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…
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…
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…
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…
From JDSupra, Rachel Mongiello reports on a recent case in New Jersey in which the court would not compel arbitration despite an arbitration clause because the clause did not select a forum or institution like the American Arbitration Association for conducting the arbitration. Because arbitration clauses are valuable protections against class action lawsuits alleging miclassification of…
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…
From JDSupra, Jason Silver and Howard Wexler report on the cooperation agreement signed by the United States Department of Labor (DOL) and the state of New Jersey that provides that they will work together to investigate claims of misclassification. They write: The cooperation agreement comes three months after Governor Phil Murphy signed an Executive Order establishing the…
From WBGO, Phil Gregory reports on a bill in the New Jersey legislature that would protect freelancers, along the lines of the Freelancing Isn’t Free Act (FIFA) adopted by New York City. Phil writes: Assemblyman Andrew Zwicker says his bill would require businesses that have a written contract with a freelance worker to compensate…
From JDSupra, Mark Tabakman discusses his experience applying the ABC test in New Jersey. Since California adopted the ABC in recent decision, many commentators have focused on Part B -whether the work is done outside the usual course of business. Mark’s experience is that Part C – whether the worker is an independent business — is…
From JDSupra, Patrick McGovern reports on a new commission to investigate misclassification in the construction industry. Patrick writes: On May 3, 2018 New Jersey Governor Phil Murphy signed Executive Order No. 25 which authorizes a 12-person task force to review misclassification of workers as independent contractors in New Jersey, with a focus on the construction industry. …