New Jersey is considering new rules that could reclassify a large number of independent contractors as employees. The Department of Labor and Workforce’s proposal, titled “Proposed New Rules: N.J.A.C. 12:11; ABC Test; Independent Contractors,” has prompted concern from advocacy groups and freelancers across the state. The public comment period for these proposed changes ends today.
Independent Women, an organization focused on economic opportunity for women, has submitted a formal comment opposing the rule. They argue that the measure would harm not only freelancers but also small businesses and women who rely on flexible work arrangements.
“Workers, especially women, who depend on this model of work will lose flexibility and be forced out of the workforce. Small businesses that rely on independent contractors would face new legal exposure and potential penalties from misclassification findings. Those who cannot afford to hire their independent workforce as employees may be forced to shut down. We believe this will have a detrimental impact on the self-employed workforce and the state’s economy overall,” said Patrice Onwuka, director of Independent Women’s Center for Economic Opportunity.
The proposed regulations are similar to those previously enacted in California, which resulted in significant disruptions to freelance work in that state. Many workers lost contracts and income following California’s implementation of stricter employment classification laws.
Women are likely to be disproportionately affected by these changes because independent contracting allows them to balance work with caregiving responsibilities or personal health needs.
Polling conducted by Independent Women indicates broad support for flexible work arrangements among voters in New Jersey. According to their data, 82% of women and overall voters, 80% of young voters, and 79% of seniors agree that people should have the option to be independent contractors.
“New Jersey’s Department of Labor is trying to enact a crackdown on independent contracting that the legislature refused to legislate in 2019. Freelancers, gig workers, and self-employed New Jersey residents should not be forced into a traditional 9-to-5 job. They should be able to choose the model of work that fits their unique circumstances,” Onwuka added. “If enacted, women will lose the flexibility they depend on to balance work with caregiving and other important priorities. California should serve as a cautious lesson to New Jersey that cracking down on freelancing will devastate the economy.”
To encourage public engagement before the deadline, Independent Women’s Network is calling for individuals to submit comments through its action center: Oppose New Jersey’s Crackdown on Independent Work.
Onwuka joined Rosemary Becchi, President & Founder of Jersey 1st, in writing an op-ed published by Daily Caller urging against adopting measures similar to those passed in California.
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