Independent Contractor Misclassification and Compliance News April 2025

As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we bring you the latest news stories from around the web.

New York Considers Giving the Commissioner of Labor the Power to Issue Stop-Work Orders to Employers Found to Knowingly Misclassify Workers

The New York Senate passed a bill, S1514, that would give the Commissioner of Labor the power to issue stop work-orders to employers who knowingly misclassify employees as independent contractors. This bill is similar to a New Jersey statute passed in 2021, New Jersey P.L. 2021, c. 165, July 8, 2021 Assembly Bill, No. 5890)

The New York bill will allow the Commissioner of Labor (the “Commissioner”) to issue stop-work orders against employers for misclassification of employees as independent contractors.

The bill provides that the Commissioner must conduct an investigation and determine that an employer has knowingly misclassified employees as independent contractors and then notify the employer in writing of their intention to issue a stop-work order. After receipt of the notice, the employer has 72 hours to come into compliance and notify the Commissioner.

If the employer does come into compliance, the Commission will issue a stop-work order requiring the employer to stop operations at every location where the violation occurs. The stop-work order remains in effect until the Commission finds that the employer has come into compliance.

New Jersey enacted a similar statute in 2021. The commissioner of the New Jersey Department of Labor and Workforce Development has issued stop work orders mostly against construction companies, but also against a convenience store and a used car dealer.

The New Jersey law and New York bill require the respective departments of labor to give employers notice before issuing the stop-work orders. Employers that engage with independent contractors would be well advised to have a robust process for classifying workers to ensure that they are classified correctly.

For more information, check out our resources page on misclassification and compliance. If you have any questions about engagement, classification, or management of your independent workforce, we’re always here to help.