New Jersey may soon force over 1.7 million independent contractors to abandon their self-employed status under a radical reinterpretation of the ABC test, a move critics warn mirrors California’s disastrous Assembly Bill 5. The proposal would tighten classification rules, pushing freelancers and gig workers into union-eligible 9-to-5 jobs.
According to Patrice Onwuka of the Independent Women’s Center for Economic Opportunity, the state’s Department of Labor is replacing a simple three-part ABC test with a complex framework riddled with sub-factors. “Instead of greater clarity, simplicity, and certainty, the NJ Department of Labor is introducing new uncertainty, confusion, and complexity,” Onwuka said.
The proposed regulation threatens self-employed individuals across sectors, from freelance creatives and consultants to rideshare drivers and part-time educators. Onwuka warned that New Jersey is “copycatting” California’s AB5 law, which caused freelance income to collapse across over 600 occupations. Following AB5, California saw a 10.5% drop in self-employment and a 4.4% drop in total employment.
“This is another mass reclassification effort to force people out of preferred flexible work into traditional 9-to-5 jobs, which are unionizable,” Onwuka said. She added that these changes are being pushed through regulation after similar legislation failed in the New Jersey legislature in 2019.
The fallout will especially hit women. Nearly half of the 70 million freelancers nationwide are female. Many rely on flexible, independent work to care for children, elderly parents, or manage health issues. “If women in New Jersey are no longer classified as independent contractors through their small businesses and gigs, many will stop working altogether,” Onwuka warned.
The rule could also hinder entrepreneurship. Onwuka cited women who hire other stay-at-home moms through small businesses and would now be forced to shut down or hire under restrictive employment rules.
Opponents have until August 6 to submit public comments opposing the proposed rule. Independent Women’s Voice has launched an action center to help New Jerseyans tell their stories and challenge the rule before it’s finalized.
Onwuka concluded that this isn’t just about classification. “Americans deserve the freedom to choose when, where, how, and for whom to work. This is worker freedom.”
