Labor

Construction crew wins misclassification case

Workers labeled as contractors received benefits and back pay.

The questionAre you an employee or a contractor if the company sets your hours and supplies your tools?

Illustrative example

Cranes over a large construction site
Photo: Wikimedia Commons (CC0)

A construction company will pay $760,000 in back pay and benefits and reclassify its crew as employees, settling a state labor case.

The company had paid the crew as independent contractors while setting their schedules and supplying their tools.

Overtime, benefits and unemployment-insurance coverage were at stake.

Marvessa Law documented the company's control over the crew's daily work under New Jersey's test for employee status.

The settlement provides $760,000 in back pay and benefits, and the crew has been reclassified as employees.

Some claims fell outside the limitations period.

Whether a worker is an employee depends on the working relationship, not the paperwork.

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