For Immediate Release: May 6, 2026
TRENTON, N.J. – In response to Governor Sherrill’s adoption of new worker classification regulations tied to New Jersey’s “ABC test,” Jersey1st, the New Jersey Policy Institute, and Americans for Prosperity–New Jersey issued the following joint statement:
“Governor Sherrill’s decision to move forward with this sweeping worker classification rule is deeply concerning for the hundreds of thousands of independent contractors who rely on flexibility, autonomy, and entrepreneurship to earn a living.
“While the state claims these regulations simply ‘clarify’ existing law, the reality is that the ABC test already sets one of the strictest standards in the nation, presuming workers are employees unless all three prongs are met. By layering on additional regulatory interpretation, the state risks further blurring the line between independent work and traditional employment in a way that could force many freelancers, gig workers, and small businesses into arrangements they neither want nor need.
This rule comes despite significant concern raised during the public comment process, with over 9500 New Jerseyans officially registering their opposition. Moreover, there continues to be ongoing debate among policymakers, businesses, and workers about its impact on the future of freelance and gig work in New Jersey.
At a time when more New Jerseyans are choosing independent work — whether as drivers, consultants, creatives, or tradespeople — this approach threatens to limit opportunity, reduce income potential, and eliminate flexible work options that many families depend on.
We are particularly concerned that this rule will disproportionately impact small businesses and sole proprietors who lack the resources to navigate complex compliance requirements, potentially forcing them to scale back operations or relocate to more business-friendly states.
Rather than expanding economic opportunity, these regulations risk undermining innovation and pushing independent workers out of the workforce altogether.
We urge state leaders to reconsider this approach and work collaboratively with stakeholders to protect both workers and the flexibility that defines today’s modern economy. New Jersey should be a place where independent contractors can thrive, not a state that regulates them out of existence.”
