Republican lawmakers in New Jersey have voiced strong opposition to a proposed rule change by the Murphy administration that could reclassify many gig economy workers from independent contractors to employees. Senator Declan O’Scanlon, Assemblyman Gerry Scharfenberger, and Assemblywoman Vicky Flynn criticized the move, arguing it would increase costs for services such as youth athletics and food delivery.
A similar legislative effort was made during the 2018-2019 session but failed due to significant resistance from freelance workers and businesses across New Jersey. The new proposal seeks to reinterpret the “ABC test,” a standard used to determine worker classification. If implemented, thousands of gig workers—including rideshare drivers, financial advisors, truck drivers, and freelance creatives—could lose their independent status.
“Governor Murphy and his Department of Labor now seem to be coming back at this issue on their way out the door with their new rule proposal regarding independent contractors that, if what we’re hearing from so many worried independent contractors is true, will only serve to make New Jersey more unaffordable for hardworking residents,” said Sen. O’Scanlon. “That the policy, which could have a wide-reaching impact on everything from rideshare services like Uber and Lyft, to freelance writers and photographers, insurance agents, baseball umpires, and countless other professions, is happening without legislative input is also concerning. The Governor, and the folks at the Department of Labor, should hear the terrified voices of these hard-working independent workers and abandon any effort or policy change that would negatively impact them. No one should want to lower pay, eliminate worker flexibility, and increase the cost of your next delivery order or the registration fee for your child’s sports league. I’m looking forward to hearing from the Department after the comment period on this policy is over with assurance that they’ve heard from all those potentially impacted. As I’ve formed a good working relationship with the Department, I’m going to remain cautiously optimistic. Our system is working now, no one has made a sound argument for significant change. Devastating these people, as was attempted in California and attempted, and resoundingly defeated, here in 2019, isn’t an option anyone in New Jersey should tolerate. We won’t.”
Assemblyman Scharfenberger echoed concerns about job losses: “The proposed rule changes would be disastrous for anyone currently working as an independent contractor. There are many people who need the flexibility and freedom that working as an independent contractor gives them,” he said. “Conversely, companies like the ability to hire individuals or small firms on a contract basis without encumbering more full-time employees. If these rule changes are implemented, it could literally cost people their livelihoods. This is a textbook example of government fixing what is not broken. The Governor and his administration should instead focus on the plethora of issues plaguing our state from their previous policies and legislation that’s been implemented.”
Assemblywoman Flynn added: “Trenton isn’t creating jobs — it’s eliminating them,” she said. “These rules punish workers who choose independence. Contracting isn’t a loophole — it’s a lifeline. Small businesses are already overtaxed and struggling to recover from COVID — nearly a third shut down during the pandemic, and most still haven’t bounced back. Now Trenton wants to pile on more restrictions that would devastate their ability to survive. Bureaucrats shouldn’t control how law-abiding residents earn a living. Trenton needs to stop micromanaging workers and crushing job creators. Governor Murphy must step in and stop this overreach now.”
California enacted similar rules in 2019 but reversed most provisions just one year later after negative effects were reported among residents and gig workers.
Senator O’Scanlon concluded: “Democrats in Trenton have continually made New Jersey more expensive so our fierce skepticism is well justified. This could easily be just another way that everyday New Jerseyans will be hurt by their disastrous policies instead of fostering an economy that supports flexibility, growth, and affordability.”
