New Jersey law uses a three-part test to determine if a worker is an independent contractor and therefore ineligible to collect unemployment compensation benefits (NJ Rev. Stat. Sec. 43:21-19):
• The worker has been and will continue to be free from control or direction over the performance of the work, both under contract and in fact.
• The work is either outside the usual course of the employer's business, or the work is not performed at any of the employer's places of business.
• The worker is customarily engaged in an independently established trade, occupation, profession, or business.
This definition, although used in an unemployment setting, is generally helpful in giving employers an idea of the broader definition of independent contractor.