Senator Declan O’Scanlon, Assemblyman Gerry Scharfenberger, and Assemblywoman Vicky Flynn (R-13) announced today they will introduce legislation that would declare a Department of Labor proposal drastically reducing the number of independent contractors in the state is inconsistent with legislative intent.
The legislators will post the bill upon return of the lawmakers from their summer break if NJDOL doesn’t respond to the massive public outcry opposing the change and “rescind or satisfactorily modify their proposed rule changes.”
To date, 21 lawmakers from both sides of the aisle have already submitted comments urging the Department to pull the rule proposal.
The concurrent resolution, if passed by the Legislature, would not require the governor’s signature.
“These proposed rules by the DOL directly contradict the Legislature’s intent and would wreak havoc on independent contractors who rely on flexibility and autonomy to make a living,” O’Scanlon said in a statement.
“That’s why I’ll be introducing legislation to declare these rules inconsistent with legislative intent and stop them before they do serious harm. It is imperative that both chambers act swiftly and decisively to reject this rule before it takes effect. The livelihoods of countless New Jerseyans are on the line.”
NJBIA has worked extremely closely with businesses and independent contractor advocates since NJDOL proposed the rule in May.
NJBIA President and CEO Michele Siekerka immediately issued a strong statement of support for the resolution.
“NJBIA thanks our responsive lawmakers for announcing this much-needed resolution, which we will fully support when it is formally introduced,” Siekerka said.
“NJBIA has been working closely with businesses, as well as independent contractor advocates, to ensure that this misguided proposal does not go forward. We thank the greater business community for allowing their impassioned voices to be heard through constant communications to their legislators.
“We look forward to seeing continuing bipartisan support for this effort from-sense legislators who had already joined us in urging that NJDOL pull this damaging proposal in the first place. We extended our gratitude to those lawmakers from both sides of the aisle for their leadership, their understanding of the consequences of the proposal, and for hearing the concerns of New Jersey’s business community and independent workers.”
Under New Jersey state law, businesses must use an “ABC test” to determine a gig worker versus an employee.
That means independent contractors are required to:
- Be free from control and direction by the business
- Do work outside of a firm’s “usual course of business” and “places of business."
- Be engaged in an independent and established “trade, occupation, profession or business.”
The Department is following a similar proposal that was passed into law in California in 2019. Since then, the law has been rolled back through numerous exemptions and lawsuits that continue today. It also has resulted in fewer employees and gig workers in the Golden State.
“As we have stated since May, NJDOL’s proposal is not merely a codification of current ABC rules – it’s a complete overhaul of the regulations that will drastically reduce the flexibility and economy of independent contractors and greatly add to the costs and efficiencies of New Jersey businesses,” Siekerka said.
Assemblyman Scharfenberger said the NJDOL's proposed changes would be disastrous for anyone who depends on the flexibility that independent contracting provides. “From small business owners to part-time freelancers, this is a lifeline for thousands of people across New Jersey," Scharfenberger said. "Stripping away this independence would burden both gig workers as well as businesses who prefer to work with independent contractors in a more copacetic arrangement. This is government fixing what isn’t broken—and we will not let it happen."
Assemblywoman Flynn noted that the rules would especially hurt parents, caregivers who need to be able to set their own schedule. “These rules are a direct attack on worker freedom and the ability of New Jerseyans to control their own livelihoods,” Assemblywoman Flynn said. “For many independent contractors—especially parents, caregivers, and those juggling multiple jobs—this flexibility isn’t a luxury, it’s a lifeline."
