A controversial New Jersey Department of Labor rule proposal to codify the test for independent contractor classification in New Jersey would harm workers, public safety, businesses and the state’s economy, NJBIA said in written comments submitted to the department this week.
NJBIA Vice President of Government Affairs Elissa Frank also said the NJDOL proposal, which has already been formally opposed by nearly Trenton 20 lawmakers from both sides of the aisle, should be withdrawn from consideration because it mischaracterizes and conflicts with existing law.
“The proposed rule is legally flawed, economically unsound, procedurally deficient, and socially regressive,” Frank said. “It upends settled law, contradicts federal standards, and undermines flexible work opportunities in a misguided attempt to expand employment classifications.
“We urge the Department to withdraw this rulemaking and engage in a more transparent, balanced, and evidence-driven process that supports both worker protections and economic freedom.”
Under New Jersey state law, businesses must use a three-prong “ABC test” to determine a gig worker versus an employee.
In her comments, Frank detailed the following for each prong in the NJDOL proposal:
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