“This rule change will drive small businesses owners out of New Jersey, plain and simple,” said Sen. Bramnick. “By misclassifying thousands of independent contractors as employees, the Labor Department would strip away the flexibility and freedom that make these professions possible. The result will be lost jobs, higher costs, and fewer opportunities for residents.”

The proposed rule change seeks to reinterpret the long-standing “ABC Test,” threatening to reclassify thousands of independent contractors—including financial advisors, rideshare drivers, truckers, freelances, and others—as employees. This would trigger increased payroll tax obligations for companies, in addition to upheaving independent business models.

An FSI-Oxford Economics study revealed that 65% of financial advisors would consider relocating out of New Jersey if the DOL rule changes were to go into effect. This alone would lead to a loss of an estimated loss of 4,670 workers and $470 million in GDP.