On May 11, the Senate Labor Committee heard testimony on the New Jersey Department of Labor and Workforce Development’s (NJDOL) recently adopted regulations codifying the department’s interpretation of the “ABC test” used to determine independent contractor status. The regulations, formally adopted on May 5, establish additional guidance and factors for determining whether workers are classified as employees or independent contractors under New Jersey law.

CCSNJ joined numerous business organizations from across the state in submitting testimony expressing concerns with the adopted rule and reiterating opposition previously submitted during the public comment period. The business community has consistently warned that the regulations could create uncertainty for employers, reduce flexibility for independent contractors and freelancers, and negatively impact sectors that rely heavily on contract-based work arrangements.

During the hearing, legislators heard testimony from both business and labor stakeholders on the potential economic and workforce impacts of the regulations. CCSNJ continues to advocate for a balanced approach that protects workers while also preserving the flexibility and entrepreneurial opportunities that many independent contractors and businesses rely upon throughout New Jersey and particularly in South Jersey’s regional economy.

The regulations are expected to take effect following a 120-day implementation period, during which CCSNJ and the broader business community will continue engaging with the Legislature and administration to seek additional clarity and improvements to the rule.

To read the CCSNJ's written testimony, click here