O’Scanlon, Scharfenberger, Flynn Slam Murphy Admin for Proposed GIG Worker Rule Change

Insider NJ

Senator Declan O’Scanlon, Assemblyman Gerry Scharfenberger, and Assemblywoman Vicky Flynn (R-13) slammed Trenton Democrats for pushing a proposed rule change that might reclassify many gig economy workers from independent contractors to employees, making everything from youth athletics to food delivery more expensive.

In the 2018-2019 Legislative Session, Democrats attempted to pass similar legislation but failed to advance it through the legislature due to strong opposition from freelance workers and New Jersey businesses.

“Governor Murphy and his Department of Labor now seem to be coming back at this issue on their way out the door with their new rule proposal regarding independent contractors that, if what we’re hearing from so many worried independent contractors is true, will only serve to make New Jersey more unaffordable for hardworking residents,” said Sen. O’Scanlon. “That the policy, which could have a wide-reaching impact on everything from rideshare services like Uber and Lyft, to freelance writers and photographers, insurance agents, baseball umpires, and countless other professions, is happening without legislative input is also concerning. The Governor, and the folks at the Department of Labor, should hear the terrified voices of these hard-working independent workers and abandon any effort or policy change that would negatively impact them. No one should want to lower pay, eliminate worker flexibility, and increase the cost of your next delivery order or the registration fee for your child’s sports league. I’m looking forward to hearing from the Department after the comment period on this policy is over with assurance that they’ve heard from all those potentially impacted. As I’ve formed a good working relationship with the Department, I’m going to remain cautiously optimistic. Our system is working now, no one has made a sound argument for significant change. Devastating these people, as was attempted in California and attempted, and resoundingly defeated, here in 2019, isn’t an option anyone in New Jersey should tolerate. We won’t.”

“The proposed rule changes would be disastrous for anyone currently working as an independent contractor. There are many people who need the flexibility and freedom that working as an independent contractor gives them,” said Assemblyman Scharfenberger. “Conversely, companies like the ability to hire individuals or small firms on a contract basis without encumbering more full-time employees. If these rule changes are implemented, it could literally cost people their livelihoods. This is a textbook example of government fixing what is not broken. The Governor and his administration should instead focus on the plethora of issues plaguing our state from their previous policies and legislation that’s been implemented.”

“Trenton isn’t creating jobs — it’s eliminating them,” said Assemblywoman Flynn. “These rules punish workers who choose independence. Contracting isn’t a loophole — it’s a lifeline. Small businesses are already overtaxed and struggling to recover from COVID — nearly a third shut down during the pandemic, and most still haven’t bounced back. Now Trenton wants to pile on more restrictions that would devastate their ability to survive. Bureaucrats shouldn’t control how law-abiding residents earn a living. Trenton needs to stop micromanaging workers and crushing job creators. Governor Murphy must step in and stop this overreach now.”

The proposed change seeks to reinterpret the long-standing “ABC test” used to determine whether a worker is an independent contractor or an employee causing thousands of gig workers—including rideshare drivers, financial advisors, truck drivers, freelance creatives, and on-demand service providers—to potentially lose their independent status, forcing businesses to treat them as employees. A similar proposal was passed into law in California in 2019, but was rolled back almost entirely just a year later after residents and gig workers were negatively impacted.

“Democrats in Trenton have continually made New Jersey more expensive so our fierce skepticism is well justified. This could easily be just another way that everyday New Jerseyans will be hurt by their disastrous policies instead of fostering an economy that supports flexibility, growth, and affordability,” O’Scanlon concluded.