The New Jersey Supreme Court’s recent decision in East Bay Drywall, LLC v. Department of Labor and Workforce Development, Docket No. A-7-21 (August 2, 2022), provides guidance as to the perils that may arise when businesses misclassify workers as independent contractors rather than employees. Under the state’s Unemployment Compensation Law (UCL), the “ABC Test” is used to determine whether certain workers are properly classified as employees or independent contractors. See N.J.S.A. 43:21-19(i)(6)(A)-(C). The court’s new decision is significant because it held that a contractors’ establishment of a separate corporate structure through which to render services may not suffice to establish independent contractor status under the ABC Test. READ MORE