New Jersey Legislature Challenges Proposed Independent Contractor Rule, by Christopher Nucifora, Esq., 1-23-2026

Last month, New Jersey legislators took a significant step to challenge proposed changes to the state’s test for determining independent contractor status.

On December 8, lawmakers introduced Assembly Concurrent Resolution 177, which asserts that the New Jersey Department of Labor and Workforce Development’s proposed revisions to the employment-status test exceed the agency’s statutory authority and conflict with legislative intent. The resolution invokes the rule-review mechanism under the New Jersey Constitution, a process that allows the Legislature to invalidate administrative regulations it finds inconsistent with governing statutes.

The Department of Labor’s proposal would have clarified—and in some respects expanded—the application of New Jersey’s existing “ABC test,” which already imposes one of the most stringent independent contractor standards in the country.

For more on the proposed rules, see KD’s detailed blog here.

Next Steps

The resolution gave the Department of Labor and Workforce Development 30 days to amend or withdraw the proposal, which to date, it appears not to have done. It remains unclear whether the Legislature will proceed with a second concurrent resolution to formally bar adoption of the rule.

Kaufman Dolowich will continue to track developments and provide updates as the rule-review process moves forward.

But in the meantime, employers may want to consider the following:

• Continue to assess independent contractor relationships under the current ABC test framework.
• Monitor legislative developments closely.
• Be prepared for potential legislative activity addressing worker classification more directly.

Author: Christopher Nucifora, Co-Managing Partner of Kaufman Dolowich’s New Jersey Office and Chair of the firm’s Commercial Litigation Practice Group