Earlier this year, the New Jersey Supreme Court held that the “ABC test” should apply to determine whether a worker is an “independent contractor” for the purposes of the New Jersey Wage Payment Law and the New Jersey Wage and Hour Law.
As expected, the decision regarding the “ABC Test” is already having a significant impact on employment suits.
In the wake of the precedential decision, the Third Circuit Court of Appeals has revived a putative class action against Sleepy’s, LLC. The plaintiffs in the case worked as delivery drivers for the mattress retailer. Their federal employment lawsuit alleges that they suffered various financial and non-financial losses as a result of defendant’s misclassification of them as independent contractors, rather than employees. The plaintiffs each signed an Independent Drive Agreement, which they maintain was designed to deny them employee benefits.
As previously discussed on the Scarinci Hollenbeck Business Law Blog, the ABC test presumes that an individual is an employee unless an employer can show that:
The employer neither exercised control over the worker, nor had the ability to exercise control in terms of the completion of the work;
The services provided were either outside the usual course of business or performed outside of all the places of business of the enterprise; and
The individual has a profession that will plainly persist despite termination of the challenged relationship.
Failure to satisfy any one of these three criteria results in an “employment” classification.
While the three-factor test is fairly straightforward, it assumes that a worker is an employee. As a result, employers like Sleepy’s often have an uphill battle when defending wage and hour suits.
John M. Scagnelli Re-Elected to LSRPA Board of Trustees
Scarinci Hollenbeck is pleased to announce that Partner John M. Scagnelli has been re-elected to serve on the Board of Trustees of the Licensed Site Remediation Professionals Association (LSRPA) for an additional two-year term. LSRPA is the statewide professional organization representing New Jersey’s Licensed Site Remediation Professionals (LSRPs), playing a central role in advancing environmental […]
Robert E. Levy Re-Certified as Civil Trial Attorney by the Supreme Court of New Jersey
Scarinci Hollenbeck is pleased to announce that Robert E. Levy has been re-certified as a Certified Civil Trial Attorney by the Supreme Court of New Jersey. This re-certification, combined with Levy’s existing designation as a Certified Criminal Trial Attorney, places him among less than one percent of all certified attorneys in New Jersey to hold […]
Scarinci Hollenbeck Partner Donald M. Pepe Named to ROI-NJ’s 2025 Real Estate Influencers List
Scarinci Hollenbeck, LLC is pleased to announce that Donald M. Pepe, a partner in the firm’s Real Estate, Land Use and Development Group, has once again been named to ROI-NJ’s Influencers: Real Estate list for 2025. Donald Pepe has been included on the ROI Influencers: Real Estate list each year since 2022, reflecting his continued […]
Scarinci Hollenbeck Announces Three Attorney Promotions for 2026
Scarinci Hollenbeck, LLC announces the promotion of three attorneys effective January 1, 2026: Samantha L. Blake and Brittany P. Tarabour to Counsel, and Kevin M. Cuddihy to Senior Associate. The following summarizes each attorney’s practice and experience. Samantha L. Blake Promoted to Counsel Samantha L. Blake has been promoted to Counsel and practices out of […]
NJBIZ Features Two Scarinci Hollenbeck Partners on the 2026 Commercial Real Estate Market Forecast
Scarinci Hollenbeck real estate partners Donald Pepe and Joe DeMarco were recently interviewed by NJBIZ reporter Kimberly Redmond for a feature examining what may shape the commercial real estate market in 2026. The article explores several issues currently influencing development and investment decisions across New Jersey, including redevelopment considerations, regulatory and financing pressures, emerging asset […]
Scarinci Hollenbeck Partner Angelo Auteri Receives the Michael A. Pane Ethics in Government Award
Little Falls, New Jersey — Scarinci Hollenbeck, LLC is pleased to announce that Partner Angelo Auteri has been awarded the Michael A. Pane Ethics in Government Award, one of New Jersey’s most esteemed recognitions for integrity and professionalism in public service. The award was presented on Thursday, November 20th during the New Jersey State League […]
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