TO:	Associate
FROM:	Rachel Dominguez-Park, Partner
DATE:	February 4, 2026
RE:	NovaStream Logistics — ABC Test Research
MATTER NO:	2026-0187
DUE:	February 16, 2026

Assignment Overview

Our new client, NovaStream Logistics, operates an app-based delivery platform using approximately 180 drivers whom it classifies as independent contractors. Before we draft or revise any agreements for this client, I need a focused analysis of Prong B of New Jersey's ABC Test, which presents the most significant classification issue for this client.

Research Questions

Please prepare a short discussion memo addressing the following three questions. Each question should be answered in a separate, clearly labeled section.

Question 1: Statutory Framework (Statutory Interpretation)

What is the text of Prong B of the ABC Test (N.J.S.A. 43:21-19(i)(6)(B)), and how have New Jersey courts interpreted the phrase "usual course of the business of the employer"?

Question 2: Application to Core Business Workers (Case Synthesis)

How have New Jersey courts applied Prong B when the worker performs the company's primary business function? Identify and briefly analyze the most relevant NJ appellate decisions.

Question 3: Factual Assessment (Fact Application)

Based on the facts in Ms. Sharma's emails (A-2), which aspects of NovaStream's operations strengthen a Prong B defense, and which aspects weaken it? Identify at least two factors on each side and explain how courts applying Prong B would likely view each factor.

Deliverable Specifications

• Length: Approximately 2 pages total, double-spaced (discussion sections only — no formal memo header, statement of facts, or conclusion required)
• Format: Three clearly labeled sections, one per question
• Citations: Proper attribution with pinpoint citations to primary NJ authority (full Bluebook format not required)
• Due date: February 16, 2026 (as part of Milestone 1)

Tool Assignment

For each question, you must use at least two different methods, one of which must be a non-AI approach. For each question, track:

• The tool(s) you used
• Time spent
• Key authorities identified
• Any errors, hallucinations, or gaps you identified
• Verification steps you took

This tracking will form the basis of your Milestone 1: Tool Selection Analysis, where you will evaluate which tools were most effective for which types of research questions and why.

Research Guidance

I'm aware of Hargrove v. Sleepy's, LLC, 220 N.J. 289 (2015), which is the seminal NJ Supreme Court case on the ABC Test. Your research should identify how subsequent decisions have applied this framework.

Be cautious about citing cases from other jurisdictions. California's AB5 and Dynamex decision, while influential nationally, are not controlling in New Jersey. Similarly, federal cases applying the "economic realities" test under the FLSA may be distinguishable.

— RDP