Senator Jon Bramnick has voiced opposition to a proposed rule change by the New Jersey Department of Labor that would alter the classification of independent contractors. Bramnick warned that the measure could have significant negative effects on small businesses, workers, and families in the state.
“This rule change will drive small businesses owners out of New Jersey, plain and simple,” said Sen. Bramnick. “By misclassifying thousands of independent contractors as employees, the Labor Department would strip away the flexibility and freedom that make these professions possible. The result will be lost jobs, higher costs, and fewer opportunities for residents.”
The proposal aims to reinterpret the “ABC Test,” a standard used to determine whether a worker is an employee or an independent contractor. If adopted, it could lead to many professionals—including financial advisors, rideshare drivers, truckers, and freelancers—being reclassified as employees rather than independent contractors. This shift would increase payroll tax requirements for companies and disrupt existing business models.
A study conducted by FSI-Oxford Economics found that 65% of financial advisors might consider leaving New Jersey if the new rule takes effect. The report estimates this could result in a loss of approximately 4,670 workers and $470 million in gross domestic product for the state.
