On January 25, the Chamber of Commerce Southern New Jersey (CCSNJ) opposed S-1386 (Singleton), which would regulate the types of benefits employers provide independent contractors and freelance workers.

Although a well-intended bill, as written S-1386 (Singleton) is overly broad and restricts the flexibility and independence that many independent contractors desire. Additionally, the CCSNJ is concerned that this bill will have a particularly negative impact on entrepreneurs, who are critical to the start-up and innovation economy in New Jersey.

S-1386 (Singleton) would also require the contracting agent to increase the cost of services, which would make those services less affordable to consumers. This could lead to a drop in demand for services, which would in turn reduce the number of opportunities available for independent workers.

While the CCSNJ agrees that all workers deserve protections and benefits, we encourage the sponsor to review the California model, Proposition 22, which passed with 58 percent of the vote and struck a compromise between workers in the “gig economy” and the employer community. “Prop 22” balances the needs and rights of freelance workers, while also taking into consideration business owners rights to contract with individuals when they require specialized skills, or need someone to complete a short-term project or work independently.

S-1386 (Singleton) was amended in the Senate Labor Committee and passed by a vote of 3-0 with numerous Committee members absent for the hearing. The bill now moves to the Senate Budget & Appropriations Committee for consideration. Currently, there is no Assembly counterpart that has been introduced.

The CCSNJ looks forward to continuing to work with Senator Singleton on improving the bill as it moves through the legislative process. If you have questions, or are an employer that regularly uses independent contractors and would like to share your thoughts with the CCSNJ, please contact Christina Renna at crenna@chambersnj.com,

To read the CCSNJ’s testimony on S-1386 (Singleton), click here.