TRENTON, N.J. — Governor Mikie Sherrill’s controversial independent contractor regulations took effect Thursday despite a last-minute chorus of objections from New Jersey’s business community and members of both political parties.
The new Department of Labor rules codify the state’s interpretation of the “ABC test,” the legal standard used to decide whether a worker may operate as an independent contractor or must instead be classified as an employee.
Business groups argue the regulations could make it harder for New Jerseyans to earn a living as freelancers and independent contractors while exposing businesses that hire them to additional uncertainty and potential liability.
And the opposition wasn’t confined to Republicans.
The New Jersey Business & Industry Association and New Jersey Chamber of Commerce urged Sherrill to postpone implementation until July 2027. Democratic Senate President Nick Scutari also sought a delay, while Republican legislative leaders Anthony Bucco and John DiMaio called on the governor to hit the brakes.
Sherrill didn’t.
Her administration maintains that the regulations don’t rewrite the law but merely clarify existing statutes and court precedent.
“If you are an independent contractor today, you will be an independent contractor tomorrow,” Sherrill insisted Wednesday.
Critics remain unconvinced. The rulemaking generated more than 9,500 public comments, and business groups said roughly 99% opposed the proposal.
Under New Jersey’s ABC test, businesses generally must demonstrate that a worker is free from their control, performs work outside the company’s usual course or place of business, and operates an independently established trade or business.
The political fight isn’t necessarily over. Lawmakers are considering exemptions for particular professions, and Sherrill has indicated she is open to carve-outs for occupations inadvertently affected by the regulations.
But for businesses, freelancers and independent contractors worried about how Trenton will apply the rules, October 1st has arrived without the delay they wanted.
Sherrill’s new contractor regime is officially in effect.
