Lose your business license for misclassifying workers?

That could happen in New Jersey where new regulations authorize the Commissioner of the state’s Department of Labor and Workforce Development to suspend or revoke an employer’s business license for failing to report required state wage, benefits, and tax records (for employment taxes, unemployment taxes, and temporary disability contributions). The failure results when workers who are really employees are erroneously misclassified as independent contractors. Such suspension or revocation may not be immediate; it would follow an initial audit and then another audit 12 months later.