Bramnick slams proposed rule reclassifying independent contractors in New Jersey
Trenton, NJ — Senator Jon Bramnick is pushing back against a proposed New Jersey Department of Labor rule that would reclassify thousands of independent contractors as employees, warning the change would devastate small businesses, kill jobs, and drive professionals out of the state.
The Murphy administration’s proposed reinterpretation of the “ABC Test” would significantly narrow the criteria under which individuals can be classified as independent contractors. Critics like Bramnick say that would upend business models for industries ranging from financial services and trucking to gig economy platforms and freelance professionals.
“This rule change will drive small business owners out of New Jersey, plain and simple,” Bramnick said Monday, arguing the policy would burden companies with new payroll tax liabilities and force flexible work arrangements into rigid employment structures.
A recent study by FSI and Oxford Economics found that 65% of financial advisors surveyed would consider leaving the state if the rule takes effect. The report estimates such an exodus would cost New Jersey 4,670 jobs and $470 million in GDP.
Supporters of the rule argue it aims to curb worker misclassification and ensure fair labor protections. But Bramnick contends the proposal misfires by broadly recasting legitimate independent workers as employees, leading to fewer opportunities and higher costs for residents and businesses alike.
The rule remains under consideration by the Department of Labor as public and legislative feedback continues.
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Key Points
- Sen. Jon Bramnick opposes NJDOL rule change that would reclassify independent contractors as employees
- Critics say the change would harm small businesses, cut jobs, and drive professionals out of the state
- Study shows 65% of financial advisors may leave NJ, costing $470M in GDP