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NJ SCR62

NJ SCR62
Declares Department of Labor and Workforce Development new rules concerning employment status test for independent contractors inconsistent with legislative intent.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 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 declares that new rules proposed by the Department of Labor and Workforce Development (DOL) regarding the determination of independent contractor status are inconsistent with the Legislature's original intent. The Legislature established the "ABC test" within the unemployment compensation law to distinguish between employees and independent contractors, requiring that three specific criteria (A: freedom from control, B: service outside the usual course of business or place of business, and C: customarily engaged in an independently established trade) must all be met for an individual to be considered an independent contractor. The resolution argues that the DOL's proposed changes, such as considering the use of digital applications or requiring liability insurance as indicators of employment, and excluding transportation network company drivers from independent contractor status, undermine the ABC test's intent by presuming employment rather than independent work. The DOL has 30 days to amend or withdraw these proposed rules, or the Legislature may pass another resolution to invalidate them.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Labor Committee (on 01/13/2026)

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