M E M O R A N D U M

TO:                       Members of the Assembly Appropriations Committee

FROM:                 Hilary Chebra, Director, Government Affairs, CCSNJ

RE:                        A1511

DATE:                   September 17, 2026

The CCSNJ has long expressed concerns regarding New Jersey’s approach to determining independent contractor status and, most recently, the Department of Labor and Workforce Development’s new regulations governing application of the ABC test. Those regulations, N.J.A.C. 12:11, are currently scheduled to become operative on October 1, 2026. While the Department has stated that the regulations are intended to clarify the existing statutory ABC test and incorporate relevant court decisions, the Legislature’s consideration of A1511 underscores why the CCSNJ believes their implementation should be delayed.

A1511 recognizes that certain legitimate business relationships do not fit neatly within New Jersey’s existing worker-classification framework. By providing greater certainty for insurance producers, securities professionals, certain transportation professionals and others who have historically operated as independent contractors, the bill acknowledges that application of the ABC test can create uncertainty for longstanding and legitimate independent contractor relationships.

However, the CCSNJ believes the continued need to consider statutory exemptions raises a broader and more fundamental question about the ABC test itself. Rather than continuing to address concerns through occupation-by-occupation exemptions, policymakers should evaluate whether the underlying test appropriately reflects the realities of today’s workforce and economy.

Independent contracting is utilized across a wide range of industries and professions, and many individuals affirmatively choose this type of work because it provides flexibility, autonomy and the opportunity to operate their own businesses. The nature of work has also evolved considerably, making it increasingly important that New Jersey’s worker-classification laws provide clear, predictable standards that distinguish genuine independent businesses from situations involving employee misclassification.

The CCSNJ strongly supports efforts to prevent intentional worker misclassification. Businesses that deliberately misclassify employees disadvantage workers as well as responsible employers that follow the law. However, protecting workers from misclassification should be carefully distinguished from preserving legitimate independent contractor relationships. These goals are not mutually exclusive.

A1511 provides an important example of the challenges created by the current framework. If lawmakers must repeatedly intervene to ensure that legitimate and historically recognized independent contractor relationships are not unintentionally disrupted, it is reasonable to examine whether the underlying ABC test continues to strike the appropriate balance.

For that reason, the CCSNJ believes the State should undertake a comprehensive evaluation of the ABC test itself, including whether its current structure provides sufficient clarity and flexibility for the modern economy while continuing to protect workers from intentional misclassification. That review should occur before new regulations governing the test become operative.

A1511 should be viewed not simply as a solution for a particular group of professions, but as an opportunity to examine whether New Jersey’s broader approach to worker classification is working as intended. Taking the time to evaluate the ABC test now can provide greater certainty for businesses, preserve legitimate independent work arrangements and ensure that New Jersey’s worker-classification policies reflect the realities of the modern workforce.

Thank you for the opportunity to provide the Chamber’s comments.