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Employee classification requirements in New Jersey can pose as a legal minefield for employers. Employers must remain diligent in staying updated on federal and state requirements or risk exposure to significant financial damages, including fines and civil liability.

This questionnaire is designed to assist New Jersey employers in making classification determinations for their employees and highlights the requirements for some of the more common exemption categories.

A couple of decades ago, it was not common for businesses to hire independent contractors. With the advent of the “gig economy,” however, businesses are relying on independent contractors more than ever.

New Jersey law imposes certain obligations on businesses with respect to their “employees.” These obligations, however, do not apply to “independent contractors.” A determination as to whether a worker is an employee or independent contractor, therefore, is imperative to ensure that an employer is compliant with New Jersey law. There is no single test under New Jersey law for determining whether a worker is an employee or independent contractor. Rather, the applicable test depends on the context. This questionnaire is intended to assist employers in making a determination as to how to classify certain workers in different contexts.