Zjn, LLC v. New Jersey Department of Labor, Etc.

CourtNew Jersey Superior Court Appellate Division
DecidedOctober 3, 2025
DocketA-3983-23
StatusUnpublished

This text of Zjn, LLC v. New Jersey Department of Labor, Etc. (Zjn, LLC v. New Jersey Department of Labor, Etc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-3983-23

ZJN, LLC,

Petitioner-Appellant,

v.

NEW JERSEY DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT,

Respondent-Respondent. ______________________________

Submitted September 16, 2025 – Decided October 3, 2025

Before Judges Rose and DeAlmeida.

On appeal from the New Jersey Department of Labor and Workforce Development, Docket No. DOL 22-022.

Calzaretto & Bernstein LLC, attorneys for appellant (John Calzaretto, on the brief).

Matthew J. Platkin, Attorney General, attorney for respondent (Sookie Bae, Assistant Attorney General, of counsel; Marc Peralta, Yael Fisher, and Eve Weissman, Deputy Attorneys General, on the brief).

PER CURIAM ZJN, LLC, appeals from a July 12, 2024 final administration decision by

the Commissioner of the Department of Labor and Workforce Development

finding ZJN liable for unpaid contributions to the unemployment compensation

and disability benefits fund (UCDB fund) under the Unemployment

Compensation Law (UCL), N.J.S.A. 43:21-1 to -71. Because we conclude ZJN

has not demonstrated the Department's decision was arbitrary, capricious, or

unreasonable, we affirm.

I.

We summarize the record before the Commissioner. ZJN is a New Jersey

limited liability company, operated by its sole member, Stewart Rosenzweig,

from his home office in Sewell. ZJN does business as Time Productions,

providing disc jockey (DJ) services for weddings, proms and other events.

The Department audited ZJN for unpaid contributions to the UCDB fund

for the period between January 1, 2015 and December 31, 2019, after a previous

audit revealed ZJN was an unregistered employer. The Department's auditor,

Ishan Shah, reviewed ZJN's records and sent standard form questionnaires to

those individuals who worked with ZJN during the audit period. Only six

workers returned the questionnaires; none of the DJs provided documents

establishing they had businesses or clients independent from ZJN.

A-3983-23 2 Based on the information received, the Department concluded the DJs

were ZJN's employees pursuant to the so-called "ABC test" for evaluating

whether workers are employees or independent contractors. N.J.S.A. 43:21-

19(i)(6)(A) to (C). The Department assessed ZJN $21,367.13 1 in unpaid

contributions to the UCDB. See N.J.S.A. 43:21-7(c). ZJN challenged the

Department's decision and the matter was transmitted to the Office of

Administrative Law as a contested case.

The Administrative Law Judge (ALJ) conducted a two-day hearing during

which the Department presented the testimony of Shah and moved into evidence

his audit reports and related documents. On its behalf, ZJN called Rosenzweig

and two DJs, Keenan Clemmons and Thomas Geist, but did not present

documentary evidence.

Shah testified he performed the audit, reviewed ZJN's documents, and

applied the ABC test to determine whether the workers were employees or

independent contractors. Shah explained employers are required to issue Forms

1099 to workers who made more than $600 in a year.

1 Consistent with the statutory interest accrual rate, the record provided on appeal indicates the amount is $45,645.29. See N.J.S.A. 43:21-7(c); N.J.S.A. 43:21-14. A-3983-23 3 Shah concluded ZJN failed to prove the DJs met the ABC test because:

"the DJs and entertainers are not free from the employer's direction and control";

"[t]he services are performed at temporary work sites with [sic] belong to the

employer's clients which can be considered an extension of the employer's

workplace"; and the DJs "do not operate independently established businesses."

Clemmons testified he worked full-time as a pit manager at a Pennsylvania

casino and operated a sole proprietorship as a DJ entertainer under the trade

name "DJ Keys." He stated he maintained his entertainment business separately

and booked gigs through various agencies, including ZJN. Clemmons testified

he: negotiated his own rates with ZJN; was sometimes paid directly by the

clients; was not paid as an employee; was free to accept or decline events from

ZJN; and was not supervised by ZJN. Should ZJN cease its operations,

Clemmons stated he would continue to operate as a DJ.

Geist testified he was employed as a full-time, licensed home inspector

and operated a DJ company, Premiere Entertainment Group. Geist stated he

knew Rosenzweig for around twenty-five years, Rosenzweig periodically

offered him DJ gigs, but Geist also worked with other agencies. Geist further

testified he: had his own equipment and paid for the cost of any repairs;

controlled his own performances as a DJ; was not supervised or trained by ZJN;

A-3983-23 4 was free to accept or reject a gig from ZJN; communicated directly with the

clients regarding his performances; and was not financially dependent on ZJN.

Lastly, Rosenzweig testified ZJN acted as a "booking agency" for DJ

entertainers. Rosenzweig explained he negotiated the price with ZJN's clients,

performed as a DJ or contacted one of ZJN's DJs, who could accept or reject the

gig, received payment from the client, and transmitted payment to the DJs for

their services.

Rosenzweig further testified he understood the DJs were independent

contractors and "exempt from being considered employees." According to

Rosenzweig, he "ha[d] nothing to do whatsoever with [the DJ's] performance on

an event date"; ZJN did not provide training, supervision, instructions on how

to perform, music or other equipment to the DJs; and the DJs were free to

"operate independently." Accordingly, ZJN issued Forms 1099 to the DJ

entertainers.

According to the documentary evidence introduced at the hearing, ZJN's

website advertised its DJs, featuring their names, photos and descriptions. ZJN's

business registration application and Schedule C to Form 1040 described the

company as "disc jockey services."

A-3983-23 5 Following the hearing, the parties submitted closing briefs. In its post-

hearing brief, ZJN cited our decision in Koza v. New Jersey Department of

Labor, 307 N.J. Super. 439, 442 (App. Div. 1998), and argued the ABC test was

inapplicable here because ZJN shared "a joint venture relationship with [the] DJ

[e]ntertainers," who did not "provide[] services for remuneration." In the

alternative, ZJN asserted it had established all three prongs of the ABC test and

therefore its DJs should have been classified as independent contractors, not

employees.

In her initial decision that followed, the ALJ did not expressly reject ZJN's

joint venture argument, but applied the ABC test and concluded all ZJN's DJs,

except Clemmons and Geist, were ZJN's employees. In particular, the ALJ

found ZJN established prongs A and B of the ABC test for all DJs, but only

established prong C for Clemmons and Geist. The ALJ therefore concluded ZJN

was liable for unreported wages for all other "1099 recipients and casual

laborers,"2 except Clemmons and Geist, during the audit period.

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