New Jersey Court Rules in Support of Independent Contractors in Worker Classification Case

This week, the New Jersey Supreme Court unanimously ruled in the case Kennedy v. Weichert that independent contractor agreements entered by real estate brokers and salespersons are enforceable under New Jersey law, and that independent contractors are not subject to New Jersey’s Wage Payment Law, and that the independent contractor agreements are dispositive of a salesperson’s classification status under the New Jersey Broker’s Act.

This case is a major victory for the real estate industry because the court upheld the validity of the independent contractor agreement and determined that the plaintiff was properly classified as an independent contractor and not an employee for state law purposes. This ruling also is consistent with New Jersey law, which provides that the ABC Test does not apply to real estate salespersons, provided that the relationship is defined via a written agreement.

NAR will continue to provide updates regarding independent contractor matters. To learn more about this and other legal cases, please see NAR’s Legal Action News Feed.