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The Legislature is considering bills to expand the definition of “employee” to extend minimum-wage, unemployment and other benefits to many individuals who otherwise would be deemed freelance workers. S-4204 and its Assembly counterpart, A-5936, remove one of the exceptions from New Jersey’s long-standing “ABC” test established by N.J.S.A. 43:21-19(i)(6)(A)-(C) to distinguish employee from independent contractors. Under the test as it now stands, an individual who performs services for remuneration is deemed an employee unless: (a) the individual is “free from control or direction” in the performance of the work; (b) the services performed are “outside the usual course of the business for which such service is performed or … performed outside of all the places of business of the enterprise for which the services are performed;” and (c) the individual is “customarily engaged in an independently established trade, … or business of the same nature as” the work performed.

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