The New Jersey Supreme Court weighed the “less-obvious situation” whether a contractor’s workers are employees or are truly independent entities under the ABC test of the Unemployment Compensation Law, according to an opinion issued by the court.

East Bay Drywall LLC is a contractor operating a drywall installation business in Stone Harbor, Avalon, and Sea Isle. In June 2013, East Bay stopped reporting wages to the Department of Labor and Workforce Development, which spurred a status audit to determine whether East Bay workers hired between 2013 and 2016 were independent contractors or if they were considered employees.

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