Circulate NJ Chair David Greek didn’t hold back when discussing his disgust for the fact the state’s new ABC rules regarding the determination of contractors went into effect today – despite massive opposition from business groups.
The regulations change how the state applies its already-strict “ABC test” for determining whether a worker can be classified as an independent contractor, potentially making it more difficult to maintain legitimate independent-contractor relationships.
The fact they are being allowed to be implemented despite similar rules causing disruption elsewhere, makes it even worse, Greek said.
“There is a deep and very real fear among the logistics industry that these regulations were not fully thought out,” he said in a statement. “When these same changes were implemented in California, the results were brutal.
“Circulate NJ’s members will be closely monitoring the fallout and impact that we’ll now experience here in New Jersey.”
The N.J. Business & Industry Association and the N.J. State Chamber also put out strongly worded statements.
The NJBIA was among a host of groups who recently sent a letter to the governor, urging her to delay implementation — or even consideration — until next summer. Its CEO, Michele Siekerka, called the regulations ‘disastrous.’
“Implementing the ABC rules in their current overreaching form is another hit, and an unnecessary one at that, on New Jersey’s job creators,” she said in a statement.
“Right now, we are experiencing extensive job loss in New Jersey, resulting from continuing WARN notices and a persistent stretch of large employers choosing to leave our state, taking thousands of jobs along with them. Moreover, we are ranked as the last state in the nation for business climate and friendliness.
“This action adds to the lack of predictability and certainty that New Jersey job creators need to do business and it gives hard-working, entrepreneurial freelancers something they never asked for — a regulatory mountain to climb to be an independent contractor in New Jersey.”
Siekerka noted the DOL adopted the rule despite 9,500 comments opposing it during the rulemaking period and, since then, another 2,000 letters from impacted freelancers, nonprofits and businesses, as well as legislators from both sides urging its delay.
State Chamber CEO Tom Bracken noted the regulations change how the state applies its already-strict “ABC test” for determining whether a worker can be classified as an independent contractor, potentially making it more difficult to maintain legitimate independent-contractor relationships.
“No one supports the intentional misclassification of workers,” he said. “But efforts to prevent abuse should not undermine legitimate business arrangements or restrict opportunities for people who choose independent work.
“At a time when New Jersey must improve its business climate and competitiveness, we should be reducing uncertainty – not creating more of it. We urge the administration and Legislature to act quickly to address these concerns.”
Greek closed his statement with a prediction and a promise.
“Today is not the end of this issue,” he said. “It’s just the beginning.”
