Ocean County officials have voiced strong concerns about a proposed rule from the New Jersey Department of Labor and Workforce Development (NJDOL) that would change how independent contractors and gig workers are classified in the state.
The rule aims to formalize the “ABC test” for determining whether a worker is an employee or an independent contractor. This has led to debate among local businesses, contractors, and gig workers about potential impacts on their livelihoods.
“The State’s one-size-fits-all rule may hurt the very people it claims to protect; the independent workers, small businesses, and local economies that depend on flexibility and Ocean County’s local contractors, tradespeople, and entrepreneurs that rely on flexible work arrangements,” said Ocean County Commissioner Jennifier Bacchione. “The State should not be penalizing them for working independently.”
If adopted, the new rule would make it more difficult for businesses to classify workers as independent contractors. This could mean many gig workers and contractors would need to be reclassified as employees. As a result, businesses might face new payroll tax obligations, requirements for benefits, and unemployment contributions. Workers who are reclassified would gain access to protections such as minimum wage, overtime pay, and unemployment insurance.
“Not every contractor is being exploited; there are many who choose independence because it fits their lives and Trenton shouldn’t take that choice away,” Bacchione added. “The State cannot claim to support economic growth while creating new barriers for the very people driving our local economy.”
Business associations and gig workers in Ocean County have warned that these changes could reduce workforce flexibility, increase costs for employers, and disrupt jobs across various sectors.
“This rule doesn’t just change paperwork; it changes livelihoods,” said Frank Sadeghi, Deputy Director of the Ocean County Board of Commissioners. “Ocean County stands for a fair economy, one that values hard work, rewards entrepreneurship, and lets people earn a living on their own terms.”
Industries such as ridesharing, delivery services, and other on-demand platforms could see increased costs or changes in how they engage with workers if the rule goes into effect. Some worry this will limit opportunities for those who prefer working independently or force them into employment status they do not want.
“The State shouldn’t be telling hardworking New Jerseyans how to earn their living,” said Ocean County Commissioner Robert S. Arace. “For parents juggling schedules, retirees supplementing income, and young people building experience, flexible work is a necessity, not a loophole. Trenton must not punish independence under the guise of protection.”
The New Jersey Business & Industry Association (NJBIA) has stated its strong opposition to the proposed NJDOL worker classification rule. The proposal has also received bipartisan criticism from legislators and members of the public during its comment period—over 9,500 written comments were submitted to NJDOL regarding this proposal with more than 99% expressing opposition. The rule has yet to be formally adopted.
In response to these concerns, some lawmakers have introduced bills aiming to exempt certain licensed or regulated professions—including real estate agents, finance professionals, insurance agents, and independent truckers—from these requirements.
On November 10th Senator Declan O’Scanlon (R-13) introduced Senate Concurrent Resolution SCR-138 seeking to nullify NJDOL’s proposed rules entirely by arguing they conflict with legislative intent. If passed by both houses of the Legislature this resolution would take effect without needing approval from the governor.
