TRENTON, N.J. — New Jersey Republican legislative leaders are calling on Gov. Mikie Sherrill to delay new state regulations governing independent contractor classification until July 1, 2027.
Senate Republican Leader Anthony M. Bucco and Assembly Republican Leader John DiMaio made the request in a letter to Sherrill as the New Jersey Department of Labor and Workforce Development’s new regulations clarifying the state’s ABC test for determining whether a worker is an independent contractor or employee become operative Thursday.
The lawmakers argue that the regulations could have significant effects on independent workers and businesses and that the issue should be addressed through the legislative process.
“In practical terms, the Legislature was given a matter of weeks, not four months, to consider the implications of an economy-wide regulation affecting independent workers and businesses across virtually every sector of New Jersey’s economy,” Bucco and DiMaio wrote. “That was not enough time.”
“A policy this consequential should be decided through the legislative process, not administrative rulemaking,” the leaders wrote, noting that lawmakers previously considered legislation on independent contractor classification and did not enact it.
“An administrative regulation should not substitute for a legislative consensus that was never reached,” they wrote.
Bucco and DiMaio also cited more than 9,500 public comments submitted during the rulemaking process, saying more than 99% opposed the regulations.
“Whatever one’s position on the underlying policy, opposition on that scale should warrant greater scrutiny before an economy-wide regulation becomes operative,” they wrote.
The Department of Labor and Workforce Development adopted the regulations May 5 and delayed their operative date by 120 days to allow time for potential legislative changes.
Lawmakers are considering legislation addressing the independent contractor status of certain professions.
“That should tell us something,” the leaders wrote. “We should not be forced into a last-minute race to determine which occupations receive special treatment before a sweeping regulation takes effect.”
According to Bucco and DiMaio, Senate President Nicholas Scutari also asked Sherrill in August to delay the regulations until July 1, 2027, saying more time was needed for review. The lawmakers said the New Jersey Business & Industry Association and New Jersey State Chamber of Commerce have also requested a delay.
The Republican leaders also raised concerns about the potential economic effects of implementing the regulations.
“This is not the time to introduce additional uncertainty that could cause businesses to reduce opportunities for contractors, move work elsewhere or avoid otherwise legitimate working relationships,” Bucco and DiMaio wrote.
Bucco and DiMaio asked the administration to use a nine-month delay to convene a working group consisting of workers, organized labor, independent contractors, small businesses, employers and nonprofits. They also called for the Legislature to address independent contractor classification comprehensively rather than through exemptions for individual professions.
“Tomorrow should not become an arbitrary deadline for getting this right,” they wrote. “A nine-month delay is reasonable. It has bipartisan support.”
