On Thursday, December 5 the Senate Labor Committee considered S-4204, which makes changes to the ABC test used to determine whether a worker should be classified as an employee or an independent contractor.

The initial version of the Senate bill introduced last month would have banned most independent contractor relationships. After hearing testimony in the Assembly Labor Committee, however, the Assembly bill was amended and the Senate President agreed to make changes to improve the legislation.

NJBIA testified before the Senate Labor Committee on Thursday that the ABC test as drafted in the bill is still too restrictive and many independent contractors would still have a challenge meeting the criteria.

The Senate President has left open the possibility for additional amendments. The Senate bill is now on 2nd reading and the Assembly bill has been 2nd referenced to the Assembly Appropriations Committee.

Employment & Labor Law News

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