S2782

An Act concerning independent contractor status of certain regulated professions and supplementing Title 34 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. Notwithstanding any law, rule, or regulation to the contrary, a person shall not be classified as an employee for any purpose under any law, rule, or regulation of this State if:

(1) the person performs services pursuant to a written agreement that describes the person as an independent contractor, which shall apply for the duration of the written agreement; and

(2) the person is:

(a) an insurance producer licensed by the Department of Banking and Insurance under the “New Jersey Insurance Producer Licensing Act of 2001,” P.L.2001, c.210 (C.17:22A-26 et seq.);

(b) a broker-dealer, agent, investment adviser, or investment adviser representative registered or regulated by the New Jersey Bureau of Securities pursuant to the “Uniform Securities Law (1997),” P.L.1967, c.93 (C.49:3-47 et seq.), or registered or regulated by the federal Securities and Exchange Commission pursuant to the provisions of the “Securities Act of 1933,” (15 U.S.C. s.77a et seq.), the “Securities Exchange Act of 1934,” (15 U.S.C. s.78a et seq.), the “Investment Company Act of 1940,” (15 U.S.C. s.80a-1 et seq.), or the “Investment Advisers Act of 1940,” (15 U.S.C. s.80b-1 et seq.);

(c) an individual who operates a motor vehicle to deliver or pick up freight from a marine terminal or rail facility and satisfies the criteria for exemption from the definition of “employment” as defined under R.S.43:21-19(i)(7)(X); or

(d) in compliance with the criteria for exemption from the definition of “employment” as defined under R.S.43:21-19(i)(7)(J) in order to be deemed an independent contractor under the “unemployment compensation law,” R.S.43:21-1 et seq.

b. Notwithstanding any law, rule, or regulation in the State, the regulated or licensed professionals included in subsection a. of this section shall not be required to satisfy any additional test to be deemed an independent contractor, including, but not limited to, the tests set forth at or applied to P.L.1965, c.173 (C.34:11-4.1 et seq.) and the “New Jersey State Wage and Hour Law,” P.L.1966, c.113 (C.34:11-56a et seq.).

2. This act shall take effect immediately and shall apply retroactively to any written agreement entered into before or after the effective date of this act for the purpose of enforcing but not changing the terms of that agreement.

STATEMENT

This bill clarifies that certain licensed or regulated professionals may be treated as independent contractors if they operate under a written agreement that describes the person as an independent contractor.

The bill applies to the following regulated or licensed professionals:

(1) licensed insurance producers;

(2) broker-dealers, agents, investment advisers, and investment adviser representatives registered by the New Jersey Bureau of Securities or the federal Securities and Exchange Commission;

(3) individuals who operate motor vehicles to deliver or pick up freight from a marine terminal or rail facility and who meet the criteria for exemption under the unemployment compensation law; and

(4) individuals who meet the criteria for exemption from the definition of “employment” as defined under R.S.43:21-19(i)(7)(J).

A person in a profession captured under the bill, who is covered by a written agreement identifying them as an independent contractor is not considered an employee for any purpose under any law, rule, or regulation during the period of the written agreement. Individuals under the bill are not required to satisfy any additional test to be recognized as an independent contractor under any other law, rule, or regulation, including, but not limited to, the State wage payment law and the “New Jersey State Wage and Hour Law.”

The intent of the Legislature is to confirm that professionals such as insurance producers, broker-dealers, investment advisers, and others identified in the bill, when operating under agreements to be independent contractors, have not historically been treated as employees under State law. This bill enforces that understanding and retroactively applies its provisions to any past agreements regarding that relationship.