Another set of legislators have asked the state Department of Labor and Workforce Development to pause a new rule that would classify many more independent contractors as regular employees.
In a letter to NJDOLWD Commissioner Robert Asaro-Angelo, Senator Vin Gopal, Assemblywoman Margie Donlon and Assemblywoman Luanne Peterpaul (D-11) said the proposed rule redefining independent contractors would “create serious disruption for the state’s businesses and employees.”
“While the proposed revisions are clearly well-intentioned, we have heard from numerous constituents across varied industries concerned about how this pending rule would impact their careers and businesses,” the legislators wrote.
“In light of these concerns, we hope the proposed rulemaking can be paused to address what we believe would be unintended consequences if the rule were finalized.”
NJBIA and the business community, as well as many independent contractors have vehemently opposed NJDOLWD’s proposal, which would change the conditions of the “ABC test” to determine a gig worker versus an employee.
The proposed regulations state also that paying someone by IRS Form 1099 versus an IRS Form W2 does not transform that individual into an independent contractor, Frank said.
“These regulations do not merely ‘codify’ existing law as the Department claims—they significantly alter it,” said NJBIA Vice President of Government Affairs Elissa Frank.
“In doing so, they restrict the very framework that has allowed thousands of New Jerseyans to earn a living on their own terms.”
With their formal request to pause the rulemaking process, the District 11 legislators join a growing list of Democrats who are raising concerns about the proposal.
Last month, Senators Gordon Johnson, Andrew Zwicker and Joseph Lagana wrote NJDOL saying they were concerned the rule “departs from the existing statute and case law controlling worker classification.”
In a public hearing earlier this month, Senator Joe Cryan also issued testimony stating the proposal would present new challenges to independent contractors and businesses.
Last week, during a Senate Committee on Health, Education, Labor, and Pensions (HELP) focused on a package of bills intended to help independent contractors, Senator Andy Kim said he wants “to make sure people have flexibility” and are “able to live the lives that that they want to live.”
NJDOLWD has extended its comment period on the rule proposal until Aug. 6.
The agency’s proposal mirrors a 2019 bill that did not make it through the state Legislature.
