EANJ Urges Employers to Take Action on NJDOL’s Proposed Worker Classification Rules

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Survey & Roundtable: Share How These Rules May Impact Your Business

Livingston, NJ— The Employers Association of New Jersey (EANJ) is calling on businesses across the Garden State to weigh in on a critical issue that could redefine the future of independent contracting. The New Jersey Department of Labor and Workforce Development (NJDOL) has proposed new rules that formalize how it interprets and enforces the ABC test to determine worker classification, which could significantly affect a business’s ability to engage independent contractors.

To ensure that employer voices are heard, EANJ has launched a brief survey—“Your Voice Matters: Help Shape the Future of Independent Contracting in NJ”—and will be hosting a roundtable discussion on Thursday, July 24, from 10:00 AM to 11:30 AM at the Morris County Library in Whippany, NJ. This session aims to gather real-world employer feedback that EANJ will submit during the extended public comment period, which runs through August 6, 2025.

Take the survey here: https://www.surveymonkey.com/r/RYGLJTJ

Register for the event here: https://www.eanj.org/programs-training/seminars/eanj-employer-roundtable-discussion-njdol-abc-test

"We encourage employers and independent workers of all sizes to engage with this process,” said Christine Myers, President of EANJ. “The implications of these proposed rules reach across industries and job types. Your perspective matters, and this is your chance to make it count.”

Understanding the Proposed Rules

The proposed rules would codify NJDOL’s interpretation of the ABC test, which consists of three prongs used to determine whether a worker is an independent contractor or an employee entitled to state-mandated benefits like overtime, unemployment insurance, short-term disability, and paid sick leave.

While the ABC test has been in place since 2015, this marks the first time NJDOL is proposing formal rules that clearly define how each prong will be interpreted and enforced, setting a precedent for future audits and enforcement actions. Learn more: https://www.eanj.org/resources-tools/hr-alerts/important-update-njdols-proposed-worker-classification-rules

Why This Matters

Employers are already raising concerns about whether the NJDOL’s proposed interpretations reflect “business as usual” or represent a shift in enforcement that could reclassify current contractors as employees. The impact on operations, compliance obligations, and employment costs could be substantial.

About EANJ

EANJ is a nonprofit trade association dedicated to helping employers make sound and informed workforce decisions. For over 100 years, EANJ has supported businesses with expert HR guidance, legal compliance updates, and employer advocacy at the state level.

Contact: Britni Orcutt, Member Engagement Manager, EANJ Tel.: 973-758-6800 ext. 123 Email: britni@eanj.org