A bill that seeks to enhance penalties for misclassification of employees under state laws passed the full Assembly this week by a vote of 48-22.
NJBIA continues to oppose bill A-5890/S-3920 because it allows for overbroad enforcement by the state Labor Commissioner with little oversight or control by the courts.
“We recognize the need for the state to enforce misclassification law against truly bad actors,” said NJBIA Vice President of Government Affairs Ray Cantor. “But businesses have legitimately relied on independent contractors for decades for everything from cleaning office buildings to hauling goods across the country. This bill will have a chilling effect on those business who do their level best to comply with the law.
“The bill allows the state Labor Commissioner to file a civil suit for an alleged injured person, rather than the person filing his or her own private suit. The Commissioner can enlist the use of private law firms to perform these suits, ostensibly putting the lure of profits over policy. It also expands stop-work orders to apply to all of a business’ locations, even if the other locations were not involved in the allegation.”
Here’s a breakdown on how each member of the Assembly voted on the bill.