A proposed rule by New Jersey's Department of Labor could redefine independent contractor status in ways that mirror California's controversial AB5 law, sparking concern among truckers and small businesses, reports Dubai's Shipping Herald.
The rule aims to codify the state's ABC test, making it harder for workers to qualify as independent contractors. Critics say it could reclassify thousands of truck drivers as employees, disrupting port operations and supply chains.
Attorney Richard Reibstein warned the changes would create a 'hostile and unworkable legal environment,' potentially driving freelancers and IC-reliant businesses out of the state.
The ABC test includes three prongs: A (freedom from control), B (work outside the employer's usual business), and C (operation of an independent business). The B prong is especially contentious for trucking, as it may disqualify owner-operators who haul freight for carriers.
Democratic Sen. Angela McKnight voiced opposition, noting that 75 per cent of New Jersey truckers are ICs and reclassification could lead to relocation, supply chain issues, and higher consumer costs.
The rulemaking process is nearly complete, with no further hearings scheduled. The final rule could be implemented by the Department of Labor without legislative approval.
SeaNews Turkey
The rule aims to codify the state's ABC test, making it harder for workers to qualify as independent contractors. Critics say it could reclassify thousands of truck drivers as employees, disrupting port operations and supply chains.
Attorney Richard Reibstein warned the changes would create a 'hostile and unworkable legal environment,' potentially driving freelancers and IC-reliant businesses out of the state.
The ABC test includes three prongs: A (freedom from control), B (work outside the employer's usual business), and C (operation of an independent business). The B prong is especially contentious for trucking, as it may disqualify owner-operators who haul freight for carriers.
Democratic Sen. Angela McKnight voiced opposition, noting that 75 per cent of New Jersey truckers are ICs and reclassification could lead to relocation, supply chain issues, and higher consumer costs.
The rulemaking process is nearly complete, with no further hearings scheduled. The final rule could be implemented by the Department of Labor without legislative approval.
SeaNews Turkey
