Governor Murphy’s Task Force on Employee Misclassification released its report this week which examined the rise in the gig economy and workers who are labeled as independent contractors. The Murphy Administration said thousands of workers are impacted by this and that the state is losing out on millions in tax dollars as a result.
According to the New Jersey Department of Labor, more than 12,000 workers were mislabeled last year and as a result more than $462 million in wages were underreported to the state. The task force made 16 recommendations for how to address the issue and Gov. Murphy said his administration has already moved half of them forward.
New Jersey signed an agreement with Pennsylvania and Delaware on this issue to step up enforcement and to share data for companies who operate in multiple states. The Division of Consumer Affairs has been training its investigators on misclassification of workers and the state sent a letter to more than 20,000 accountants asking them to speak with their clients about this issue.
To read the report, click this link.