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Tuesday, September 1, 2026

Highlighting Rising Liability for Employers, NJ Settles First Misclassification Suit Under New Law - Law.com

New Jersey has settled its first worker misclassification suit brought under a 2021 statute, and, according to one employment lawyer, the move highlights how companies could face a "double whammy" of liability over how they classify workers.

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Employers are well-served by a straightforward guiding principle: to the extent possible, document and take action based on actual work performance deficiencies and observable conduct, regardless of whether the employer suspects the employee may be under the influence of cannabis.

The case stems from Teaneck-based Cognizant’s contract with Google to update Google Maps. Cognizant, in turn, relies on staffing company Aceolutions, also a defendant in the case, to get drivers to verify Google Maps data. Google is not a defendant.

'Musker' left unanswered how to distinguish between commissions, which qualify as wages, and bonuses, which do not. The critical distinction between the two forms of compensation is not directly the subject of any binding New Jersey case law. We explore the issue in the meantime.

For New Jersey educational institutions in particular, the case may represent an early indication that courts will expect greater procedural integration across compliance,...



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