Eugene E. Ertle, Jr. recently concluded a victorious, 13-year effort in New Jersey courts related to a challenge of his tax classification by the state’s Department of Labor. Mr. Ertle, who is the owner of JerseyShore Reporting LLC and is based in Manasquan, N.J., was kind enough to grant an interview to NCRA’s Government Relations Department on his experience.
JCR | What finally motivated you to take action as a firm owner/court reporter?
Eugene E. Ertle, Jr. (EEE) | My original reason for getting involved stems from an unfortunate health condition I got on a cruise ship 14 years ago, bacterial meningitis. I’m the lucky 12 percent who lived, but it’s been a struggle. So being sick, I filed for social security disability. As the business owner my accountant set up my LLC and classified me as a W-2 employee. This, for some reason, with the state of New Jersey, seemed to open Pandora’s box. The state wanted to check my status as the owner and being a W-2. This opened the door for a state audit not just on me, but now on all 1099’s who worked for me. This started in 2010 but they now wanted to go back to 2008 and check on the court reporters’ status. They saw this as a great opportunity for a large “money grab” in our industry. Hence I retained James Prusinowski, Esq. Jim has been with us the entire time.
JCR | How can NCRA better support its members when it comes to situations like this?
EEE | I think this could happen in any state. To maybe nip it in the bud, NCRA should prepare all [its members] for [this situation]. The best thing to do individually is to become their own LLC. Making them aware of what could happen I think would prepare them.
JCR | What motivated you to keep going over this 13-year effort?
EEE | My personality has always been to never give up. I think the reason I am still living is because of that. I should have died five times over these last 14 years so my will to live reflects on my mindset to keep fighting.
JCR | Is there something you wish the court reporting, professional captioning, and legal videography communities would learn from your experience?
EEE | I hope they all learn to never give up — no matter what it is, it is always worth the fight. Unfortunately, it came with a tremendous amount of stress and money, but I wouldn’t change a thing.
JCR | How does your case change the landscape for freelancers, firm owners, and those looking to join the industry in New Jersey?
EEE | This case not only changed court reporting, but it has also had a trickledown effect on other industries similar to ours, like limo drivers — any type of driver — the real estate industry, pretty much any job where independent contractors are required or hired.
JCR | Was there anything you wish you knew 13 years ago that you do now?
EEE | I wish I knew how much money it would have cost. Every year we thought we were close to winning and we did win often. The issue was the state of New Jersey’s Department of Labor has deep pockets so each and every time we got a favorable decision, the state would appeal. This process went on for 13 years. We had trials, appellate trials multiple times. Finally this year the state didn’t file an appeal.
JCR | When it comes to the issue of tax classification, how has this decision been helpful to you personally, and what do you hope it will do for the industry?
EEE | The matching taxes would have killed our industry, not just me. All payroll taxes would be just too much to match, especially in our business with mostly set costs like per page rates and attendances. And with contracts that you bid on with set pricing, [there would be] no way of staying in business with W-2 court reporters.
JCR | Are there any other industry-related issues you feel aren’t being addressed in New Jersey?
EEE | It would be nice to get paid in a reasonable amount of time. We as an industry should have a list of attorneys or insurance companies that are “bad pay.” Imagine sharing that list around the states; that would open the door to get CODs on these deadbeats. A list of rules from each state about the rules ordering transcripts: Who pays, who gets the freebie, when does everyone pay. Each court has certain distinguished rules when ordering. It would be great to have that list, especially with all the interstate Zoom depositions since COVID-19. I feel that our industry as a whole runs like a well-oiled machine across the country; there’s plenty of work for everyone.
In New Jersey judges can assist the court reporter with collection if asked, but unfortunately, they never do and deny that it actually is a rule. I’m a rule guy, my dad was an attorney and always told me to read up on the rules, especially when it comes to our industry. I also think that the power of a state has to be looked at. Goliath can’t always be right. There should be a limit to how many times you can appeal the same thing. My lawyer Jim probably could answer that a lot better than I.
JCR| How was it being on “the other side” of the courtroom as a party instead of a reporter?
EEE | Being on the “other side” was great; I loved every minute of it! Every judge who heard our case (and there were three of them) was in our corner. Ten of the court reporters who covered work for me also testified. They were all very nervous at first, but by day’s end they couldn’t get enough of it!
Eugene E. Ertle, Jr., is the vice president and owner of JerseyShore Reporting LLC. He can be contacted via email at gene@jerseyshorereporting.com.
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