Controversial NJ independent contractor test regulations take effect

New regulations codify decades of case law over the state test used to classify employees. They've faced opposition from business groups who say they create uncertainty.

By: Nikita Biryukov

Outlets: New Jersey Monitor

Published: October 1, 2026

Words: 436

Last Updated: 2 weeks, 3 days ago

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New regulations interpreting a test the state uses to weigh whether a worker is an employee or an independent contractor went into effect Thursday over the objections of business groups and New Jersey’s Senate president.

The department has said the new regulations codify decades of case law governing the three-pronged ABC test, while business groups and some lawmakers have worried it would change some workers’ classifications.

“This is a rule that …

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