The ABC’s of Worker Classification in New Jersey February 10, 2020 by Frank Monetti, CPA, MAcct One of the many issues that New Jersey businesses with workers face is whether individual workers are classified as employees or independent contractors. Independent contractors in New Jersey are not entitled to the same benefits as employees, such as minimum wage, overtime, paid leave, and unemployment benefits. Businesses have a financial incentive to classify individuals as independent contractors. While there are additional costs associated with employee benefits, there are no additional costs associated with independent contractors. In New Jersey, the ABC Test is used to decide if an individual is an employee or if they qualify as an independent contractor. Under the ABC test, which is part of New Jersey Unemployment Compensation law, an individual worker is considered an employee unless all three parts of the test are met. In other words, a worker must meet all three parts of the test to be considered an independent contractor. Part A requires that “such individual has and will continue to be free from control or direction over their performance of such service, both under his contract of service and in fact”. For example, an independent