Ocean County leaders raised strong concerns this week regarding the New Jersey Department of Labor and Workforce Development’s (NJDOL) proposed changes to the rules governing independent contractors and gig workers.
The new rule, which seeks to codify the “ABC test” for worker classification, has sparked significant debate among local businesses, contractors, and gig workers.
“The State’s one-size-fits-all rule may hurt the very people it claims to protect; the independent workers, small businesses, and local economies that depend on flexibility and Ocean County’s local contractors, tradespeople, and entrepreneurs that rely on flexible work arrangements,” Ocean County Commissioner Jennifier Bacchione said on Monday. “The State should not be penalizing them for working independently.”
The proposed rule would clarify and tighten the criteria for determining whether a worker is an employee or an independent contractor, potentially requiring many gig workers and contractors to be reclassified as employees. This change could trigger new payroll tax obligations, benefits requirements, and unemployment contributions for businesses, while also granting workers access to standard employee protections such as minimum wage, overtime, and unemployment insurance.
“Not every contractor is being exploited; there are many who choose independence because it fits their lives and Trenton shouldn’t take that choice away,” emphasized Bacchione, who also serves as liaison to the Ocean County Division of Business Development and Tourism. “The State cannot claim to support economic growth while creating new barriers for the very people driving our local economy.”
Local business associations and gig workers have expressed concerns that the rule could reduce workforce flexibility, increase costs, and disrupt thousands of jobs and partnerships overnight.
“This rule doesn’t just change paperwork; it changes livelihoods,” said Deputy Director of the Ocean County Board of Commissioners Frank Sadeghi. “Ocean County stands for a fair economy, one that values hard work, rewards entrepreneurship, and lets people earn a living on their own terms.”
In addition, some business models such as ridesharing, delivery, and on-demand services may see higher costs, reduced workforce flexibility, or changes in how they engage with workers. For workers who prefer independent-contractor status, there are concerns the proposed rule may limit opportunities or force unwanted employment status.
“The State shouldn’t be telling hardworking New Jerseyans how to earn their living,” said Ocean County Commissioner Robert S. Arace. “For parents juggling schedules, retirees supplementing income, and young people building experience, flexible work is a necessity, not a loophole. Trenton must not punish independence under the guise of protection.”
NJBIA strongly opposes the proposed NJDOL worker classification rule, which has also drawn widespread bipartisan criticism from legislators and the public. Over 9,500 written comments were submitted to NJDOL during the public comment period on the proposal, with more than 99% of those comments in opposition. The rule has not yet been formally adopted.
Some legislators have recently introduced bills to carve exceptions for certain licensed or regulated professions, such as real estate, finance, insurance, and independent truckers.
On Nov. 10, Senator Declan O’Scanlon (R-13) introduced a concurrent resolution (SCR-138) to nullify the proposed NJDOL rules entirely as inconsistent with legislative intent. The Senate concurrent resolution, if approved by both houses of the Legislature, would not require the governor’s signature to be enacted.
