NJ AG Grewal Files Brief to Protect Workers, State's Ability to Enforce Misclassification Laws
Trenton, NJ (WorkersCompensation.com) - Acting to protect New Jersey workers and preserve the State's ability to enforce its labor laws, Attorney General Gurbir S. Grewal yesterday filed a brief urging a federal appeals court to rule that New Jersey's test for classifying workers as employees or independent contractors is not preempted by federal law.
Attorney General Grewal's amicus brief before the U.S. Court of Appeals for the Third Circuit was filed on behalf of the New Jersey Department of Labor and Workforce Development in a case involving delivery drivers who claim their employer, American Eagle Express (AEX), misclassified them as “independent contractors” and used that misclassification to avoid compliance with New Jersey wage and hour laws.
While Plaintiffs assert that they meet the criteria for “employees” under New Jersey's established test, AEX has argued that the 1994 Federal Aviation Administration Authorization Act (FAAAA) – a law governing the federally-regulated motor carrier industry – preempts that test. Attorney General Grewal's amicus brief rejects that argument and asks the court to deny AEX's attempt to use the FAAAA as a “preemptive sword” that could inflict economic and social harms never intended by Congress.
“Workers are the backbone of New Jersey, and I am proud to defend not only them, but also our state's labor laws and our economic interests in court,” said Attorney General Grewal. “Misclassification of our workers means those workers lose wages and benefits they rightfully deserve, is unfair to the employers that play by the rules, and ultimately harms the state itself. Our state labor laws were intended to protect workers from these harms, and nothing in federal law prevents us from going after the companies that violate them.”
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