Although neighboring states with common business interests and similar legislative cultures, New Jersey, Pennsylvania, Delaware and New York differ in their treatment of independent contractors and employers/employees, for purposes of their workers’ compensation rules and regulations. Among the many issues relevant for consideration include unemployment compensation benefits and President Joe Biden’s recent edict regarding workers in the “gig economy.” The classification tests are evolving, and in the minds of many, might suggest the need for uniformity. But ultimately, some regulations may be liberally construed to find employment where status as an employee was not previously contemplated. This factor will impact employers in many ways, most importantly, in their insurance purchasing decisions.

New Jersey

While the definition of an independent contractor defense for purposes of workers’ compensation in New Jersey is defined in a relatively short passage in the act, the caselaw has forced this short passage into all kinds of contortions. Section 36 of the act states, “Casual employment, which shall be defined, if in connection with the employer’s business, as employment of the occasion for which arises by chance or is purely accidental, or if not in connection with any business of the employer, as employment not regular, periodic or recurring … .” The defense of casual employment and independent contractor is equally strong and the courts have emphasized that distinguishing between the two is unnecessary.