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Independent Contractor Misclassification Lawsuits in New Jersey

When Your Employer Calls You an “Independent Contractor” But Treats You Like an Employee

If you are working as an “independent contractor” but your employer controls when, where, and how you work—you may actually be an employee under New Jersey law. This misclassification isn’t just a paperwork error. It is a violation of your rights that can cost you thousands of dollars in unpaid wages, overtime, and benefits. I am attorney Chris Keating, and I help New Jersey workers fight back when employers illegally misclassify them to avoid paying overtime wages and other legally-mandated benefits.

The Reality of Misclassification in New Jersey

Across New Jersey, employers commonly categorize workers as “independent contractors” when they should be classified as employees. This practice, known as misclassification, allows companies to avoid paying the minimum wage, overtime rates, unemployment insurance taxes, workers’ compensation premiums, and other legally required benefits. The result? Workers like you bear the financial burden while employers pocket the savings.

I’ve seen this happen to workers in every industry—from construction and trucking to delivery services and home care. If you are questioning whether you’ve been properly classified, you’re not alone. The good news is that New Jersey has some of the strongest worker protection laws in the country, and I’m here to help you understand and enforce your rights.

Christopher Keating

New Jersey’s Strict “ABC Test” – Why It Matters to You

New Jersey uses what’s called the “ABC Test” to determine whether you are truly an independent contractor or if you should be classified as an employee. This test is designed to protect workers, and it creates a strong presumption that you are an employee unless your employer can prove otherwise.

My practice focuses on addressing the full spectrum of wage and hour violations affecting New Jersey workers:

A

Freedom from Control

Your employer does not control how, when, or where you do your work. If they set your schedule, tell you what tools to use, require you to wear uniforms, or dictate how you perform your tasks, your employer likely fails this test.

B

Outside the Usual Business

The work you perform is either outside your employer’s main business or performed entirely away from their premises. If you are doing the same work the company sells to customers, this is a red flag. Your employer likely cannot establish that you are an independent contractor.

C

Independent Business

You operate your own established business in the same field. This means having multiple clients, your own business license, insurance, and the ability to profit or lose money based on your business decisions.
Your employer must prove all three conditions. If they fail even one, you are legally an employee under New Jersey law, regardless of what your contract says or what tax forms you receive.

Common Signs You Have Been Misclassified At Work

I often hear from workers who suspect they are misclassified by their employers.. They look at the day-to-day work with the employer and cannot figure out why they are labeled as contractors instead of employees. Here are the warning signs I look for:

  • Your employer controls your work: They set your hours, tell you how to do your job, require you to use their equipment or software, or prohibit you from working for competitors.
  • You only work for one company: True independent contractors typically have multiple clients. If you are financially dependent on one employer, that is a strong indicator of misclassification.
  • You do the company’s core work: If you are a driver for a delivery company, a construction worker for a construction company, or a cleaner for a cleaning service, you are likely performing the business’s main function.
  • You do not have your own business: You do not have a business license, business insurance, or advertise your services to others. You may have formed an LLC only because your employer required it. However, the employer is your only “client”.
  • You are treated like other employees: You attend staff meetings, receive performance reviews, or are included in company communications alongside W-2 employees.

The High Cost of Misclassification – What You Are Losing

When employers misclassify you as an independent contractor, you may be losing significant compensation. Here is what you may be entitled to recover:

Unpaid Minimum Wage and Overtime

If you have been working more than 40 hours per week without receiving overtime pay, you may be owed substantial back wages. New Jersey’s Wage and Hour Law and Wage Payment Law allow you to recover wages going back six years.

Liquidated Damages

Under the New Jersey Wage and Hour Law and Wage Payment Law, you can recover up to 200% of your unpaid wages as additional damages. This means if you’re owed $10,000 in back wages, you could recover up to $30,000.

Unemployment Benefits

Misclassified workers may have a difficult time applying for unemployment insurance benefits if their employment ends through no fault of their own, as the employer was not reporting the employment to the State or making appropriate contributions on behalf of the employee..

Workers' Compensation Protection

If you are injured on the job, you may initially be denied workers’ compensation benefits because of your misclassification.

Tax Savings

Independent contractors pay both the employer and employee portions of Social Security and Medicare taxes. As an employee, your employer should pay half of these taxes. If you are misclassified, you end up paying your employer’s share of the bill.

How I Can Help You Fight Back

When you work with me, you are not just getting an attorney—you’re getting someone who understands the complexities of New Jersey employment law and has successfully represented workers in misclassification cases. Here’s how I approach your case:

Free Initial Case Evaluation

I will conduct a preliminary review of your situation at no cost to determine if you have a potential misclassification issue and related unpaid overtime or retaliation claim. I will examine your work arrangement, contracts, and day-to-day responsibilities to assess your case.

Application of the ABC Test

I will rigorously apply New Jersey’s ABC Test to your situation, identifying where your employer fails to meet the strict requirements for independent contractor classification.

Thorough Investigation

I will gather evidence of your working relationship, including contracts, communications, work schedules, and witness statements in an attempt to build a strong case.

Recovery of All Damages

I will fight to recover not just your unpaid wages, but also liquidated damages and attorney’s fees and costs. The goal is to make you whole and hold your employer accountable.

Protection from Retaliation

If you were terminated or faced other retaliation for questioning or complaining about your misclassification, I may also be able to pursue whistleblower claims under New Jersey’s Conscientious Employee Protection Act (CEPA).

Understanding New Jersey’s Aggressive Enforcement

New Jersey does not take misclassification lightly. New Jersey has powerful tools to enforce these laws, including the ability to shut down businesses with stop-work orders and impose criminal penalties for wage theft. Recent settlements, such as Uber’s $100 million payment to resolve misclassification claims in 2022, show that even large companies are held responsible in enforcement proceedings.
Industries Where Misclassification Is Common
While misclassification can happen in any industry, I commonly see it in certain sectors:

Construction

Contractors often misclassify skilled tradespeople, even when they control the work and the workers use company tools and follow company schedules.

Transportation and Delivery

The rise of gig economy companies has led to widespread misclassification of drivers who are integrated into the company’s business model.

Home Services

Cleaning companies, landscaping services, and home repair businesses often misclassify workers who perform the company’s core services.

Healthcare

Home care agencies frequently misclassify caregivers who follow company protocols and care plans.

Technology

IT companies sometimes misclassify programmers and consultants who work on long-term projects under company direction.
If you work in any of these industries as a “contractor”, you should remain vigilant about potential misclassification.

Time Limits and Why You Must Act Quickly

All legal claims must be filed before the expiration of their respective statutes of limitations. While New Jersey’s Wage Theft Act allows you to recover unpaid wages going back six years, other claims have shorter time limits. It is crucial to act quickly because:

  • Evidence can disappear over time,
  • Witnesses’ memories fade,
  • Some claims have filing deadlines as short as one year,
  • The longer you wait, the more difficult it can become to prove your case and
  • A law firm may require weeks or months to evaluate and investigate your claims before making a decision on whether to file a lawsuit on your behalf.

Keating Law Firm offers free consultations to misclassified workers who believe they are owed overtime wages or who have suffered retaliation for complaining about their misclassified status or owed wages.. Even if you are still working for the employer, you have the right to challenge your classification and pursue owed wages without fear of retaliation.

What to Expect When You Contact Me

When you reach out to me, I understand you may be feeling overwhelmed or uncertain about your situation. I have helped many workers to understand their legal claims and create a plan for enforcing their rights. Here is what you can expect:

Unpaid Minimum Wage and Overtime

Our initial conversation is free and completely confidential. I will listen to your situation without judgment and explain your rights under New Jersey law.

Clear Explanation

I will explain the ABC Test in plain language and how it applies to your specific situation. My goal is for you to leave our meeting with a clear understanding of how the law applies to your unique circumstances.

Honest Assessment

When appropriate, I will give you my view of the strength and weaknesses of your case in terms of liability and damages. I will never promise results, but I will do my best to ensure you understand the factors that may lead to the final outcome of your matter.

No Upfront Costs

Keating Law Firm handles misclassification cases on a contingency fee basis, which means you don’t pay attorney’s fees unless the law firm successfully recovers money for you.

Your Rights Don’t End at Recovery

Winning your misclassification case is not just about getting the money you are owed—though that is certainly important. It is also about holding employers accountable and protecting other workers from the same violations. When we successfully challenge misclassification, we are sending a message that New Jersey workers’ rights will be enforced and protected.

If you are still working for the employer, New Jersey law protects you from retaliation for asserting your rights. If your employer does retaliate against you for filing a claim, that may amount to a separate violation of New Jersey’s whistleblower law, which could be the basis for an independent legal action.

Christopher Keating

Take Action Today

If you suspect you have been misclassified as an independent contractor, do not wait to get help. Every day that passes is another day your employer benefits from violating your rights. I am here to help you understand your options and fight for what you deserve.

Contact me today at (856) 519-5011 for a free and confidential consultation.. I will review your situation, explain your rights under New Jersey law, and assist you in deciding on the best path forward.

Do not let your employer continue to profit from your misclassification. Stand up for your rights and let Keating Law Firm help you get the compensation and justice you deserve.