States have recently made headlines in efforts to thwart misclassification of employees as independent contractors. New Jersey Gov. Phil Murphy established a task force on employee misclassification in an executive order signed last week. Separately, 12 attorneys general filed a friend of the court brief in a case before the National Labor Relations Board, arguing that intentional misclassification can violate the National Labor Relations Act.

In addition, the California Supreme Court on April 30 ruled in favor of using a tougher test on misclassification that could cast doubt on workers’ arrangements in that state. And it may already be affecting gig economy firms. Reuters reported human cloud, ride-sharing firm Lyft Inc. and courier service Postmates — an online delivery app that matches independent contractor couriers with consumers and businesses — are among the first companies to be sued under that decision.

Meanwhile, in the NLRB case, the board will decide whether to uphold the decision of an administrative law judge in the case of Velox Express Inc. vs. Jeannie Edge. An administrative law judge had previously found that intentional misclassification of workers as independent contractors did violate the act.

Jeannie Edge was a driver for Velox Express, an Indiana-based firm that operated a courier service collecting medical samples from doctors’ offices, clinics and hospitals and transporting them to a laboratory in Nashville, Tenn. Velox engaged Edge as an independent contractor. When her contract was terminated, she filed a charge with the NLRB alleging Velox violated the act, according to filings. The NLRB administrative law judge agreed, and ruled that by classifying drivers as independent contractors, it interfered in their protected activity in workplace organization.

The attorneys general argue intentional misclassification gives companies an unfair advantage and takes money from workers.

“We must protect workers’ rights to be properly classified to ensure they get the benefits and protections they deserve,” New Mexico Attorney General Hector Balderas said in a statement, “but we must also protect New Mexico small businesses following the rule of law so they are not unfairly positioned against those businesses that are not.”

However, business groups argue upholding the decision will lead to confusion, increased litigation and more.

“This type of ‘legal climate’ will chill the creation and continuation of independent contractor relationships in the country at a time when these types of gig economy relationships should be encouraged to expand and flourish,” the HR Policy Association said in its friend of the court brief. “Indeed, some of the most innovative, entrepreneurial, and productive advances in recent years in our nation’s economy have evolved from new and expanding independent relationships between individuals and employers.”

The 12 states involved are Connecticut, Illinois, Massachusetts, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Virginia and Washington.

And on May 3, the governor of New Jersey signed his executive order starting the misclassification task force.

“The exploitation of workers is not only unethical — it is illegal,” Murphy said in a statement. “In New Jersey, we promote fairness, fight against discrimination and work to end unfair labor practices.”

Responsibilities of the task force include:

1. Examining and evaluating existing misclassification enforcement by executive departments and agencies.
2. Developing best practices by departments and agencies to increase coordination of information and efficient enforcement.
3. Developing recommendations to foster compliance with the law, including by educating employers, workers and the public.
4. Conducting a review of existing law and applicable procedures.

The task force includes 12 members from state government agencies.