New Jersey is bolstering its efforts against worker misclassification, signalling the increasing financial risks that employers may face if they erringly classify employees as independent contractors. Kathleen M. Connelly of Lindabury, McCormick, Estabrook & Cooper underscores the growing confidence amongst such employers as a consequence of past leniency,
stating , “Because of the fact that they got away with it for so long, there was a little bit of false bravado.”
The state’s stringent approach is evident in a case presently unfolding in the U.S. District Court in Newark. Robert Asaro-Angelo, commissioner of the state Department of Labor and Workforce Development, has accused STG Logistics Inc. and its subsidiaries of inaccurately categorising more than 300 truck drivers as independent contractors. This case serves as a timely reminder of the escalating legal risks facing such employers.