(TRENTON, N.J.) – The Teamsters Union applauds New Jersey Governor Phil Murphy for signing and New Jersey legislators for passing an historic legislative package that will help protect workers from misclassification.

The package of bills will crack down on employee misclassification by allowing stop-work orders against employers violating state wage, benefit and tax law; assessing penalties for violations in connection with misclassification of employees: requiring employers to post a notice for employees about misclassification; and more.

“This is a tremendous step forward in protecting workers in New Jersey from misclassification,” said Fred Potter, Teamsters International Vice President and President of Teamsters Local 469 in Hazlet, N.J. “This legislation will not impact legitimate independent contractors, but it will serve to protect the thousands of workers who are harmed by the illegal practice of being misclassified by their employers as independent contractors when in fact they are employees. It’s critical that these groundbreaking laws be followed by enforcement to ensure New Jersey’s workers are protected.”

The state legislature is expected to take up Senate Bill 4204 in the current legislative session. S4204 will further expand employment rights to thousands of workers who are misclassified by their employers as ‘independent contractors.’

The illegal practice of misclassification allows companies to avoid the costs of standard workplace protections like workers’ compensation, health care, minimum wage and Social Security, passing costs off onto taxpayers, depriving the state of revenue, and putting law-abiding companies at a competitive disadvantage.

“The Teamsters Union will always stand with workers in the fight against misclassification because it is an illegal practice that hurts workers and communities,” Potter said.

In New Jersey, a 2018 state audit found 12,315 workers were misclassified, over $462 million in wages were underreported and nearly $14 million in unemployment, disability, family leave insurance and other contributions were underreported. Since the audit was of one percent of registered N.J. employers, the true costs of misclassification are much greater.

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at www.facebook.com/teamsters.

 

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