A closeup of New Jersey's State House dome and top of State House

Nj lawmakers move to block phil murphy labor rule that could upend contract workers across state — A closeup of New Jersey's State House dome and top of State House

TRENTON, NJ — A trio of Republican lawmakers from New Jersey’s 13th Legislative District announced plans to introduce legislation aimed at stopping new Department of Labor rules that could reclassify thousands of gig workers and independent contractors across the state.

Senator Declan O’Scanlon, Assemblyman Gerry Scharfenberger, and Assemblywoman Vicky Flynn said Monday they will submit a concurrent resolution declaring the Department of Labor and Workforce Development’s proposed changes to the employment classification test “inconsistent with legislative intent” if the department does not rescind or modify the rules.

The rule change involves a reinterpretation of the long-standing “ABC test,” which determines whether a worker is classified as an independent contractor or employee. Critics argue the revisions could disqualify many gig workers—including drivers, creatives, consultants, and other freelancers—from maintaining their independent status. That shift would impact how they are taxed, how businesses engage with them, and their control over their own schedules.

O’Scanlon, Scharfenberger, and Flynn said the proposal would severely limit worker freedom and increase costs for businesses that rely on flexible labor. The lawmakers also warned the regulation could damage the state’s economy and affect thousands of residents who rely on gig work to earn a living.

Both Republican and Democratic legislators have voiced formal opposition to the rule, urging the New Jersey Department of Labor to pull back from its proposed action.

Under Article V, Section IV, paragraph 6 of the New Jersey Constitution, the Legislature has the authority to determine whether any agency’s rule aligns with legislative intent. If deemed inconsistent, both houses may pass a concurrent resolution and forward it to the Governor and agency head to formally oppose the regulation.

If the Department of Labor fails to act on the public and legislative opposition, O’Scanlon, Scharfenberger, and Flynn said they will move forward with the resolution in the coming weeks.

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Key Points

NJ lawmakers plan to introduce a resolution opposing DOL rule that redefines independent contractor status
Proposed change would affect thousands of gig workers by altering the “ABC test” used for classification
Both parties in the Legislature have formally opposed the rule and called for it to be rescinded or modified

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