NJ ABC Test Adoption & Independent Contractor Criticisms
Key Questions
What is the ABC test adopted by NJDOL and when does it take effect?
The ABC test is a stricter standard for classifying workers as independent contractors versus employees, adopted by the New Jersey Department of Labor (NJDOL) effective October 1. It requires businesses to prove a worker is free from control, performs work outside the usual business, and is engaged in an independent trade.
What criticisms have businesses raised about New Jersey's ABC test adoption?
Businesses criticize the ABC test for increasing risks of misclassification audits, creating HR challenges, and complicating operations for gig platforms like DoorDash, Uber, Upwork, and Fiverr. It ties into broader tax crackdowns and restrictions on multi-app violations for delivery services.
How does the ABC test impact gig workers and side hustles in New Jersey?
The test may reclassify many gig workers as employees, affecting taxes on side hustles like hobbies or gigs as per IRS views, and posing HR challenges for flexible workforces. Platforms face compliance issues, potentially limiting multi-apping for delivery drivers.
NJDOL adopts ABC test Oct1 biz criticisms misclass audits HR challenges DoorDash/Uber/Upwork/Fiverr ties taxes crackdowns delivery multi-app violations.