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Murphy Signs Several Bills Into Law Aimed at Combating Employee Misclassification

On Monday, Governor Phil Murphy (D-NJ) signed a package of bills into law aimed at combating employee misclassification. The new laws came in response to a July 2019 report published by Murphy’s office that found that in 2018 more than 12,000 workers in New Jersey were misclassified leading to $462 million in underreported wages, as well as nearly $14 million in contributions, including unemployment and disability.

The bills signed into law Monday include legislation that will penalize employers in New Jersey who knowingly misclassify their workers, as well as a bill that requires employers to post notices in the workplace aimed at helping employees determine if they have been illegally misclassified. Lawmakers in the state failed to pass a separate bill, similar to California’s AB 5 that would have redefined employees and independent contractors.  

 

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