New Jersey Enforces $250 per Employee, Increasing to $1,000 Subsequent Violations

Companies that misclassify independent contractors are now subject to increased fines and penalties. Can businesses afford $250 per employee for a first violation and up to $1,000 per employee for subsequent violations? To make matters worse, misclassified employees can be paid up to 5% of the worker’s gross earnings for the past year, and when you need to lay off workers to downsize, mandatory severance pay will break the bank. These major changes are effective immediately in New Jersey, read ReedSmith’s article here.