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A worker walks into your HR office and makes allegations of harassment and a hostile work environment under the New Jersey Law Against Discrimination (LAD). You check the personnel file and realize that she actually is an independent contractor who provides services to your company. You’re off the hook, right?

Think again. Not necessarily, according to the New Jersey Appellate Division.

Workers in “outsourced” departments still may qualify as employees under LAD, even though they appear to be independent contractors. That can expose your company to liability. 

NJ Appellate Division weighs in

That was the situation facing the New Jersey Appellate Division in Hoag v. Commissioner Devon Brown, et al. It involved a female Sicilian-American social worker employed by a company called Correctional Medical Services Inc. (CMS), which provided mental health services for state prison inmates.

The New Jersey Department of Correcti...(register to read more)

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