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New Jersey signs deal with DOL to fight misclassification; $80 million-plus in underreported taxes

August 13, 2018

New Jersey and the US Department of Labor announced today they will work together to target misclassification of employees as independent contractors. It’s a problem they say has resulted in more than $80 million in underreported tax contributions since 2010 in New Jersey alone.

“In New Jersey, we promote fairness and fight discrimination,” New Jersey Gov. Phil Murphy said. “Today’s action is another great step forward to ending a practice that is not only unfair, but illegal.”

The deal was signed by the New Jersey Department of Labor and Workforce Development and the Department of Labor and aims to increase cooperation with efforts to combat misclassification.

It will promote coordinated investigations and share resources — and aims to send a message to businesses that misclassification laws will be strictly enforced.

“The agreement we signed today with the New Jersey Department of Labor and Workforce will amplify the effectiveness of both agencies,” DOL Wage and Hour Division Regional Administrator Mark Watson.  “The US Department of Labor looks forward to improving coordination and increasing joint outreach and compliance assistance efforts with all of our state partners.”

In addition, the governor’s Task Force on Employee Misclassification held its inaugural meeting, bringing together several agencies aimed at curtailing misclassification.

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