The New Jersey Supreme Court, in a unanimous ruling in Hargrove v. Sleepy’s, said the U.S. Court of Appeals for the Third Circuit should continue using the “ABC” test in wage-and-hour disputes. That test, which comes from the New Jersey Unemployment Compensation Act, has been used for 20 years by the New Jersey Department of Labor to define employees and independent contractors.

One of the plaintiff’s attorneys said this ruling was a major victory for workers—by making the state more “worker-friendly”—and puts New Jersey in a select group of states that have adopted the “ABC” test.

Not everyone agreed with that assessment. “This is a significant change in the law,” said attorney Denise Keyser representing The Academy of New Jersey Management Attorneys who participated as amicus. “Employers around the state are going to be disappointed with this decision. They are going to have to re-evaluate their relationships with their employees and contractors.”

Related Practices

Labor and Employment