Senator Jon Bramnick (R-21) on Monday announced his opposition to the Department of Labor’s proposed rule change affecting independent contractors, citing devastating economic consequences on both workers and families.
NJBIA has been working closely with businesses, independent contractors, and legislators to stop the new draft worker classification rules that would drastically reduce the number of independent contractors in the state. Bramnick, a member of the Senate Commerce Committee, is the 22nd New Jersey legislator to publicly oppose the controversial rule.
“This rule change will drive small businesses owners out of New Jersey, plain and simple,” Bramnick said in a statement issued by the Senate Republican Office. “By misclassifying thousands of independent contractors as employees, the Labor Department would strip away the flexibility and freedom that make these professions possible. The result will be lost jobs, higher costs, and fewer opportunities for residents.”
The proposed rule seeks to reinterpret the long-standing “ABC Test,” threatening to reclassify thousands of independent contractors — including financial advisers, rideshare drivers, truckers, freelancers, and others — as employees. This would trigger increased payroll tax obligations for companies and upheave independent business models.
Bramnick cited an FSI-Oxford Economics study finding 65% of financial advisers would consider relocating out of New Jersey if the DOL rule changes were to go into effect. This alone would lead to a loss of an estimated loss of 4,670 workers and $470 million in GDP.
Legislative opposition to the rule has come from both Democrats and Republicans. Last week, the Senate and Assembly members who represent District 13 in Monmouth County announced that if the NJDOL fails to respond to the public outcry and adopts the proposed change, they will introduce a concurrent resolution nullifying the rule because it is inconsistent with legislative intent.
A concurrent resolution passed by both the Assembly and Senate does not require approval from the governor to take effect.
At a public hearing in July, an overwhelming majority of workers and businesses testified against the proposed rule. The official public comment period on the rule has ended and it is now up to NJDOL to either adopt the rules as proposed, make changes, or withdraw the rule completely.
