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New Laws For 2021: A5892 (New Jersey)

 

On July 8th, New Jersey Governor Phil Murphy signed several pieces of legislation into law, one of them being A5892 which makes it unlawful for employers in the state to misclassify workers for the purpose of evading insurance premiums.

As an attorney that has handled my fair share of insurance premium disputes (including audits of commercial general liability policies), I can tell you it is not uncommon for employers to misclassify (intentionally or otherwise) workers as contractors rather than employees in an effort to lower their insurance premiums.  However, as any good audit will discover, workers that should have been designated as employees rather than contractors will result in a higher premium being assessed against the insured (the employer.)

This new law seeks to ferret out some of those issues by making these misclassifications unlawful.


For a copy of the text of A5892:  https://www.njleg.state.nj.us/2020/Bills/A9999/5892_I1.HTM

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