NJ S1338

Replaces New Jersey's existing "ABC test" for classifying workers as employees or independent contractors with a new multi-factor test based on IRS guidelines

The new test requires consideration of three categories of evidence: behavioral control, financial control, and the type of relationship between the parties

Eliminates the current presumption that workers are employees unless employers prove all three ABC test criteria (freedom from control, service outside usual business course, and independently established trade)

Applies to worker classification under unemployment compensation, temporary disability benefits, wage payment laws, and state income tax withholding requirements

Takes effect 90 days after enactment and directs the Division of Unemployment and Temporary Disability Insurance to follow IRS guidance when making employment status determinations