On May 29, 2026, the U.S. District Court for the District of New Jersey found that while a certified class of performers on an adult streaming platform was correctly classified as independent contractors under the federal Fair Labor Standards Act (FLSA), the class did not meet the standard to be classified as independent contractors under New Jersey’s “more stringent” “ABC test.”

Quick Hits

• A federal district court in New Jersey ruled that adult performers on an online streaming platform are independent contractors under the FLSA but qualify as employees under New Jersey’s stricter ABC test.
• The court found that the performers could not be classified as independent contractors under the ABC test because they operated within the operator’s usual course of business and not outside its places of business by providing services on the operator’s online digital platform.
• The court explained that under New Jersey’s ABC test, an enterprise’s place of business includes any location where core commercial services are being executed, including online digital platforms.
• This decision highlights how it may be more difficult for employers to classify workers as independent contractors under New Jersey’s ABC test than under FLSA and has implications for gig economy companies.

In the case, Tomasello v. ICF Technology Inc., a group of adult entertainers who livestream on the “Streamate” digital platform asserted collective and individual claims under the FLSA, the New Jersey Wage and...

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