NJ Supreme Court weighs in: Employee or Independent Contractor?

January 14, 2015

From the NJ Supreme Court: In Sam Hargrove, et. al. v. Sleepy’s, LLC "Plaintiffs Sam Hargrove, Andre Hall, and Marco Eusebio deliver mattresses ordered by customers from defendant Sleepy’s, LLC. Plaintiffs contend that they suffered various financial and non-financial losses as a result of defendant’s misclassification of them as independent contractors, rather than employees. Plaintiffs each signed an Independent Drive Agreement, which they assert was a ruse by defendant to avoid payment of employee benefits. They contend that the misclassification violates state wage laws."

 

The N.J. Supreme Court held: the “ABC” test derived from the New Jersey Unemployment Compensation Act, N.J.S.A. 43:21-19(i)(6), governs whether a plaintiff is an employee or an independent contractor for purposes of resolving a wage-payment or wage-and-hour claim.  

 

A copy of the Court's decision is available here:

 

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