NJ SB 121

Author

Joseph Pennachio
170 Changebridge Rd., Unit A1
Montville, NJ 07045
973-984-0922

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 bill 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

01/12/2016 Introduced in the Senate. Referred to Senate Committee on Labor.01/09/2017 Discussed in Senate Committee on Labor.