Ocean County officials are raising concerns about a New Jersey Department of Labor (NJDOL) proposal that would change how independent contractors and gig workers are classified under state law.
The proposed rule seeks to codify the “ABC test,” a stricter standard already used in some state labor cases to determine whether a worker should be classified as an employee rather than an independent contractor. If adopted, the rule could require many workers currently treated as contractors to be reclassified as employees, making them eligible for wage protections, overtime benefits, unemployment insurance, and other employee rights.
Businesses affected by reclassification could face new payroll tax obligations, benefits costs, and unemployment contributions.
Ocean County Commissioner Jennifer Bacchione, who serves as liaison to the county’s Division of Business Development and Tourism, said the policy could pose challenges for workers and companies that rely on contractor arrangements.
“The State’s one-size-fits-all rule may hurt the very people it claims to protect,” Bacchione said, arguing that many independent workers prefer flexible arrangements. She added that local contractors and small businesses “should not be penalized for working independently.”
Some businesses and local officials argue the rule could reduce workforce flexibility, increase costs for employers, and affect business models that rely heavily on independent labor. They note that industries such as ridesharing, delivery services, trades, and other on-demand work may need to change how they engage workers if the rule is implemented.
Deputy Director of the Ocean County Board of Commissioners Frank Sadeghi said the regulation could affect the county’s labor market. “This rule doesn’t just change paperwork, it changes livelihoods,” Sadeghi said, warning that it could alter how workers earn a living.
Supporters of worker reclassification at the state level have argued in the past that misclassification deprives workers of basic protections and shifts costs onto taxpayers when independent workers claim unemployment or lack proper coverage. The NJDOL has not yet released a final version of the rule or responded to the concerns raised by Ocean County officials.
Commissioner Robert S. Arace said many people choose contract work for lifestyle reasons, noting that flexible jobs serve parents, retirees, and younger workers entering the workforce.
Ocean County officials are urging the NJDOL to consider a compromise that addresses worker exploitation without eliminating independent arrangements. Commissioner Virginia E. Haines said any statewide policy should take into account the needs of local businesses and workers who rely on contract opportunities.
The NJDOL is currently reviewing public feedback on the proposal. If finalized, the rule would establish a statewide standard for worker classification, impacting how companies define employment and how independent contractors operate across New Jersey.
I guarantee that none of the people proposing this law has ever worked independently in their lives. This is another example of the government attempting to place controls and restrictions on an industry that they never worked in, and completely comprehend how such real world events such as weather, delayed deliveries, and a host of other uncontrollable issues effect a job site. I’m both an independent contractor, (real estate agent), and a small builder, who relies on other independent contractors to make a living. In these businesses there are never such things as 8 hour days. Like our forefathers, you work to get the job done, don’t take hour lunches, may have to work Sundays and holidays, and don’t take off for State or National recognized days off such as election day, or veteran’s day. We work when the Sun shines and our efforts, hard work and sacrifice enable thousands of other workers and industries make a living. Is this another example of socialism tearing apart the American Dream???
Independent contractors have unique needs and benefits that far outweighs the concerns expressed by the “state supporters of worker classification.” A flexible and simple independent contractor agreement should make it clear the benefits and responsibilities for both sides. Unemployment benefits for independent contractors should be based solely on what they have paid into the system. The more put in, the more benefits. “Proper coverage,” if chosen by the worker, should also be based upon what is paid into the system.
Lol are you trying to protect the worthless corporations like FedEx amazon and Uber and meal delivery companies killing working labor. Make them pay the state stop protecting them.
Independent contractors are needed and do not suffer from lack of services. If they choose flexiblity over traditiobal employment; it is understood they do not qualify for employee benefits. They are however required to pay their fair share of income tax to the state & Irs via a 1099 filing every year, There is no benefit to the local economy to change the rules regarding independent contractor services.
Ah yes, Democrats spin their web, to bilk more tax money from the very people that depend on it the most. I thought the new governor was for lowering taxes, well possibly strike one gov, lets see what she does!
Total garbage. Another money grab by a failing State Government. Ie Gov Murphy and his commie socialist buddies. My opinion of course.
Lakewood is in trouble.