As a temporary worker or a consultant in New Jersey, you should understand your employment rights. It is important to know the difference between how your employer/client classifies you and the way the law does. Don’t let a misclassification limit or violate your legal rights.

At Will Employment

At will employment is equivalent to an employee that is hired by an employer for an undetermined amount of time. At any time during the period of the at will employment, an employer has the right to terminate the working relationship with the employee. There are particular situations where the employer may decide to do so, whether there is just cause and without providing any advance notice. Unless there is a contract or other written documentation in place, which stipulates that an employer must have “just cause” to terminate employment, you should presume that your employment is at will. You should also be aware that the laws that apply to at will employees would also apply to any seasonal employees.

Temporary Employment and Consulting Relationships

In New Jersey, it is also very common for employers and business owners to contract work to various contractors, consultants or hire on a contractual or temporary basis. These temporary workers’ would be entitled to receive certain benefits such as worker’s compensation and unemployment insurance. However, as a temporary employee you may not be eligible to receive particular optional coverages such as the 401(k) plan or Medicare. These coverages would be optional for the employer to provide to temporary workers.

Independent contractors would be considered self-employed and would not be in receipt of any type of wage from the employer, these would instead be classified as contractual payments. A variety of testing is used by the IRS and other government agencies to determine whether a worker is indeed a contractor or a regular employee. If you are misclassified by your employer and said to be a contractor instead of an employee, your employer may be held liable and endure penalties.

How to determine if you were classified incorrectly

To determine if you were classified incorrectly by your employer, here are a few questions that you may ask yourself:

•1. What is the degree of control over work and who exercises that control?

•2. What is each party’s level of loss in the relationship?

•3. Who has paid for materials, supplies and/or equipment?

•4. What type of skill is required for work?

•5. Is there a degree of permanence?

•6. Is the worker an integral part of the business?

Coincidentally, these are the same type of questions that the IRS and your employment lawyer will ask when looking into your claim.

New Jersey Acts, Regulations and Laws

In the state of New Jersey there are several acts, regulations and laws that protects employees and temporary workers:

•· NJ State Prevailing Wage Act and Regulations

•· New Jersey Gross Income Tax Act

•· New Jersey State Wage and Hour Law

However, unless you are extremely familiar with NJ Employment Laws, and a regular or at will employee, they may not apply to you. An employment attorney would be able to point out which parts may be applicable to your situation.

Know the Risks

Economic Modelling Specialists Inc. analyzed a series of federal employment data from 2005 to 2010 and they determined that 4 million Americans became independent contractors during this time. By becoming contractors these workers’ gave up rights and were susceptible to discrimination, minimum wage, overtime issues because they were not covered under such laws.

Conclusion

If you feel that you are not being protected by laws that should apply to you or that you were classified incorrectly, an employment lawyer can help you challenge your “independent contractor” status. Even if you think you may be correctly classified, it is always a good idea to consult with a lawyer before you start working as a contractor, just to make sure that you understand the upsides and risks of being your own boss.

If you require legal assistance, representation, or just want to consult with an experienced employment attorney, contact us to arrange a consultation to discuss your matter. We will do our very best for you under any circumstance.