In today’s evolving labor market, more workers are being labeled as “independent contractors” instead of employees. While this may seem like a mere technicality, the classification carries serious legal and financial consequences. Unfortunately, many employers intentionally misclassify employees to avoid providing benefits, wage protections, and tax responsibilities.
At NJ Employment Lawyers, LLC, we fight to expose and correct unlawful misclassification. If you believe you’ve been improperly labeled as a contractor when you’re performing the work of an employee, you may be missing out on critical workplace protections under state and federal law.
What Is Misclassification?
Misclassification occurs when an employer treats a worker who should legally be classified as an employee as an independent contractor. The distinction matters because employees are entitled to benefits and protections that independent contractors are not, including:
- Minimum wage and overtime pay
- Workers’ compensation and unemployment benefits
- Health insurance (for qualifying employers)
- Family and medical leave protections
- Employer tax contributions
Independent contractors, on the other hand, generally operate their own business, set their own hours, and are not under the direct control of a company in the same way employees are.
The ABC Test in New Jersey
New Jersey uses the “ABC Test” to determine whether a worker is an independent contractor or an employee. Under this test, an employer must prove that:
- The individual is free from control or direction in performing the work;
- The service is performed outside the usual course of the employer’s business or outside of the employer’s place of business; and
- The individual is customarily engaged in an independently established trade, occupation, profession, or business.
If the employer cannot satisfy all three criteria, the worker must be classified as an employee.
Why Employers Misclassify Workers
Misclassification is often driven by a desire to cut costs. By labeling workers as independent contractors, companies avoid paying employment taxes, benefits, and overtime. In doing so, they shift risk and responsibility onto the worker—often leaving them vulnerable and underpaid.
This practice is especially common in industries like:
- Construction
- Transportation and delivery services
- Home healthcare
- Technology and freelance work
- Hospitality and food services
How Misclassification Harms You
Being misclassified can have far-reaching consequences. You may miss out on:
- Overtime compensation for long work hours
- Employer-paid Social Security and Medicare taxes
- Job-protected leave under the Family and Medical Leave Act (FMLA)
- Protections against unlawful termination or discrimination
In addition, misclassified workers often struggle with tax burdens, as they’re responsible for self-employment taxes that are typically shared with an employer.
What You Can Do If You’re Misclassified
If you suspect that you’ve been misclassified, it’s important to seek legal advice immediately. At NJ Employment Lawyers, LLC, we will thoroughly review your job duties, contracts, and employer practices to determine if your classification complies with New Jersey law.
We may assist you in filing a complaint with the New Jersey Department of Labor and Workforce Development or pursuing a legal claim for back pay, unpaid overtime, tax reimbursement, and damages.
Fighting Back with NJ Employment Lawyers, LLC
Our firm has handled numerous misclassification cases across a variety of industries. We understand how companies operate—and we know how to build strong, evidence-based cases that prove employee status under the ABC test.
We offer personalized attention, responsive communication, and a relentless pursuit of justice. Whether through negotiation or litigation, our goal is to secure the compensation and protections you’re entitled to under the law.
If you’re located in New Jersey and believe you’ve been misclassified, we encourage you to take action now to protect your rights and your future.
Contact NJ Employment Lawyers, LLC
Address:
101 Eisenhower Pkwy #300
Roseland, NJ 07068
Phone: (973) 358-7027
About Us:
At NJ Employment Lawyers, LLC, we represent employees across New Jersey in employment law disputes including misclassification, discrimination, retaliation, harassment, and wage violations. We are your trusted advocate when your rights at work are in question.
