New Jersey Employee Misclassification Lawyers
Were You Misclassified as an Independent Contractor?
Companies have always been able to categorize some workers as “independent
contractors.” Often, though, some companies will purposely misclassify
workers as independent contractors to avoid paying the benefits due a
regular employee.
If you or a loved one thinks they may be the victim of employment misclassification
in New Jersey or Pennsylvania,
contact the legal team at The Law Firm of Morgan Rooks, P.C.
The rise of giant ride-sharing companies and tech firms has begun to shed
more light on misclassification practices. Why take a second look at this
business practice? Because misclassifying workers is not only illegal,
but it saves major companies millions of dollars while depriving workers
of basic benefits and wage protections. The practice is much more common
than most people realize and impacts workers in numerous industries like
IT, construction, childcare, cosmetology, accounting, and driving.
At The Law Firm of Morgan Rooks, P.C. we strongly believe in protecting
workers’ rights. Unfortunately, it has become an all-too-common
practice that companies value their profit margin over the well-being
of the people that have made the company a success in the first place.
If you believe you’ve been misclassified, you may be missing out
on the crucial benefits and wages that you are entitled to. For more information
on employment misclassification and what you can do about it, contact
the New Jersey employee misclassification attorneys at The Law Firm of
Morgan Rooks, P.C.
What is Employment Misclassification?
“Employee misclassification” is when a company or organization
treats a worker as an independent contractor and not a company employee,
when in fact, they should be considered an employee of the company. This
practice is considered illegal regardless of whether the misclassification
was a mistake or intentional.
National economic studies and state reports show that anywhere from 10-30% of employers misclassify their workers
as independent contractors.
Why does misclassification matter? When a worker is considered an independent contractor instead of an employee,
it means they are missing out on a number of benefits that are typically
granted to full-time company employees. As an independent contractor,
you may be getting a paycheck, but you end up missing out on many things
that employees tend to take for granted.
Being employed as an independent contractor means:
- You are required to pay all Social Security and Medicare taxes out of pocket
- You are ineligible for unemployment benefits if you lose your job
- You are ineligible for most company healthcare plans
- You are ineligible for workers’ compensation benefits
- You are ineligible for most workplace rights such as minimum wage, overtime
pay, sick pay, and rest breaks
By misclassifying workers, a company can avoid paying taxes, unemployment
insurance, workers’ compensation insurance, overtime, healthcare,
and benefits. They may also be able to get away with underpaying wages
and exposing contractors to a variety of risks. Misclassifying workers
is a way for companies to keep more money in their own pockets. While
misclassification of employees may save the company money, it denies workers
the benefits they otherwise may deserve.
New Jersey Laws Against Worker Misclassification
At the beginning of 2020,
New Jersey Governor Phil Murphy signed into law a massive legislative package designed to combat the exploitative practice
of worker misclassification. This package puts the state of New Jersey
at the forefront of fighting back against misclassification.
In total, 6 new bills have been signed into law that aim to better protect
workers and hold companies responsible for exploiting those workers. These
bills, which took effect on April 1st, 2020, aim to do the following:
- Give the Commissioner of Labor the power to issue a stop-work order against
any company not in compliance with state wage, benefit, or tax laws
- Enhance penalties for companies that engage in employee misclassification
- Enhance penalties for companies that discharge or discriminate against
employees or contractors that ask questions or file complaints about misclassification
- Allow the Department of Treasury to provide tax information to the Department
of Labor in an effort to help the department investigate wage, benefit,
or tax law violations
- Require employers to post information in an easily viewed space about employee
misclassification
Call us today at
(856) 746-6332 and let us help you determine if your rights are being violated.
