In a recent decision in Bailey v. Millennium Group of Delaware et al, the U.S. Court of Appeals for the Third Circuit confirmed that the ABC Test – long used by the New Jersey Department of Labor – sets forth the proper analysis for determining whether a worker is an employee or an independent contractor under the State’s wage and hour laws.
Anthony Bailey was hired in 2014 by Millennium Group (Millennium) to work as a stock Associate at a facility owned by NRG Energy, Inc. (NRG). In March 2017, Bailey was fired for breaching security protocols after opening a locked door for an employee, who had been terminated earlier that same day.
In 2018, Bailey brought claims against Millennium and NRG alleging that his termination was motivated by racial discrimination in violation of Title VII of the Civil Rights Act of 1964 (Title VII) and the New Jersey Law Against Discrimination (NJLAD). The District Court granted NRG’s subsequent motion to dismiss these claims against it, without prejudice, because Bailey had not sufficiently alleged that he had an employment relationship with NRG.
Bailey filed an amended complaint, attempting to adequately allege that he had an employment relationship with NRG. In addition to the Title VII and NJLAD claims, the amended complaint added claims against NRG under 42 U.S.C. § 1981, which, among other things, prohibits racial discrimination by parties to a contract. It also alleged violations of the New Jersey Wage Theft Act. NRG moved,...
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