New Jersey Independent Contractor Classification Rules Tighten

On Feb. 27, the U.S. Department of Labor proposed a new rule that could reshape how businesses determine whether workers are classified as employees or independent contractors under federal law.   Key Takeaways: 👉 The DOL may rescind the 2024 independent contractor rule and return to a more streamlined framework 👉 A renewed focus on the “economic reality” test would examine the true nature of the working relationship 👉 Misclassification risks remain significant, including potential liability, back pay and penalties   The proposed rule emphasizes real-world working conditions over contract language, focusing on factors like employer control and a worker’s opportunity for profit or loss.   While not yet final, the rule could impact worker classification under the Fair Labor Standards Act and other federal laws. The public comment period closes April 28. Learn more from Bell Nunnally’s Alana Kalantzakis Ackels and Jay Wallace here: https://lnkd.in/gmGKeVxY.   #LaborAndEmploymentLaw #FLSA

Thrilled to author this Alert with my partner Alana Ackels on a proposed rule from the Department of Labor on the definition of an “independent contractor.“

Jennifer Walwyn Colvin, Partner in Calfee's Labor and Employment group, spoke at the Cincinnati Business Courier's HR Forum on April 30. In a panel moderated by Jamie Smith, Jenn joined fellow industry leaders to address emerging trends in employment law and compliance, as well as managing workplace policies, handbooks and legal risk. Calfee was proud to serve as a sponsor of the event. Jenn is an Ohio State Bar Association Certified Specialist in Labor and Employment law. She partners with clients to understand and attain their goals with respect to all aspects of employment law and personnel management, with a focus on supporting clients during corporate transactions. Click to learn more: https://lnkd.in/gqi_C8-A #EmploymentLaw #HR #CincinnatiLawyer

The New Jersey Department of Labor has adopted new regulations clarifying how workers are classified as employees or independent contractors under the ABC Test. SHCCNJ welcomes this update, which provides clearer standards for businesses across the state and reflects meaningful input from the business community. These changes help reduce uncertainty, support compliance and create a more level playing field. The new rules take effect October 1, 2026. We encourage all members to review the regulations and consult legal or HR counsel to prepare. Read the full update: https://lnkd.in/eA8yg94d

California is expanding its prohibition on employment agreements that restrict or discourage worker mobility. In an article for the Daily Journal, Melanie Ronen, partner and chair of the firm’s employment practice, offers insights into noncompete and similar agreements and an in-depth look at the latest policy on “stay or pay” provisions for employees. Read more: https://direc.to/owRS

Happy Labour Day. Today we recognise the rights, contributions and dignity of workers everywhere - it's also a timely moment to ask: does your workforce actually know their rights? Whether you're an employee navigating a difficult workplace situation, or an employer wanting to ensure your policies and contracts are legally sound - clarity matters. Misunderstandings around entitlements, dismissal, and workplace obligations are some of the most common issues we see. And in most cases, early advice makes all the difference. If something doesn't feel right — for you or your team — it's worth a conversation. OMB's employment law team is here to help.

Partner Melanie Ronen, chair of the firm’s employment practice, recently spoke with SHRM, offering insights into the DOL’s proposed independent contractor rule and considerations for employers navigating federal and state compliance requirements. Read more: https://direc.to/oMKk

New Jersey is one of the most difficult states in which to properly classify workers as independent contractors, as the state uses the so-called “ABC test” to assess worker classification issues (as do California and Massachusetts). Earlier this month, the New Jersey Department of Labor issued regulations outlining the agency’s view on the specific contours of the ABC test in Garden State. John McDonald, Alexander Raap, and I have the details below. https://lnkd.in/eR4rVene

One month ago, the U.S. DOL issued a new worker classification rule - making it easier to be classified as an independent contractor (IC). Now, New Jersey has issued its own new worker classification rule - making it more difficult.... New Jersey club leaders with ICs should take a look below and those club leaders from other states should hang on as it could be a wild ride in the months and years to come. Cheers!

The U.S. Department of Labor (DOL) recently announced a significant proposed rule that would redefine the criteria for determining joint employer status under key federal employment statutes. This proposal represents an effort to establish a clear, consistent and nationwide framework for assessing when multiple entities share legal responsibility for employment obligations, addressing longstanding ambiguities and regional disparities in joint employer determinations. #LaborandEmployment #Buchanan George Morrison Josh Clark