The overwhelming opposition to the New Jersey Department of Labor and Workforce Development proposal to drastically reduce the number of independent contractors in the state has faced massive resistance from freelance workers, the business community and lawmakers from both sides of the aisle.
When it comes to the two gubernatorial candidates for governor about the proposal, the response ranges between serious concerns to outright opposition.
In recent interviews with New Jersey Business Magazine, which will be published for the October issue, Democratic candidate Mikie Sherrill and Republican candidate Jack Ciattarelli were asked specifically of their take on the much-maligned proposal that could cause great harm to both independent contractors and employers.
“Businesses are worried that they are going to go under because of this,” Sherrill said. “I've heard from truckers who are saying, ‘I'm afraid I'm going to lose my job.’
“That's not what we want to see under this proposal. I'm going to review this when I get into office and have both businesses and workers at the table as we make sure regulations can help grow business and keep people employed.”
“I'm a free market guy, and I think that our state economy is best served when there's balance,” Ciattarelli said. “What I mean by that is 1099, and W2, union and non-union jobs.
“I do not support (the proposal). It would be dead on arrival under Governor Ciattarelli. My medical publishing company would never have survived if I wasn't able to use independently contracted scientific writers to produce content for continuing medical education that it provided to physicians.
“That's just one space under the umbrella of independent contractors. ... I do not support the movement," Ciattarelli said.
Under New Jersey state law, businesses must use a three-prong “ABC test” to determine a gig worker versus an employee.
NJDOL has claimed that its rule proposal is merely to codify those regulations as part of efforts to reduce misclassification.
But NJBIA, other business groups, legislators and independent contractors en masse have shown that they instead transform the rules, so it is much more challenging, if not impossible, to be an independent contractor in the state.
In written comments submitted to the agency, 99% of those who provided feedback were either outright opposed or showed serious concerns about the rule.
Gov. Phil Murphy has not stated whether NJDOL will pull or keep the rule. But in a News 12 segment last month, he seemed to be taking a passive role in it.
“I know there’s a lot of passion on all sides of this—and I’ve heard it directly myself,” Murphy said on Power & Politics with Eric Landskroner. “But let’s let this play out—and God willing, it’ll land in a good place for workers and for our economy.”
“It is promising that both of our gubernatorial candidates understand the serious ramification of this rule if it goes through,” said NJBIA President and CEO Michele Siekerka. “In a perfect world, this rule is thrown out before either of them enters the Governor’s office.”
