New Jersey Client Employers and Labor Contractors Share Responsibility for Violations of State Wage and Hour and Employer Tax Laws

New Jersey Governor recently signed Assembly Bill 5840, which imposes joint and several liability on client employers and labor contractors who provide workers to such client employers for violations of State wage and hour laws or State employer tax laws. Furthermore, the law provides that a waiver of the new provisions is contrary to public policy, and therefore void and unenforceable.

This new law is effective immediately, so client employers and labor contractors alike should review and update their service contracts and policies to ensure compliance with New Jersey wage and hour laws and employer tax laws, including provisions concerning the misclassification of workers, as both parties may be held liable as the employer for violations.  

This blog article is intended for general informational purposes only and should not be construed as legal advice or opinion. Contact myHRcounsel with questions concerning specific facts and circumstances.