Saying her administration wants to review any potential regulations — including a highly
controversial independent contractor proposal that has drawn the ire of business groups
— Gov. Mikie Sherrill last week signed an executive order that will institute a 90-day
pause on the proposal and adoption of new rules.

Sherrill said EO7 is about ensuring the state is serving its residents.

“I am committed to putting New Jersey residents first and ensuring our state
government truly works for the people it serves,” she said. “This means breaking down
red tape, eliminating bureaucracy, and saving New Jerseyans’ time and money.

“Following today’s executive order, we will review proposed regulations in the pipeline
and deliver lasting, positive change for communities across the state.”

Under the executive order, no agency shall propose or adopt any rule for a period of 90
days, subject to exceptions. Any rules that have been filed with the Office of
Administrative Law but not published in the New Jersey Register shall be withdrawn.

State agencies that have pending proposed rules will notify the governor by Feb. 2 of
any proposals whose non-adoption will adversely impact public health or security or
obstruct essential operations, among other considerations. The governor can then
consider whether to lift the pause on those proposals before the end of the 90-day
pause.

The biggest for the business community is a proposal that greatly expands the definition
of a contract worker, something that employers — and, most notably, contracted
employees — do not want.

Business groups and politicians have spoken out against it.

Sherrill’s order was applauded by business groups.

NJBIA CEO Michele Siekerka said a new administration needs to take a new look at
what has been proposed.

“Obviously, the business community has been very concerned about pending
regulations left over from the Murphy administration which we feel will do great damage
to the economy — most notably the proposed Department of Labor’s independent
contractor rules, data privacy rules under the Attorney General’s office, and several
others,” she said.

“But beyond that, Gov. Sherrill’s pause on the proposed regs is simply good
governance. With this change in leadership, it’s important to take account of what is
pending and what is proposed to ensure it aligns with the Sherrill administration’s
priorities.

“As I often say, a good process yields a fair result.”

Tom Bracken, CEO of the State Chamber, is thrilled — for what this means now and going forward.

“By temporarily pausing the adoption of pending administrative rules and regulations for 90 days, this executive order gives the new administration the opportunity to ensure that regulatory actions reflect the state’s priorities, especially tackling high costs, strengthening our workforce, and fostering an environment where businesses can grow and create jobs,” he said.

“This pause establishes a transparent process for agencies to identify rules and regulations that are critical and should proceed. At a time when affordability and economic competitiveness are top concerns for families and employers across our state, this measured approach to regulatory review will help ensure that government works more efficiently, is accountable to the people of New Jersey and supports sustainable growth for years to come.”

Christina Renna, CEO of the Chamber of Commerce Southern New Jersey, agreed.
She said the pause is vital to the South Jersey region.

“South Jersey’s economy is driven by small and mid-sized businesses across industries
such as manufacturing, logistics, health care, agriculture and hospitality,” she said. “For
these employers, clear and predictable regulations are critical to making decisions
about hiring, investment, and expansion. This pause creates an opportunity to take a
closer look at whether proposed rules are workable in practice and supportive of
economic growth.

The review period also gives the new administration time to hear directly from
stakeholders, like CCSNJ, and better understand how regulations affect businesses on
the ground. That kind of engagement is essential to shaping policies that encourage job
creation, attract investment, and strengthen South Jersey’s business climate while
continuing to protect public health and safety.”