You show up every day, follow your manager’s instructions, work full-time hours — yet your paycheck says “independent contractor.” If this sounds familiar, you may be misclassified. Employers across New Jersey are increasingly labeling workers as contractors to cut costs, often in violation of employment law. This tactic can deprive you of wages, benefits, job protections, and even your legal rights.
NJ Employment Lawyers, LLC helps workers who’ve been misclassified fight back. If you believe you’ve been wrongly denied employee status, we’re here to help you understand your rights and pursue the compensation and benefits you’re owed.
Why Misclassification Happens
Employers have strong financial incentives to label workers as independent contractors:
- No need to provide health insurance, paid time off, or unemployment benefits
- Lower tax obligations — no Social Security or Medicare contributions
- Less liability under wage and hour laws, anti-discrimination laws, and other employee protections
However, simply calling someone a contractor does not make it so. The law looks at the nature of your work, not your job title or contract.
The ABC Test in New Jersey
New Jersey uses a strict “ABC Test” to determine whether someone is an independent contractor. To be properly classified, all three of the following must apply:
- The individual is free from control or direction over the performance of their work.
- The service is performed outside the usual course of the business or off the business premises.
- The individual is engaged in an independently established trade, occupation, or profession.
If your employer fails to meet any one of these requirements, you are likely an employee — and entitled to protections under the law.
What You Lose When You’re Misclassified
Being labeled a contractor when you’re actually an employee can cost you:
- Overtime pay
- Minimum wage protections
- Access to unemployment or disability benefits
- Family leave rights
- Protection from workplace discrimination or harassment
- Retirement plan contributions
In many cases, employees are unaware of their misclassification until a dispute arises — like being denied workers’ compensation after an injury or finding out they’re ineligible for unemployment benefits.
How to Take Action
If you suspect you’ve been misclassified, here’s what to do:
- Collect evidence: Job descriptions, schedules, communications with supervisors, and payroll records can help demonstrate how you were treated.
- Avoid signing away your rights: Don’t agree to “independent contractor” language unless it reflects the true nature of your work.
- Speak to an employment attorney: We can help you determine your legal status and advise you on how to recover lost wages and benefits.
NJ Employment Lawyers, LLC has helped many workers in New Jersey reclaim their rights and compensation after being wrongly classified as independent contractors. We can pursue claims through state or federal agencies, and we’re ready to take legal action when necessary.
You’re Not Alone — And You’re Not Powerless
If you’re working like an employee, you should be treated — and paid — like one. Misclassification is more than a bookkeeping issue; it’s a serious violation of employment law. Let us help you hold your employer accountable and get what you’ve earned.
Learn more about how this issue affects workers across New Jersey by visiting our page on Independent Contractor Misclassification.
Contact Us
NJ Employment Lawyers, LLC
101 Eisenhower Pkwy #300
Roseland, NJ 07068
Phone: (973) 358-7027