In East Bay Drywall, LLC v. Dep’t of Lab. & Workforce Dev., the New Jersey Appellate Division revisited the “ABC Test” used to classify whether a company’s service providers are its employees or independent contractors for purposes of liability for contributions to the state unemployment and temporary disability compensation fund. The “ABC Test” is named after the statutory subsections containing the elements in N.J.S.A. 43:21-19(i)(6)(A), (B), and (C). The Appellate Division held that a single-member LLC is not a “disregarded entity” for purposes of the ABC Test as it would be for certain tax purposes. Thus the matter was remanded for recalculation of contributions owned.
