On March 3, 2026, a federal judge in the District of New Jersey transferred an employment lawsuit to North Carolina, holding that the case should proceed in the state where the corporate decisions were made, rather than where the remote employee performed their work.

Background

In Papa v. IAT Insurance Group, Inc., a New Jersey resident worked remotely from her home as a senior instructional designer for a North Carolina-based insurance company. The remote employee filed suit against the company in the District Court of New Jersey, alleging that she was subject to discrimination and retaliation by her employer. The employer moved to transfer the case to the Eastern District of North Carolina, arguing that although the employee worked remotely from New Jersey and was present in New Jersey during many of the alleged discriminatory actions, the key employment decisions underlying her claims were made at the company’s headquarters in North Carolina.

As we enter into 2026, a number of state, local, and federal employment law changes are taking effect which impact employer compliance and expand employee rights. These developments create new obligations that employers should be aware of as they review workplace postings, leave policies, hiring practices, scheduling procedures, and anti-discrimination safeguards for the year ahead.

New Jersey

  • Updated Family Leave Insurance Posting

On April 3rd, 2025, the New Jersey Department of Labor and Workforce Development proposed new rules, which are designed to clarify the application of the “ABC test.” The ABC test is a legal standard used to determine whether a worker is an independent contractor or an employee for purposes of various New Jersey laws, including the Unemployment Compensation Law, the Wage Payment Law, and the Earned Sick Leave Law.

On May 5th, 2025, the proposed rules were published, triggering a 60-day review and comment period. This proposal is significant for businesses and independent contractors as it seeks to codify the department’s very broad application of the statutory ABC test.

Prongs of the ABC Test

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