As the New Jersey Department of Labor, under Gov. Phil Murphy, continues to not act on its rule proposal that would drastically reduce the number independent contractors in the state, despite more than 99% of opposing comments to it, there were two new developments this week to show even more reasons why the effort should be abandoned.
A new analysis from the Garden State Initiative showed how the rule would effectively threaten the livelihoods of thousands of freelancers, caregivers, and small business owners across the state.
The report, Independent Contractor Rules Threaten New Jersey’s Small Businesses and Jobs: Lessons from California’s Failed Approach, said the rule would disproportionately affect “women and men with young children who rely on flexible hours,” retirees supplementing their income, and “immigrants and minorities, many who use gig work as a first step into the American workforce.”
The rule would also harm “independent financial professionals” who rely on client trust and autonomy, as well as workers across diverse sectors—“writers, clergy, personal trainers, pharmacists, and more.”
Additionally, Fight for Freelancers Co-founder Kim Kavin conducted an interview for her “Freelance Busting” Substack report with gubernatorial candidate Jack Ciattarelli, who stated the rule, if adopted, would not stand under this governorship.
“I’ve seen letters from Democrats and Republicans in the Legislature submitted as part of the public comment process. I would certainly support a legislative effort to override the rule if it’s adopted,” Ciattarelli told Kavin. “But to be honest, I’m not sure there are enough members of the current majority party who would be willing to cast the right vote.
“But as someone who’s been endorsed by many Democrats to be the next governor, I’m all for a bipartisan effort to override the rule, and I would use my position as governor-elect—which I will be on November 4th—to make it clear this rule will not stand, and if the Legislature fails to act, I will.”
Ciattarelli suggested a similar rule process to undo the NJDOL regulation under Murphy should it be finalized.
He added that most rule adoptions are not necessarily based on “simply a mathematical issue” of whether commenters approve or disapprove, but “when you get to that many comments and 99% of them are saying the same thing, you have to learn from that and seriously question what you’re trying to do.”
To see Kavin’s full report, click here.
