New Jersey’s new rules governing how businesses and nonprofits classify workers as employees or independent contractors could create unintended problems for artists and arts organizations, according to ArtPride New Jersey.
In an op-ed published Tuesday by the business news site BINJE, ArtPride President and CEO Adam Perle urged Gov. Mikie Sherrill to delay implementation of the regulations, scheduled to take effect Oct. 1, until at least July 1, 2027.
NJBIA, which has staunchly opposed the rule, is also leading a campaign seeking the postponement of the implementation date and has created an online form that freelance workers, businesses and consumers can use to ask state policymakers to pause the rule.
ArtPride represents more than 400 arts and cultural organizations across New Jersey, including large institutions and smaller community-based nonprofits, according to Perle.
The Department of Labor regulations establish a more restrictive version of the state’s “ABC test” for determining whether a worker is an employee or an independent contractor. Under the test, a worker is presumed to be an employee unless the hiring entity can satisfy all three requirements for independent contractor status.
Perle said the arts industry presents challenges for applying the test because artists frequently work on short-term projects for multiple organizations.
He cited examples including a touring performer booked for a single night at a performing arts center, a teaching artist hired for a six-week class, a curator brought in for a specific exhibition, and a theater designer contracted for one production.
“New Jersey can enforce its laws against genuine misclassification while still allowing a musician to perform a one-night engagement, a teaching artist to lead a six-week class, and an independent artist to build a career across many organizations,” Perle wrote.
If the rule takes effect on Oct. 1, the consequences for artists could be significant.
“Small and mid-sized organizations operate with limited budgets and small staffs,” Perle wrote. “Faced with uncertainty about classification, audits, and potential penalties, some organizations may decide that they cannot risk offering a class, hosting a residency, or presenting a visiting artist. The result would be fewer paid opportunities for artists and fewer programs for the communities these organizations serve.”
To read the entire op-ed in BINJE, go here.
