Three Republican lawmakers are voicing sharp opposition to a proposed rule change by the Murphy administration that could reclassify thousands of independent contractors as employees in New Jersey, a move critics warn could upend freelance work and drive up costs for services across the state.
Senator Declan O’Scanlon, Assemblyman Gerry Scharfenberger, and Assemblywoman Vicky Flynn issued a joint rebuke of the Department of Labor’s proposal, which aims to reinterpret the “ABC test” used to define whether a worker qualifies as an independent contractor or must be considered an employee. The rule change could affect industries ranging from food delivery and rideshare to insurance, youth sports officiating, and freelance media work.
Opponents say that treating these workers as employees would reduce flexibility, eliminate job opportunities, and raise operating costs for businesses, potentially making services like Uber, DoorDash, or local sports programs more expensive for consumers. Lawmakers also criticized the administration for introducing the rule through regulatory changes rather than legislation.
A similar measure failed in the state legislature in 2019 after widespread backlash. At that time, opposition from independent workers and business groups led to the proposal being shelved. The new rule, now under public comment review, has sparked renewed concern as the Murphy administration approaches the end of its term.
Scharfenberger called the proposal “disastrous,” warning it could cost people their livelihoods. Flynn said the rule would further burden small businesses still recovering from pandemic losses, while O’Scanlon criticized the administration for reviving a defeated policy without legislative approval.
A comparable law passed in California in 2019 was later rolled back due to pushback from gig workers and service providers who said it hurt their ability to work and earn income.