclassification claim to proceed even though the company signed an independent contractor agreement with separate corporations. Patrick writes: The Appellate Division held that “a court is not limited to the terms of the contract between the parties” and the…

Two State Courts Reject Arbitration Because Clause Lacked Administrator 

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  From Lexology, Liz Kramer discusses recent cases in Missouri and New Jersey in which the court did not require arbitration because the administrator no longer provides arbitration services and because the arbitration clause did not indicate who would administer the arbitration. Liz writes: This post is aimed at drafters of arbitration clauses. Because if…