New Jersey Supreme Court Clarifies Standards For Independent Contractors

The New Jersey Supreme Court recently clarified the standard to be used to determine whether a worker is an employee or an independent contractor for purposes of the New Jersey Wage Payment Law and the New Jersey Wage and Hour Law. The Wage Payment Law governs the time and method employees are paid wages. The Wage and Hour Law establishes a minimum wage and overtime rate payable to employees.

To be considered an independent contractor rather than an employee, your employer must show each of these three factors are satisfied:

1. The employer neither exercised control over the worker, nor had the ability to exercise control in terms of the completion of work. This factor focuses on both the terms of any employment agreement and the actual facts of the employment relationship.

2. The services provided were either outside the usual course of business or performed outside of all the places of business of the enterprise for which such service is performed; and

3. The worker has a profession that will plainly persist despite termination of the challenged relationship. This factor focuses on the usual or customary trade, occupation, profession or business of the worker retained to perform services for the employer.

Unless your employer can satisfy each of these three criteria, you will be considered an employee for wage purposes.

If you believe that you have been improperly classified as an independent contractor, contact the Law Offices of Damian Christian Shammas, LLC at (973) 998-8500 or