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NJ ACR177

NJ ACR177
Declares Department of Labor and Workforce Development new rules concerning employment status test for independent contractors inconsistent with legislative intent.


summary

Introduced
12/08/2025
In Committee
12/08/2025
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This concurrent resolution embodies the findings of the Legislature that rules proposed by the Department of Labor and Workforce Development at N.J.A.C. 12:11, to modify the factors that may be considered when determining whether an individual is an independent contractor, are not consistent with the legislative intent of the ABC test codified in the unemployment compensation law of the State. The Department of Labor and Workforce Development has 30 days from the date of transmittal of this resolution to amend or withdraw the proposed rules or the Legislature may, by passage of another concurrent resolution, exercise its authority under the New Jersey Constitution to invalidate the proposed rules in whole or in part.

AI Summary

This concurrent resolution addresses proposed rules by New Jersey's Department of Labor and Workforce Development concerning the classification of workers as independent contractors or employees, which the Legislature believes do not align with the original legislative intent of the ABC test. The ABC test, part of the state's unemployment compensation law, requires three specific standards to be met for a worker to be classified as an independent contractor: being free from employer control, performing services outside the usual business course or location, and being engaged in an independently established trade or profession. The resolution finds that the proposed rules improperly modify these standards by introducing factors that effectively presume employment status, such as considering digital application usage, liability insurance, and professional licensure as indicators of employment rather than independent contracting. The resolution gives the Department of Labor 30 days to amend or withdraw these proposed rules at N.J.A.C. 12:11, or the Legislature may take further action to invalidate them, consistent with the state constitution's provisions for legislative review of administrative rules.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

Introduced, Referred to Assembly Labor Committee (on 12/08/2025)

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