Employer Vs. Independent Contractors? How Do I Decide?

Testing your employees

A: Small business owners must perform their own due diligence when hiring and classifying workers. Owners who currently use independent contractors should consider reviewing the nature of their relationships with them.

Before classifying your workers as Independent Contractors, New Jersey employers should ensure their workers satisfy what is known as the “ABC” test:

(A) The worker is free from control and direction in the performance of the services offered; and

(B) The work your worker is doing is not part of your usual course of business; and

(C) The worker is regularly and customarily engaged in an independent business or trade for others.

All New Jersey employers classifying any worker as an Independent Contractor must ensure all three requirements are satisfied.

Before classifying workers as independent contractors, employers should consider: