The New Jersey Department of Labor and Workforce Development filed a notice of proposal Monday for new rules with the state Office of Administrative Law that would codify the NJDOL’s interpretation of the ABC test for independent contractor status under the New Jersey Unemployment Compensation Law, the New Jersey Wage and Hour Law, and the New Jersey Wage Payment law, among other New Jersey laws.
The department said the proposed rules aim not only to safeguard the rights and benefits of employees who have been wrongly classified as independent contractors, but also to affirm the right of genuine independent contractors to forgo employment in favor of engaging in independently established business enterprises. The NJDOL said the proposal reflects the department’s ongoing commitment to protecting workers’ rights and ensuring a level playing field for employers across the state.
The notice of proposal for new rules will be published in the May 5, 2025, issue of the New Jersey Register, and there will be a 60-day period beginning that day during which the NJDOL will accept written comments on the proposed new rules.
The proposed rules outline the application of the ABC test, which is critical in determining whether a worker should be classified as an employee or an independent contractor under various New Jersey statutes, including but not limited to the Unemployment Compensation Law, the Wage and Hour Law, and the Wage Payment Law. The proposed rules include detailed guidelines for evaluating the three parts of the ABC test, ensuring that employers are well-informed and better equipped to make appropriate classification decisions.
The proposed rules stem from the NJDOL’s interpretation of the statutory ABC test, and are informed by binding decisions of the Appellate Division of the New Jersey Superior Court and the New Jersey Supreme Court.
“The work being done in New Jersey to combat worker misclassification is a testament to our state’s commitment to justice and fairness in the workplace,” said Labor Commissioner Robert Asaro-Angelo. “This rule proposal is a critical step in providing clear, reliable guidance to employers to help them comply with the law and prevent the illegal misclassification of employees. Not only would these new rules protect workers’ rights, but they would also ensure that bona fide independent contractors understand what makes them independent contractors, rather than employees, so that they can continue to operate with autonomy.”
By codifying the NJDOL’s interpretation of the ABC test, the department said the proposed rules would provide clarity, reducing the risk of misclassification and enhancing compliance across industries.
Gov. Murphy created the Task Force on Misclassification, which released a report with recommendations leading to the governor signing a package of laws in January 2020.
