Question 1

Can a worker agree to be treated as a 1099 independent contractor?

Gordon Marzano · Accepted Answer

No. A worker's status depends on the actual nature of the working relationship, not on the worker's or the employer's preference. Even if the worker asks for 1099 status or signs an independent contractor agreement, the company can still face a misclassification claim if the role does not legally qualify for contractor status.

Question 2

What are the risks of misclassifying an employee as an independent contractor?

Gordon Marzano · Accepted Answer

Misclassification can lead to unpaid payroll taxes, wage and overtime claims, employee benefit claims, and penalties and interest. If a misclassified worker fails to pay required income taxes, it can also trigger state or federal tax audits and additional liability for the company.

Question 3

What is New Jersey's ABC test, and what's changing on October 1, 2026?

Gordon Marzano · Accepted Answer

New Jersey uses the ABC test to decide whether a worker is an employee or an independent contractor under state wage, hour, and unemployment laws. A worker is presumed to be an employee, and the business must satisfy all three prongs—freedom from control, work performed outside the usual course of business, and an independently established trade—to classify someone as a contractor. Updated state regulations clarifying how the test is applied take effect October 1, 2026.

Question 4

How often should we conduct an HR audit?

Gordon Marzano · Accepted Answer

As a general rule, an annual review works well for most businesses, with additional check-ins whenever the law changes or your company grows, restructures, or enters a new state. That said, the right cadence and depth vary from one employer to the next, which is exactly the kind of thing we help New Jersey businesses figure out. To talk through what makes sense for your organization, call Marzano Human Resources Consulting at 973-513-9916.

Question 5

What is an HR audit, and does my business need one?

Gordon Marzano · Accepted Answer

An HR audit is a structured review of your policies, pay practices, records, and day-to-day procedures to confirm they still line up with current law. Nearly every employer can benefit from one, but the right scope depends on your size, industry, and how your workforce is structured. If you haven't reviewed your handbook or classifications since before 2025, that's usually a strong sign it's time to take a closer look.

Question 6

Why is an HR audit especially important for New Jersey employers right now?

Gordon Marzano · Accepted Answer

Both New Jersey and federal employment law shifted significantly in 2025–2026 — from new pay-transparency and separation-reporting rules to changes in how discrimination claims and independent-contractor status are treated. As a result, policies that were compliant a year ago may already be outdated. An audit is the most efficient way to catch those gaps before they surface through a complaint or an agency inquiry.

Question 7

Does the NJ pay transparency law apply to my business if we're based outside New Jersey?

Gordon Marzano · Accepted Answer

Possibly. It covers any employer with 10+ employees over 20+ calendar weeks that does business, employs people, or takes applications in NJ, and those employees don't have to be located in the state.

Question 8

What are the penalties for non-compliance?

Gordon Marzano · Accepted Answer

Up to $300 for a first violation and up to $600 for each subsequent one, each role counted separately; employees can't sue directly, but a mishandled pay conversation can invite claims under other laws.

Question 9

What has to be included in a compliant job posting?

Gordon Marzano · Accepted Answer

The wage or salary (or a range with a real minimum and maximum), a general description of benefits, and any other compensation programs like bonuses, commissions, or equity.

Independent Contractor or Employee? New Jersey’s Updated ABC Test

Is It Time for an HR Audit? What New Jersey Employers Should Review Now

The Silent Guest in Your Meetings: AI Note-Takers, NJ Law, and Your Handbook

Why Reviewing Your Job Descriptions Regularly Isn’t Optional Anymore

NJ Pay Transparency Law: What Employers Must Know

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