Bill Text: NJ SR64 | 2012-2013 | Regular Session | Introduced
Bill Title: Requests Governor to have State participate in joint State and federal initiative against misclassification of employees as independent contractors.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2012-05-31 - Introduced in the Senate, Referred to Senate Labor Committee [SR64 Detail]
Download: New_Jersey-2012-SR64-Introduced.html
Sponsored by:
Senator STEPHEN M. SWEENEY
District 3 (Cumberland, Gloucester and Salem)
Senator LORETTA WEINBERG
District 37 (Bergen)
SYNOPSIS
Requests Governor to have State participate in joint State and federal initiative against misclassification of employees as independent contractors.
CURRENT VERSION OF TEXT
As introduced.
A Senate Resolution calling on Governor Christie to have the State participate in a joint State and federal initiative against the misclassification of employees as independent contractors.
Whereas, The practice by certain employers of misclassifying their employees as independent contractors in this State has had a serious adverse impact on the misclassified employees themselves, who are denied benefits, wages and protections to which they are entitled under law, such as family and medical leave, overtime, minimum wage, unemployment and disability insurance, workers' compensation, and protection against discrimination and unfair retaliation; and
Whereas, The misclassification of employees as independent contractors defrauds the State and taxpayers, including other employers, by evading the payment of payroll and other taxes; and
Whereas, The misclassification by certain employers of employees as independent contractors to avoid legally-required costs puts other, law-abiding employers who treat their employees fairly at a competitive disadvantage, with a price disadvantage of 10% to 20%, and even compels such law-abiding employers to subsidize employers who misclassify their employees by placing a heavier burden on the honest employers whose payroll taxes support social insurance programs; and
Whereas, New Jersey has historically taken a leadership roll among states by enacting strong legislation to penalize illegal misclassification with respect to unemployment insurance, workers' compensation, and in specific industries like construction; and
Whereas, The United States Department of Labor has joined with the Internal Revenue Service to launch a national Misclassification Initiative to work with the states to prevent illegal misclassification of employees as independent contractors; and
Whereas, Thirteen states, seeking to participate in this effort, have signed Memoranda of Understanding with the Wage and Hour Division of the United States Department of Labor, and in some cases, the Department's Office of Federal Contract Compliance Programs and the Office of the Solicitor; and
Whereas, The United States Department of Labor is seeking the participation of more states in the initiative; now, therefore,
Be It Resolved by the Senate of the State of New Jersey:
1. This House respectfully calls on Governor Christie to have the State of New Jersey participate in the Misclassification Initiative of the United States Department of Labor by entering into a Memoranda of Understanding with that department and its Wage and Hour Division, Office of Federal Contract Compliance Programs and Office of the Solicitor.
2. Duly authenticated copies of this resolution, signed by the President of the Senate and attested by the Secretary thereof, shall be transmitted to the Governor of New Jersey and the Commissioner of the Department of Labor and Workforce Development.
STATEMENT
This resolution calls on Governor Christie to have the State of New Jersey participate in the Misclassification Initiative of the United States Department of Labor by entering into a Memoranda of Understanding with that department and its Wage and Hour Division, Office of Federal Contract Compliance Programs and Office of the Solicitor. By doing so, New Jersey would join 13 other states working with the federal government to combat the illegal practice by some employers of misclassifying employees as independent contractors, which harms employees, reduces state revenues and puts law-abiding employers at a competitive disadvantage.
