TRENTON, N.J. — New Jersey lawmakers are once again California dreaming as they propose a new law to mimick one in Califnornia.
Three Republican lawmakers representing New Jersey’s 9th Legislative District have formally urged the state Department of Labor to abandon a proposed rule that would redefine how independent contractors are classified.
In a letter sent last week to Labor Commissioner Robert Asaro-Angelo, Senator Carmen Amato Jr., Assemblyman Brian Rumpf, and Assemblyman Greg Myhre voiced concern over the proposed rule N.J.A.C. 12:11, which would introduce an “ABC” test to determine whether a worker is an employee or an independent contractor.
“This rule proposal is a critical step in providing clear, reliable guidance to employers to help them comply with the law and prevent the illegal misclassification of employees,” Labor Commissioner Robert Asaro-Angelo stated previously.
The ABC test involves:
A. The worker is free from control or direction by the business, such as hours or pay rate
B. The worker performs their tasks outside the usual place of business for the enterprise
C. The worker is in an “independently established trade, occupation, profession or business”
The legislators said their office had received more than 50 letters from constituents warning the rule could “threaten the livelihoods of hundreds of thousands of people across the state.”
They also cited the example of California’s AB 5 law, which drew criticism after large numbers of freelancers and gig workers were affected, leading to multiple exemptions for various industries.
“In view of the serious concerns raised… we know that, as Commissioner, you would want to be informed of this productive input for thoughtful and thorough consideration by you and your staff,” the lawmakers wrote.
The proposed changes are currently under consideration by the New Jersey Department of Labor and Workforce Development.