NJ AB 3694

Author

Annette Quijano
985 Stuyvesant Ave.
Union, NJ 07083
908-624-0880

Author Detail Link
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Bill Text

Category

Employee Misclassification

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State

NJ

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Summary

Revises exemption from "unemployment compensation law" for operators of certain motor vehicles.

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Issue

This bill provides that services performed by an operator of a motor vehicle are not covered by the unemployment compensation law, if the vehicle is licensed for commercial use under federal transportation regulations; the operator owns the vehicle or leases or finances the purchase of the vehicle through an entity which is independent of the entity for which the services were performed; the motor carrier complied with federal Form 1099 reporting requirements with respect to compensation paid to the operator of the motor vehicle; and there is a written lease with a motor carrier, which complies with federal leasing regulations. The bill also makes each individual operator who meets these criteria both ineligible for unemployment insurance (UI) benefits and not subject to UI taxes. The exemption applies without regard to requirements of the federal UI law. The bill also removes the current exemption from UI coverage for operators of commercially-licensed motor vehicles weighing 18,000 pounds or more used for highway movement of motor freight, who own, or lease or finance the purchase of, the vehicle through an independent entity, and are compensated by a share of gross revenue or according to a schedule of payments based on the distance and weight of shipments.

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Notes

Died upon adjournment.

History

05/19/2016 Introduced. Referred to Assembly Committee on Transportation and Independent Authorities. Combined with AB 1912 as committee substitute.