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Hargrove et. al. v. Sleepy's, LLC

Articles Discussing Case:

NJ Employers Dealt Another Blow in Classifying Independent Contractors

Goldberg Segalla LLP • January 30, 2015
The New Jersey Supreme Court recently confirmed that the “ABC” test is the one to be used by employers to determine whether someone is an independent contractor under wage and hour laws, further eroding the ability of employers to classify individuals as independent contractors. In Hargrove v. Sleepy’s LLC (No 10-cv-1138), the Third Circuit certified a question of law to the New Jersey Supreme Court regarding the appropriate test to determine independent contractor status under the New Jersey Wage and Hour Law and Wage Payment Law. In a unanimous decision, the Supreme Court held the more restrictive ABC test to determine whether someone should be classified as an independent contractor.

Being Classified as an Employee in New Jersey is Now as Easy as ABC for Wage and Hour Purposes

Ogletree Deakins • January 19, 2015
In a unanimous decision, the New Jersey Supreme Court recently adopted the employee-friendly “ABC” test to determine whether an individual is an employee or an independent contractor under New Jersey’s Wage Payment Law (which governs the time and manner of payment of wages due to employees) and Wage and Hour Law (which establishes the state’s minimum wage and overtime law). The ABC test is broader than the “economic realities” test used for federal Fair Labor Standards Act (FLSA) purposes and increases the likelihood that a New Jersey worker classified as an independent contractor will be found to be an employee for purposes of state minimum wage, overtime, and other provisions governing the time and mode of payment to workers. Hargrove v. Sleepy’s, LLC, No. A-70-12 (N.J. Jan. 14, 2015).

New Jersey Supreme Court Restricts Ability to Label Workers as Independent Contractors

FordHarrison LLP • January 15, 2015
Executive Summary: On January 13, 2015, the New Jersey Supreme Court issued a unanimous decision that will likely have a far reaching effect on employers by severely limiting their ability to classify workers as independent contractors. In Hargrove et. al. v. Sleepy's, LLC, the Court held that the "ABC" test, derived from the New Jersey Unemployment Compensation Act, governs whether a plaintiff is an employee or an independent contractor for purposes of resolving a wage-payment or wage-and-hour claim under New Jersey law.

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