Dear Members of the New Jersey State Legislature:
Re: Please Support the Proposed Department of Labor Regulation on the Misclassification of Workers as Independent Contractors
The New Jersey State AFL-CIO supports the proposed regulations (NJAC 12:11) concerning the ABC test for determining workers’ status as an employee or independent contractor. Several other unions strongly support the adoption of this regulation as well. They include the Laborers International Union of North America (LIUNA), the United Brotherhood of Carpenters (UBC), the Health Professionals and Allied Employees (HPAE-AFT) and Local 469 / Joint Council 73 of the Teamsters union and the New Jersey Building and Construction Trades.
This regulation does not in any way expand or strengthen the existing ABC test for determining worker status. It simply clarifies the ABC determination standard. This is not a new policy.
Due to recent lawsuits settled before the New Jersey State Supreme Court reaffirming the validity of the ABC test, the court requested the state Department of Labor issue regulations to provide clarity on implementation of the law for the benefit of both employers and workers alike. That is what this proposed regulation is doing.
Please note that this regulation in no way eliminates the ability to be an independent contractor and the New Jersey State AFL-CIO in no way opposes legitimate independent contractor classification. We recognize the flexibility many workers enjoy that is a product of IC status. These same workers, that are currently being misclassified as independent contractors by their employer, can easily be in compliance with the law and can still enjoy this flexibility as a W-2 earner (employee). Being in compliance with the law and having flexible work can both be achieved and is not a “one or the other” choice as some in the business community state.
The bottom line is that businesses that intentionally misclassify workers reap a huge windfall of increased profits by not paying several associated taxes and workers suffer the consequences. When workers are misclassified, they lose access to unemployment insurance, overtime, minimum wage, paid sick days, paid family leave, worker compensation, among others. And because independent contractors are outside the NLRA, these workers have their right to join a union stripped away from them.
For these reasons, we respectfully ask you to support the adoption of this proposed amendment.
Dear Members of the New Jersey State Legislature:
Re: Please Support the Proposed Department of Labor Regulation on the Misclassification of Workers as Independent Contractors
The New Jersey State AFL-CIO supports the proposed regulations (NJAC 12:11) concerning the ABC test for determining workers’ status as an employee or independent contractor. Several other unions strongly support the adoption of this regulation as well. They include the Laborers International Union of North America (LIUNA), the United Brotherhood of Carpenters (UBC), the Health Professionals and Allied Employees (HPAE-AFT) and Local 469 / Joint Council 73 of the Teamsters union and the New Jersey Building and Construction Trades.
This regulation does not in any way expand or strengthen the existing ABC test for determining worker status. It simply clarifies the ABC determination standard. This is not a new policy.
Due to recent lawsuits settled before the New Jersey State Supreme Court reaffirming the validity of the ABC test, the court requested the state Department of Labor issue regulations to provide clarity on implementation of the law for the benefit of both employers and workers alike. That is what this proposed regulation is doing.
Please note that this regulation in no way eliminates the ability to be an independent contractor and the New Jersey State AFL-CIO in no way opposes legitimate independent contractor classification. We recognize the flexibility many workers enjoy that is a product of IC status. These same workers, that are currently being misclassified as independent contractors by their employer, can easily be in compliance with the law and can still enjoy this flexibility as a W-2 earner (employee). Being in compliance with the law and having flexible work can both be achieved and is not a “one or the other” choice as some in the business community state.
The bottom line is that businesses that intentionally misclassify workers reap a huge windfall of increased profits by not paying several associated taxes and workers suffer the consequences. When workers are misclassified, they lose access to unemployment insurance, overtime, minimum wage, paid sick days, paid family leave, worker compensation, among others. And because independent contractors are outside the NLRA, these workers have their right to join a union stripped away from them.
For these reasons, we respectfully ask you to support the adoption of this proposed amendment.