On Monday, June 23, Chamber of Commerce Southern New Jersey (CCSNJ) Director of Government Affairs Hilary Chebra provided testimony to the New Jersey Department of Labor and Workforce Development (NJDOL) on changes to N.J.A.C. 12:11—aimed at clarifying the ABC test for worker classification. New Jersey uses the ABC test to determine whether a worker is an independent contractor or an employee under its wage and hour laws.

Ms. Chebra cautioned that the proposed changes may have significant unintended consequences for New Jersey’s workforce and economy. She noted that as written, the proposed rule could unintentionally penalize businesses simply for requiring contractors to comply with basic legal and safety standards. She also highlighted that the changes to Prong C of the ABC test could disqualify legitimate independent contractors, especially those in specialized or project-based fields who may not operate with multiple clients, formal branding, or ongoing advertising.

Additionally, Ms. Chebra pointed to California’s implementation of AB5, which showed a decline in self-employment and overall job numbers, suggesting that New Jersey could see similar economic impacts if the proposal moves forward unchanged.

Ms. Chebra encouraged the Department to hold additional public hearings and extend the public comment period to ensure a broader range of input from businesses and workers across the state.

 To read the CCSNJ's written comments, click here