The GigReporter

Earlier this year we wrote about proposed regulations from the New Jersey Department of Labor as they were entering a public comment period. In summary, these regulations would adopt many judicial interpretations of the existing ABC independent contractor test, but also add troubling new interpretive guidelines that would make it very difficult for owner/operators to qualify as independent contractors, particularly a provision that an individual’s motor vehicle counts a part of the hirer’s place of business. Since then, the Department has received over nine thousand mostly negative comments, and a group of state legislators is preparing a concurrent resolution to nullify the regulations.

The public comment period on the regulations closed in July, and the Department of Labor published approximately 8,300 comments on it on September 4^th. Another batch of nearly 1,200 comments, misplaced because of technical problems are set to be published soon, bringing the total number of comments to about 9,500, nearly all of them negative

A bipartisan group of New Jersey legislators has been critical of the proposed regulations, and some have announced their intention to propose a concurrent resolution[1] that would nullify the regulations. It pays particular attention to the provision making vehicles part of a place of business, stating that it would contradict precedent from the Third Circuit Court of Appeals that upheld the ABC test because it allowed independent contractors to work as drivers for transportation network companies.

The New Jersey Legislature has the power to nullify administrative regulations through a concurrent resolution, without any ability by the governor to veto it. If you are in a New Jersey business, contact your state representatives and urge them to support the proposed concurrent resolution if it is introduced.

[1] https://www.senatenj.com/DocumentCenter/View/4637/LD13_GigWorker_bill