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Businesses with any New Jersey employees are responsible for withholding and paying income taxes, Medicare taxes, and Social Security, and paying payroll taxes on wages paid to their employees. However, in general, the same businesses do not have to do so when hiring independent contractors.

Therefore, it may be tempting for a business to classify all workers as independent contractors to avoid payments. However, the Internal Revenue Service and New Jersey Division of Taxation have stringent regulations to ensure that businesses correctly classify their workers. The IRS imposes significant penalties on businesses which have misclassified their workers as independent contractors.

A worker is an independent contractor if the “employer” has the right to direct only the result, but not the way in which the worker performs her job. For example, if a business hires a New Jersey attorney to sue another company for breach of a contract, the business does not direct the attorney on how to argue the case, what motions to file, etc. The client educates the attorney about the dispute and asks the attorney to work towards a certain result (recovering lost profits). Therefore, this attorney is a New Jersey independent contractor, not an employee.
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Pregnancy Discrimination
In 2011, the Equal Employment Opportunity Commission (“EEOC”) received the largest number of complaints of pregnancy discrimination in its history. Pregnancy discrimination has been increasing since at least 1992. Pregnancy discrimination in New Jersey, New York and nationally continues to be a major problem.

It is illegal to discriminate against pregnant mothers. Pregnancy discrimination in New York and New Jersey is barred by law. Employers may not refuse to hire pregnant women, fire pregnant women, or lay employees off because of their pregnancy, harass or transfer them because of their pregnancy, or shift them to work that is perceived as “safer” or “lighter.” The only exception is that transfers can be made as a legitimate accommodation for the specific medical needs of a particular employee.

Employers are permitted to ask the estimated delivery date and expected length of leave before and after delivery, but they are not allowed to ask for a specific date that pregnancy leave will begin. Employers must rehire mothers after delivery, and make reasonable accommodations beforehand.

New Jersey Law
New Jersey’s Law Against Discrimination bans discrimination based on “sex.” The New Jersey’s Supreme Court has ruled that sex discrimination includes discrimination based on pregnancy.

Federal Law
Title VII of the Civil Rights Act of 1964 likewise prohibits pregnancy discrimination. In 1978, Congress enacted the Federal Pregnancy Discrimination Act. The Federal Pregnancy Discrimination Act amended Title VII to include pregnancy discrimination as sex discrimination. It also prohibits discrimination based on medical conditions related to pregnancy. It provides that if an employer offers a health plan, pregnancy must be a covered condition. However, the Federal Pregnancy Discrimination Act, being part of Title VII, only covers employers with 50 or more employees.
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The spousal impoverishment provisions of the Medicare Catastrophic Coverage Coverage Act of 1988 changed the requirements for eligibility for Medicaid when only one spouse needs to enter a nursing home and is expected to stay in the nursing home for at least 30 days. The law’s purpose is to preserve some of the assets of the other spouse (the “at-home” spouse). The at-home spouse is permitted to retain one-half of all “countable assets” subject to a minimum of $22,728 and a maximum of $113,640 (this is called the “Community Spouse Resource Allowance”).

The couples’ assets must be analyzed prior to applying for Medicaid. This includes all assets owned by the spouses jointly or individually. The first thing to assess is which assets are countable assets under the Medicaid laws and regulations. The following assets are exempt (not countable): the marital home, personal belongings and household goods, one car or truck, income producing real estate, burial plots and related items, irrevocable prepaid funeral contracts, the value of life insurance policies where the aggregate face value of the policies is less than $1,500 (if the aggregate face value of the policies exceeds $1,500, then the cash value of the policies is countable). All other assets are countable. Examples of countable assets are: cash, savings accounts, checking accounts, certificates of deposit, U.S. Savings Bonds, IRAs, 401(k)s, 403(b)s, nursing home accounts, prepaid funeral accounts which can be cancelled, some trusts, additional cars (in excess of one), other real estate, boats, recreational vehicles, stocks, bonds, mutual funds, and mortgages held on real estate sold. The at-home spouse may retain the exempt assets and one-half of the countable assets up to $113,640. The remainder of the assets must be spent until only $2,000.00 remains.
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Thumbnail image for tax appeal.jpgA common question is how can property taxes be lowered? The answer is to file a tax appeal. In the current depressed real estate that the value of your home is often dramatically lower than the town has assessed it and you should appeal that assessment. In this economic climate, this is important to explore. A property tax appeal can drastically reduce your property tax payments. You can only appeal your tax assessment, i.e. the value the town assigns your property; you cannot lower your property tax rate.

To evaluate whether your property tax assessment is too high, first determine the fair market value of your property. Recent sales of similar properties in your neighborhood provide a good idea. Then you “equalize” your assessment to the fair market value of your property using your municipality’s “equalization ratio.” The equalization ratio is used to adjust for town-wide market fluctuations over time. Apply the equalization ratio to your assessed value to find the value the municipality has determined is the fair market value of your home (the “equalized market value” – this is usually not the same as the unequalized assessment in your tax bill). If the fair market value of your property is more than 15 percent less that the equalized market value, you should move forward with a tax appeal.
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Thumbnail image for Thumbnail image for baby.jpgBoth state and federal laws govern family leave in New Jersey. The Federal Family and Medical Leave Act (FMLA) and New Jersey Family Leave Act (FLA) have long provided 12 weeks of unpaid family leave for employees of employers with at least 50 employees. In 2008, New Jersey passed the New Jersey Paid Family Leave Act.

The Paid Family Leave Act mandates six weeks of paid family leave to care for a newborn or newly-adopted child, or to care for a family member with a serious health condition.

Eligible employees receive two-thirds of their salary (up to $524 per week). The benefits are paid by the State and funded by a tax from all employees’ paychecks; employers do not incur any direct costs.
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A qualified personal residence trust (QPRT) offers an opportunity for homeowners to minimize or avoid federal and New Jersey estate taxes. A QPRT allows a homeowner to transfer ownership of a primary or vacation home to a “grantor trust,” while keeping the right to live there for a specified period of time. When that specified time ends, ownership passes outright to the homeowner’s children or whoever is named as the remainder beneficiaries.

When you transfer your home into a QPRT, you make a gift to the beneficiaries which is subject to gift tax. The value of that taxable gift is not the full fair market value of the home, as it would be with an outright transfer. The value is discounted. In the current real estate market values are quite low, adding to the benefit of the QPRT. The gift is also discounted to reflect that you have retained an interest (the right to live in the home for the specified term). Internal Revenue Service tables and current interest rates are used to determine the amount of the discount. The federal gift tax exemption is currently $5,120,000.00 and you can utilize a portion of that exemption and pay no gift tax. As New Jersey does not have a gift tax, you can transfer the home without incurring any New Jersey gift tax.
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The United States Supreme Court recently ruled that a fired employee can sue his employer for the harm he suffered from “cat’s paw discrimination” because of his membership in the Army Reserve. Federal and state courts have ruled that “cat’s paw” liability applies in a wide variety of other New Jersey discrimination.

The Cat’s Paw.

In Aesop’s Fables, a monkey convinces a cat to pull chestnuts from a fire. The monkey then eats them, leaving the cat with burnt paws and no chestnuts. A “cat’s paw” case happens when a decisionmaker has no intent to discriminate herself, but fires or penalizes in reliance on another employee’s input which was motivated by discrimination. It is sometimes been called “subordinate bias” because it holds the employer responsible for the discrimination or retaliation of someone below the decisionmaker.

The Supreme Court and Cat’s Paw Discrimination Against Members of the Armed Forces.

The United States Supreme Court recently allowed a hospital employee who was fired because of his Army Reserve service to sue for “cats paw” discrimination.
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Many people in New Jersey ask, “I had a small party at my house and one of my guests drank alcohol and later got into a car accident, am I liable?” New Jersey homeowners also ask, “Can I get in trouble serving alcohol to a minor?” The short answer to both is yes.

In recent years society has become less tolerant of drunk driving and underage drinking, with many organizations taking on active roles in politics resulting in the passage of stringent laws related to alcohol. New Jersey is no exception. There is a strong public policy in New Jersey against serving minors and intoxicated adults.

First, hosts in New Jersey should be aware to never serve minors any alcohol. In New Jersey serving alcohol to a minor is disorderly persons offense and, depending on the circumstances, can also be a more serious criminal offense of endangering the welfare of a minor.

Further, in 1987 New Jersey passed a law on “social host liability,” making a host liable for injuries to a third-party for a guest’s actions if the host serves a guest, twenty-one years of age or older, alcohol when that person is “visibly intoxicated.” Therefore, if you serve alcohol in your home you should be aware of signs of intoxication, and, if they exist, you should immediately stop serving any “visibly intoxicated” person alcohol.
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Just about everyone has been called a name or had someone say something about them that wasn’t true, but when does that false statement become actionable defamation?

Under the law in New Jersey, defamation requires at least three people. It occurs when someone (“A”) makes a specific factual assertion about another (“B”) to a third person (“C”). The statement cannot be a joke or an expression of opinion; it must be something that is capable of being proven true or false, and which is actually false.

To establish a claim for defamation, B must show that A made an untrue statement of fact to C, that this statement included assertions that were “defamatory,” meaning they were negative and harmful to B’s reputation or caused monetary losses, and that A made this statement either knowing it was false, or while failing to exercise care in determining whether it was true or false. In some cases, B must also show and prove that she had incurred actual damages.

Therefore first, the statement must be “published,” i.e. made to a third party. Although it need not be publicized for the world to read in Time Magazine or hear on the six o’clock news, someone else must hear or read it. (If the third person reads the defamatory statement, the defamation is called “libel,” if she hears it, it’s called “slander.) Thus, A calling B a derogatory term or making a false statement of fact directly to B, is not defamation, because no third party heard it.

Next, the statement must be false. Even if harmful to a person’s reputation, a statement that is true is absolutely immune from a defamation claim by the First Amendment of the United States Constitution which protects free speech. Therefore, “truth” is a nearly unbeatable defense to a defamation claim.
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New Jersey law provides a “fresh start” or “clean slate” to people who made a mistake in the past, but turned their lives around and become a productive citizen by effectively clearing their records of arrests and convictions. These are called in New Jersey “expungements.”

Why Get an Expungment?
Expungements remove the obstacles which a criminal record can place on getting many jobs. An expungement allows someone to legally say an arrest or conviction never happened.

It is routine today for employers to do criminal background checks on job applicants – or even current employees. An expungement removes this as an obstacle to employment. (There are exceptions – for instance, the convictions must still be disclosed in applications for jobs with the judiciary or law enforcement, or to become a licensed attorney; the conviction may not be a bar, but it must be disclosed in these circumstances.) Arrests and convictions can keep an applicant from getting a job, or cause a current employee to be fired. Many professional licensing boards, such as for nursing, will reject applicants with certain criminal records. An arrest or conviction could cause an application to college or graduate school to be rejected. Many sports or community organizations reject volunteers with arrests or convictions. A criminal record may keep a person from adopting a child. A criminal record can also hurt the chances of joining the military. Finally, it removes the stigma of a criminal record from a good, productive citizen.

What New Jersey Convictions Can be Expunged, and When?
Most New Jersey crimes can be expunged.
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Totowa, NJ 07512
Phone: (973) 890-0004
Fax: (973) 256-3641

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