There is a fast-tracked bill quickly making its way through the legislative process that has the potential of affecting lawyers and the way they work and run their offices. The New Jersey State Bar Association has expressed concerns (Read NJSBA testimony here) about it and is asking our colleagues in the legal community to lend their voices to the effort.
A-5936 (Egan)/S-4204 (Sweeney) attempts to codify an “ABC test” currently used to determine if an individual should be classified as an employee or an independent contractor for purposes of “all state employment laws.” It is currently awaiting vote in the Senate and is awaiting consideration in the Assembly Appropriations Committee.
The NJSBA believes the original ABC test has been used for many years, is well-established and has been well-interpreted through case law.
The NJSBA believes this bill, as currently drafted, will make changes to that well-established test that will have far-reaching implications. The measure will increase costs for small businesses (including solo and small-firm attorneys), non-profits and other “gig economy” industries that rely on the ability to hire people to meet the demands of the business at the time. It will also impact law firms that hire attorneys as-needed to engage in document review and other project-oriented work, and individuals who seek flexible work arrangements for personal or other reasons.
If you agree with the concerns, please reach out to legislators to express those concerns, and urge your members to reach out to their local legislators with their personal stories of how the proposal might affect them or their clients. Those personal stories are the most persuasive. CLICK HERE for a current legislative roster. The bill is on track to be passed before the current legislative session ends in just a few weeks, so time is of the essence.
Please feel free to contact Sharon Balsamo, NJSBA General Counsel (at [email protected] or 732-937-7505) or Lisa Chapland, NJSBA’s Director of Government Affairs (at [email protected] or 732-214-8510) if you have any questions or need more information.
Read the bills here: S4204/A5936.
Read the NJSBA’s testimony here.
Read more background here.