NJBIA President and CEO Michele Siekerka released the following statement regarding the Sherrill administration’s adoption of a controversial New Jersey Department of Labor and Workforce Development rule that changes the parameters of ABC test to make it more difficult to be an independent contractor in New Jersey. 

The proposal was initially made by the Murphy administration on May 5, 2025.  

Today marks the day when the Sherrill administration was required to abandon or adopt the rule. 

NJBIA’s review of the rules as amended leads us to the conclusion that these changes have not gone far enough at all in providing needed flexibility and clarity for freelancers and businesses. These concerns of uncertainty and lack of predictability were echoed in more than 9,500 letters opposing the rule last year. 

The NJDOLWD will impose a 120-day stay of the rule in an effort to work with the Legislature on required statutory changes. 

“For over a year, NJBIA has been out front explaining the significant challenges our job creators, our gig workers and our entrepreneurs would face if this Murphy era rule proposal was adopted as stated, effectively grinding significant portions of the gig economy to a halt in New Jersey.

“That proposal significantly reduced flexibility and opportunities for freelance workers who choose to be so, as well as the added costs facing businesses. It is significant to note that the rules would have a negative disproportionate impact on women, working mothers and minorities, not to mention the further hit to New Jersey’s affordability agenda.

“Over the past 90 days we reiterated these extensive concerns and strongly encouraged the Sherrill administration to abandon that misguided proposal through transparent and open dialogue, which was provided. While some of our suggested changes were included, it is definitely a disappointment that any form of a new ABC rule proposal is advancing toward adoption.

“The 120-day stay until the rules become effective provides an open window to work now with the Legislature on some needed statutory adjustments that only it can provide.

“We reiterate the need for independent contractors and businesses to have access to the flexible job opportunities they need and desire, as well as the predictability the whole of the business community needs in understanding the rules distinguishing independent contracts from employees that still fails to exist today under these rules.

“Further, these amendments would seem to trigger the requirement for a new public comment period, and we strongly encourage this.

“Our work here is far from done. We will continue to work alongside the Legislature and administration toward a further revised rule that recognizes the need to preserve the exact jobs and opportunities that remain in jeopardy.

“We thank the thousands of freelance workers and businesses of all sides who took the time over the past year to constructively voice their realistic concerns about the rule. We need to keep those voices at the forefront over the next 120 days.”