Senator Declan O’Scanlon, Assemblyman Gerry Scharfenberger, and Assemblywoman Vicky Flynn of New Jersey’s 13th legislative district have announced plans to introduce legislation challenging new rules proposed by the Department of Labor and Workforce Development. The lawmakers say these rules would change how independent contractors are classified in the state.
Both Democratic and Republican legislators have formally opposed the rule proposal and urged the New Jersey Department of Labor (NJDOL) to withdraw it.
“This is yet another misguided attempt by the Murphy administration to overregulate New Jerseyans out of their livelihoods,” said Sen. O’Scanlon. “These proposed rules by the DOL directly contradict the Legislature’s intent and would wreak havoc on independent contractors who rely on flexibility and autonomy to make a living. We’re not going to sit back and let unelected bureaucrats and Trenton Democrats make life more expensive and more complicated for thousands of hardworking people. That’s why I’ll be introducing legislation to declare these rules inconsistent with legislative intent and stop them before they do serious harm if the DOL doesn’t respond to the public outcry and significantly modify or entirely rescind the proposed rule changes. The livelihoods of countless New Jerseyans are on the line.”
“The proposed changes would be disastrous for anyone who depends on the flexibility that independent contracting provides,” said Assemblyman Scharfenberger. “From small business owners to part-time freelancers, this is a lifeline for thousands of people across New Jersey. Stripping away this independence would burden both gig workers as well as businesses who prefer to work with independent contractors in a more copacetic arrangement. This is government fixing what isn’t broken—and we will not let it happen.”
“These rules are a direct attack on worker freedom and the ability of New Jerseyans to control their own livelihoods,” said Assemblywoman Flynn. “For many independent contractors—especially parents, caregivers, and those juggling multiple jobs—this flexibility isn’t a luxury, it’s a lifeline. The Murphy administration’s proposal would rip that away, forcing people into rigid employment models that don’t work for their lives. I will fight alongside Senator O’Scanlon and Assemblyman Scharfenberger to stop this overreach in its tracks and ensure Trenton doesn’t crush the very opportunities our residents depend on.”
The new rule aims to reinterpret what is known as the “ABC test.” This test determines whether someone is an employee or an independent contractor under state law. If adopted, thousands of gig workers—including rideshare drivers, financial advisors, truck drivers, freelance creatives, and others—could lose their status as independent contractors. This could also require businesses working with them to pay higher taxes.
According to Article V, Section IV, paragraph 6 of the New Jersey Constitution, lawmakers can review any regulation proposed by an administrative agency like NJDOL if they believe it does not match legislative intent as set forth in statute. If found inconsistent with legislative intent through a concurrent resolution passed by both houses, lawmakers can notify both the Governor and agency head.
A similar law was enacted in California in 2019 but was largely reversed after one year when negative effects were reported among residents and gig workers.
