It’s the largest payment the state has received in a misclassification case, it said.
the state has received in a misclassification case, it said.as gig workers from 2014 to 2018, “depriving them of crucial safety-net benefits such as unemployment, temporary disability and family leave insurance, and failed to make required contributions toward unemployment, temporary disability and workforce development.”past-due contributions to the unemployment trust fund“For over a century, our governors, legislatures and voters have made New Jersey one of the best states for workers.
When a worker is misclassified as an independent contractor, they lose the rights that employees have, such as overtime pay, workers’ compensation coverage, unemployment benefits, earned sick leave and other benefits, the state said. “They are not protected by workplace safety laws, equal pay protections and a host of other employment-related rights we so often take for granted,” the Labor Department said. “Employers who misclassify workers as independent contractors skip their contributions to the UI trust fund, leaving every other employer in the state to pay for their delinquency.”
States are required to audit 1% of businesses each year for compliance with contributions to the unemployment trust fund.in past-due trust fund contributions plus penalties and interest of up to $119 million, “but those figures were rough estimates based on incomplete data, as allowed by law, because the companies did not cooperate and share their complete payroll records during the audit,” the Labor Department said.
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