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A New Jersey law will make it harder for small businesses to use independent contractors
Not sure how/if this will affect agents appointed through a downline?
Not sure how/if this will affect agents appointed through a downline?
A New Jersey law will make it harder for small businesses to use independent contractors
- Thread starter Northeast Agent
- Start date
- 2,766
Some day I'm gong to read an article about a "law" that provides a link to the law so one can read the actual statute. I just hope I live that long.
Anyway, it appears that NJ's new law includes enforcing the ABC test which is already the law in other states and is not new in NJ. The NJ Supreme Court addressed it in Hargrove v. Sleepy's LLC (2015). The following contains the opinion of the court.
https://www.wagehourblog.com/files/2015/01/Hargrove-v-Sleepys-LLC.pdf
According to the court:
"The "ABC" test presumes an individual is an employee unless the employer can make certain showings regarding the individual employed, including:
(A) Such individual has been and will continue to be free from control or direction over the performance of such service, both under his contract of service and in fact; and
(B) Such service is either outside the usual course of the business for which such service is performed, or that such service is performed outside of all the places of business of the enterprise for which such service is performed; and
(C) Such individual is customarily engaged in an independently established trade, occupation, profession or business."
All three of those elements must be satisfied to result in a classification of independent contractor.
An comprehensive explanation of each can be found starting on Page 18 of the opinion.
Whether an agent appointed through a downline is an employee or independent contractor should be easy to determine by applying the ABC test to the relationship between that agent and whoever appointed him.
Perhaps you can explain what "appointed through a downline" means.
Anyway, it appears that NJ's new law includes enforcing the ABC test which is already the law in other states and is not new in NJ. The NJ Supreme Court addressed it in Hargrove v. Sleepy's LLC (2015). The following contains the opinion of the court.
https://www.wagehourblog.com/files/2015/01/Hargrove-v-Sleepys-LLC.pdf
According to the court:
"The "ABC" test presumes an individual is an employee unless the employer can make certain showings regarding the individual employed, including:
(A) Such individual has been and will continue to be free from control or direction over the performance of such service, both under his contract of service and in fact; and
(B) Such service is either outside the usual course of the business for which such service is performed, or that such service is performed outside of all the places of business of the enterprise for which such service is performed; and
(C) Such individual is customarily engaged in an independently established trade, occupation, profession or business."
All three of those elements must be satisfied to result in a classification of independent contractor.
An comprehensive explanation of each can be found starting on Page 18 of the opinion.
Whether an agent appointed through a downline is an employee or independent contractor should be easy to determine by applying the ABC test to the relationship between that agent and whoever appointed him.
Perhaps you can explain what "appointed through a downline" means.
- Thread starter
- #3
- 2,121
adjusterjack said:
Perhaps you can explain what "appointed through a downline" means.
I probably worded this totally wrong, and should have used "upline," anyway.
For example, a new agent works in an office and is a 1099. He/she is commission-only, no benefits but has to work the hours the boss says. The boss, seasoned agents and support staff leave at 5pm, but the new agent is there late evenings and Saturdays in the dingy office to accommodate clients. It's mostly phone work. cold calling and appointment setting.
Boss tells the employee he himself indeed paid his dues and bartended for a few years while building up his book. Agent asks to attend networking events. Boss bedrudgingly allows this to plug his agency. Agent attends a few meetings, by meeting other agents learns the boss is indeed a jerk and escapes the s%^&*$#@ agency.
Perhaps you can explain what "appointed through a downline" means.
I probably worded this totally wrong, and should have used "upline," anyway.
For example, a new agent works in an office and is a 1099. He/she is commission-only, no benefits but has to work the hours the boss says. The boss, seasoned agents and support staff leave at 5pm, but the new agent is there late evenings and Saturdays in the dingy office to accommodate clients. It's mostly phone work. cold calling and appointment setting.
Boss tells the employee he himself indeed paid his dues and bartended for a few years while building up his book. Agent asks to attend networking events. Boss bedrudgingly allows this to plug his agency. Agent attends a few meetings, by meeting other agents learns the boss is indeed a jerk and escapes the s%^&*$#@ agency.
