Several more business and economy groups and freelancer advocates have come out against a controversial rule formally adopted by the Sherrill administration this week that makes if much more difficult to be a freelance worker in New Jersey.
The regulation, first proposed by Gov. Phil Murphy, which yielded 9,500 comments in opposition last year, changes the criteria of the ABC test that determines whether a person is a freelancer or an employee. It will still need some statutory changes by the Legislature.
The administration is targeting a 120-day phase-in period for the rule.
In response to the adoption of the rule, Jersey1st, the New Jersey Policy Institute, and Americans for Prosperity–New Jersey issued the following joint statement:
“Governor Sherrill’s decision to move forward with this sweeping worker classification rule is deeply concerning for the hundreds of thousands of independent contractors who rely on flexibility, autonomy, and entrepreneurship to earn a living.
“While the state claims these regulations simply ‘clarify’ existing law, the reality is that the ABC test already sets one of the strictest standards in the nation, presuming workers are employees unless all three prongs are met.
“By layering on additional regulatory interpretation, the state risks further blurring the line between independent work and traditional employment in a way that could force many freelancers, gig workers, and small businesses into arrangements they neither want nor need.
"At a time when more New Jerseyans are choosing independent work — whether as drivers, consultants, creatives, or tradespeople — this approach threatens to limit opportunity, reduce income potential, and eliminate flexible work options that many families depend on.
"We are particularly concerned that this rule will disproportionately impact small businesses and sole proprietors who lack the resources to navigate complex compliance requirements, potentially forcing them to scale back operations or relocate to more business-friendly states.
"Rather than expanding economic opportunity, these regulations risk undermining innovation and pushing independent workers out of the New Jersey workforce altogether.
"We urge state leaders to reconsider this approach and work collaboratively with stakeholders to protect both workers and the flexibility that defines today’s modern economy. New Jersey should be a place where independent contractors can thrive, not a state that regulates them out of existence.”
In an interview on Jersey Thing with Eric Scott on NJ101.5 on Wednesday, Freelancebusting.com found Kim Kavin, one of the foremost freelance advocates in the nation, said the rule could have a chilling effect on the gig economy in New Jersey.
"I was just having breakfast with one of the top labor lawyers in the country on this, and I said to him, 'What do you think?' Kavin said.
"And he said, 'Look, it's all very basic. If they write the language in a way that there's a chance that businesses will get fined for working with independent contractors, businesses are going to stop working with independent contractors. They don't want that risk.'
"And it appears on first reading from what these lawyers are telling me so far, that risk remains in what the Sherrill administration did. So the threat is very, very real," Kavin said.
Additionally, in a report on WPIX-11 on Wednesday, Andrea Gordillo, Chief of Staff at Freelancers Union said the rules, as written, don’t surgically target exploitative misclassification and instead make broad sweeps and threaten freelance work.
“I just want to say to freelancers across the state that we have their back, we’re fighting for them,” Gordillo said.
“The problem isn’t freelancing, it’s forced freelancing,” said Gordillo, “and we want to stamp out one, but not both.”
