Misclassification in NJ Film and Media Productions Using “Per-Project” Contracts

Film and media work is built on a simple idea: the project ends. People bounce from gig to gig, often with long hours in between, and then a stretch of silence while the next call comes in.

That rhythm is real. It is also the reason contracts can feel normal. But a normal industry practice does not automatically align with the state’s legal definitions. 

In New Jersey, misclassification cases may have a clear starting point: a crew member gets a 1099 and a deal memo that says “independent contractor,” “loan-out,” or “per-project.” 

The production company treats payroll as if it is optional. Taxes are pushed onto the worker. Overtime disappears. Workers’ comp coverage gets blurry. A paycheck is late. Unemployment becomes harder to access when the job ends, even though the job ending was the whole point of the industry model.

Let’s break down how wrong labels could be applied in film and media work, why “per-project” doesn’t decide a worker's status, what the law looks at when deciding the status, and when it may be time to talk to an independent contractor misclassification lawyer in New Jersey.

Why “Per-Project” Film Crew Work Is Often Misclassified In New Jersey

A “per-project” contract usually sounds straightforward. It says you are being hired for a specific job, on a specific production, for a specific stretch of time. The paperwork may look polished: a flat fee, a kit rental line, a deal memo written to resemble a vendor agreement. On its face, it can read like a classic arrangement for a freelancer or contractor.

But the length of the engagement is not the same thing as independence.

Short-term employees exist everywhere. Seasonal employees. Temporary employees. Event staff. A job ending does not make the worker a contractor. It simply means that the job ended.

In film and media, “per-project” language often serves another purpose. It is used to push a worker toward being viewed as a gig worker instead of an employee, even when the day-to-day reality reflects traditional employment.

Think about what a typical set day looks like:

• Call times are assigned, and being late is not treated like “a vendor missed a deadline.” It is treated like a discipline issue.
• The production finalizes where the work is performed — often on set or on location.
• It sets standards for what tools can be used, what safety rules apply, and who supervises whom.
• The pace is controlled — meal breaks, turnaround expectations, resets, company moves.
• Only the production decides if you are brought back tomorrow.

That is why such contracts can become risky. It is a label that can hide a lot of employer control.

The New Jersey Legal Framework That Applies To Film Crew Misclassification

The ABC Test Is The Center Of The Story

New Jersey’s Department of Labor explains that New Jersey uses the ABC test to determine an employee’s status. Once it is shown that workers were paid, it is the employer’s burden to meet all three parts of the test. If the employer cannot prove all three, the worker should be an employee.

The ABC test is widely associated with unemployment law, but it shows up in wage-and-hour and wage payment disputes too. The New Jersey Supreme Court’s decision in Hargrove v. Sleepy’s answered that question directly and applied the ABC test to the Wage Payment Law and Wage and Hour Law.

That matters in film and media because misclassification usually shows up through wage problems. Flat day rates that ignore overtime. Missed meal penalties handled informally. Partial cash pay is another possible sign of a wrong label, since it can mask hours worked and allow employers to avoid taxes.

New Jersey Has Been Increasing Enforcement Tools

New Jersey has been open about taking the wrong labels seriously, and the numbers back that up. 

• In 2018, audits by the New Jersey Department of Labor uncovered more than 12,300 misclassified workers. Those audits revealed over $460 million in underreported wages and roughly $14 million in unpaid unemployment and temporary disability contributions. 
• Since 2018, NJDOL has recovered about $84 million through wage assessments and penalties, much of it paid back to workers. 
• In 2024 alone, recoveries totaled roughly $19 million. 
• In the first half of 2025, the agency has already assessed about $37 million in back wages affecting nearly 8,500 workers.

The state has also expanded its enforcement tools. NJDOL’s own guidance lays out misclassification risks in detail, and the agency now has broader authority to issue stop-work orders when early investigations uncover violations of wage, benefit, or tax laws.

A film set is a work site. If a set is operating in New Jersey and a classification problem is serious enough, that can raise real operational risk.

The State Is Still Refining Its Interpretation

In 2025, the New Jersey Department of Labor proposed new rules to clarify how the ABC test applies to independent contractors. 

You do not need to follow policy debates to see the trend of stricter enforcement. When regulators step in with proposed rules, it is usually because the same problems keep coming up — and the state is trying to set clearer boundaries.

How The ABC Test Collides With “Per-Project” Film Crew Work In New Jersey

The ABC test sounds simple, but it is deeply fact-driven — and the burden is always on the employer to prove all three prongs. In film and media, that may be harder than productions expect.

• Prong A focuses on control, and control does not disappear simply because a worker is off-site. Call times, deadlines, task assignments, approval chains, file delivery rules, and revision demands are still dictated by the production. A short plan does not reduce that control. In many cases, it intensifies it. “Per-project” may describe the timeline, but it does not erase employment-level direction, even for remote freelancers.
• Prong B asks if the work falls outside the usual business or place of business. For production companies, the business is making content. Crew members performing core production work are often doing the very service the company sells, frequently at locations that function as the company’s workplace — sets, stages, production offices, or controlled post environments.
• Prong C looks at whether the worker runs an independent business. Working on multiple “gigs” is not enough. True independence requires real business risk, public marketing, freedom to decline work, and economic independence — not a 1099 or a freelance label.

This is why “per-project” language often fails under New Jersey law. The label may fit the industry custom. The facts still control the labels.

How Misclassification Of NJ’s Film Crews May Look Like In Real Life

Misclassification usually does not happen because a producer sits down and says, “Let’s violate wage laws.” It often happens because a production model gets repeated, and nobody wants to be the person who slows it down.

Here are the patterns that may show up when “per-project” contracts are used as a shortcut.

The “Loan-Out” That Acts Like A Job Badge

Loan-out companies can be legitimate in some settings. But they can also be used as a costume: the worker is still treated like staff, but now paid through a personal entity.

If the worker is still controlled like an employee, still performing the core service of the production, and not actually leading a business, the entity paperwork may not solve the label problem under ABC test.

The Equipment Argument 

Some productions assume that if a worker brings gear, they must be a contractor.

Gear can matter. It is not nothing. But gear alone does not decide control, course of business, or independent status. A lot of employees use tools. A lot of employers may require workers to provide tools, especially in creative industries.

When a production controls the set, the schedule, the approvals, and the hierarchy, the presence of a kit does not change the relationship.

The “You’re Free To Say No” Defence

A producer might say: “We do not control them. They can refuse the gig.”

In practice, film work often operates through informal networks where refusing work can have consequences. And even if a worker can refuse the next project, the question is what control exists during the project.

What Workers Lose When They Are Misclassified

Misclassification is not only about taxes. It changes what protections apply. When a worker who operates like an employee is labeled a contractor, they can lose or struggle to access:

• Overtime protections and minimum wage protections that apply to employees under wage laws
• Unemployment eligibility when the project ends, even though the end of the project is predictable
• Workers’ compensation coverage clarity if the worker is injured
• Wage payment protections around timing and regular pay practices, which are built around employee wages
• The ability to file certain types of wage complaints through state enforcement channels that assume employee status

This is why “per-project” misclassification hits so hard. Film and media workers already deal with unstable work. Taking away basic protections makes that instability worse.

What Producers And Production Companies Risk In New Jersey

Misclassification is sometimes pitched internally as “industry standard.” But New Jersey does not grade on a curve.

New Jersey’s enforcement posture has included:

• Clear ABC test guidance from NJDOL, with the burden on the employer
• Dedicated misclassification resources and complaint pathways
• Continued regulatory attention to the rules, including proposed rules in 2025

Beyond enforcement, the business risks are straightforward:

• Back pay exposure for overtime and wage shortfalls
• Tax and benefit exposure tied to employee status
• Disruption risk if a work site is investigated at the wrong moment
• Civil litigation risk, including class or collective claims in the right fact pattern

The point is not that every production is doing something wrong. The point is that a “per-project contract” is not a shield, and it is one of the easiest shields for New Jersey to see through because the ABC test focuses on the reality of the work. 

What A Safer Classification Approach Can Look Like In Production Work

This is not legal advice for producers, but it helps to name what tends to reduce risk in the real world. In New Jersey, the safer approach usually starts with honesty about what the relationship is.

If the production is controlling the work like employment and the role is part of the core production service, treating the worker as an employee and paying through payroll is often the cleanest compliance path.

When the production truly wants a contractor relationship, it has to look like one in practice, not only on paper. 

If you work in New Jersey film or media and you are being paid under a “per-project” agreement, but the production controls your schedule, your work, and your role like employment, you may be misclassified. But you don’t have to navigate the legal battle alone.

Contact us today: we offer free consultation for New Jersey workers in need of legal advice.