John Shahdanian Quoted in Law360 Article on New Jersey’s Three-Prong ABC Test

John Shahdanian II, Chair of Trenk Isabel Siddiqi & Shahdanian’s Labor and Employment Law practice and Co-Chair of the firm’s Government Representation practice, was quoted in the Law360 article “NJ’s ABC Test Rule Is Scaled Down But Still Burdensome” regarding New Jersey’s finalized ABC test rule for classifying workers as independent contractors.

The article discusses the New Jersey Department of Labor and Workforce Development’s newly codified rule, which is scheduled to take effect October 1, and provides guidance on how to apply the state’s three-pronged ABC test for independent contractor classification. Shahdanian notes that there were positive updates to the rule from its initially proposed format, but that it is “still more onerous in terms of the burden that it’s on the employers or on the businesses to demonstrate that people are actually independent contractors.”

Shahdanian also explained that while formalizing the rule provides additional guidance for employers moving forward, questions may remain regarding how businesses determine whether a worker is in an independently established trade or profession.

The new rules are codified in the New Jersey Administrative Code 12:11. Shahdanian encourages employers to audit any current contractor relationships and review agreement terms to avoid exposure to misclassification penalties.

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