by Patrick W. McGovern, Esq., Genova, Burns & Vernoia
Warning! Employers that intentionally misclassify employees as independent contractors face new penalties in New Jersey. Employers that intentionally misclassify workers unfairly stifle business competition because the practice lets them reduce labor costs between 15% and 20%, according to some estimates. That leaves employers that don’t cheat at a competitive disadvantage. Plus, employee misclassification strips workers of benefits and disability protection, and cheats the average taxpayer out of revenue.
But the New Jersey Legislature and the New Jersey Supreme Court have stepped in to penalize employers that misclassify employees as independent contractors.
Misclassification is a crime
The Construction Industry Independent Contractor Act (CIICA), which went into effect on July 13, establishes criminal penalties for improper employee classification. It applies ...(register to read more)