M E M O R A N D U M

TO:                               Members of the Senate Budget and Appropriations Committee

FROM:                       Hilary Chebra, Director Government Affairs, CCSNJ

RE:                               S-1386 (Singleton)

The Chamber of Commerce Southern New Jersey (CCSNJ) respectfully opposes S-1386 (Singleton), which would establish a system for portable benefits for workers who provide services to consumers through contracting agents.

To start, we appreciate Senator Singleton’s proactive outreach to solicit feedback from CCSNJ members, some of which is reflected in today’s amendments. However, the CCSNJ must remain opposed to the bill due to our concerns that as written the legislation will increase costs for consumers, small businesses, and the employees of CCSNJ member companies, as well as jeopardize the independence of workers who choose to utilize these platforms.

If enacted this bill would have several unintended consequences. To fund “portable benefits” accounts – and to cover the overhead costs of “qualified portable benefits providers” – S-1386 (Singleton) would impose a 15 percent surcharge on every dollar paid to app-based delivery workers by local commerce platforms. This surcharge would dramatically increase the operating expenses for those platforms and lead to higher prices or reduced services for consumers. At a time when residents and businesses continue to struggle with persistently high inflation, raising prices on consumers should be an option of last resort. 

 Importantly, it is worth noting that other states including Minnesota and nearby Massachusetts and Pennsylvania have proposed contribution rates between 3 and 5 percent – making New Jersey’s 15 percent proposal an outlier. This will undoubtedly make New Jersey significantly more expensive to operate in versus other states that have legislated portable benefits. The CCSNJ strongly believes that a lower rate could still provide benefits to workers while ensuring businesses remain viable at a time when it is more important than ever to be an affordable place to operate.

Additionally, S-1386 (Singleton) also fails to protect the flexibility of workers who use these platforms. Unlike other legislative efforts across the country, this bill risks forcing workers into an employment status they do not want. More often than not, individuals use these apps because they offer flexibility and the ability to earn income on their own schedule. The CCSNJ continues to respectfully suggest that language is needed to provide clear confirmation that app-based workers are independent contractors ensuring their continued flexibility.

As it relates to the southern portion of the State, it is well-known that the region is a mass transit desert with limited access to reliable public transportation, predominantly in underserved areas. Many residents and employees of CCSNJ member companies depend on these platforms to get to work, school, medical appointments, and other essential destinations. Given the increased costs associated with this bill, it could put these services out of reach for low- and middle-income residents who are already struggling with transportation barriers. Undeniably, raising prices would further isolate communities that have few other transit options, making it harder for people to participate in the local economy and access critical services.

In conclusion, the CCSNJ again thanks Senator Singleton for today’s proposed amendments, while respectfully requesting they go further to combat high costs and assure continued flexibility for app-based workers. For these reasons, we must continue to oppose S-1386 (Singleton) and appreciate the opportunity to share our concerns.