New Jersey's economy depends on people who keep the state moving — gig drivers crossing the George Washington Bridge before sunrise, warehouse crews in Ridgefield and Secaucus lifting freight through long shifts, and contractors who take assignments wherever work is available. For these workers, one unexpected injury can turn into a legal maze where classification decides everything: whether medical bills get paid, whether wage benefits are available, and whether a New Jersey personal injury lawyer or work injury attorney can step in to protect their rights.

This week, state lawmakers took an unusually direct step to stop a major rule change proposed by the Department of Labor — a change they say would misinterpret the state's long-standing ABC test and reshape who counts as an employee. According to filings with the New Jersey Legislature, the proposal presumes employment in situations where contractors have traditionally been recognized as independent, raising concerns for gig drivers, warehouse staff, delivery workers, and anyone whose job relies on flexible scheduling or shift-based labor.

For thousands across Bergen and Hudson Counties, the implications are immediate. A simple reclassification can determine whether an injured worker qualifies for treatment, lost wages, and other benefits that a car accident lawyer or injury attorney depends on when building a claim. And because these rules guide how injuries are handled both on the road and on the job, even small regulatory changes can ripple across the entire workforce.

Below is a clear breakdown of what lawmakers are pushing back against — and why so many New Jersey workers are watching closely.

Source: Business Insurance New Jersey

NJ Lawmakers Challenge Proposed Independent Contractor Rules

On Monday, legislators introduced Assembly Concurrent Resolution 177, triggering New Jersey's constitutional rule-review process. The full resolution available through the NJ Legislature outlines why lawmakers believe the Department of Labor's May 2025 proposal conflicts with legislative intent surrounding the ABC test — the standard used to determine employee status for unemployment benefits, tax treatment, wage protections, and workers’ compensation.

Under this test, a worker is considered an independent contractor only if all three criteria are met:

1. freedom from control,

2. work performed outside the usual course or place of business, and

3. operation of an independently established trade.

Lawmakers argue that the new proposal misapplies and stretches these criteria, expanding employee status far beyond what the statute intends.

If a worker is misclassified and later injured, classification determines whether benefits apply. You can learn more about how claim evaluations work through ourPersonal Injury Claims Process.

Why Lawmakers Say the DOL Went Too Far

Coverage from NJ.com, Patch, and other local outlets highlights several key objections:

1. A Presumption of Employment

The proposed rule reduces the weight of traditional independence markers — such as working for multiple companies, having a professional license, or receiving 1099s — and instead leans toward automatic employee classification.

2. Treating Required Software as Employer Control

The proposal states that digital tools, apps, or required software indicate employer control. Legislators counter that such technology is standard across gig work, logistics, and warehouse operations.

3. Reclassifying Gig Drivers' Vehicles

By treating a driver's personal car as the company's “place of business,” the rule contradicts long-standing case law that has protected rideshare drivers' contractor status.

4. Discounting Liability Insurance

Workers who carry liability insurance — historically a sign of independent business activity — would not receive credit under the new interpretation.

These changes, lawmakers argue, amount to rewriting the ABC test, something only the Legislature has authority to do.

What Happens Next: A Rare Constitutional Review Process

By introducing the resolution, lawmakers activated a rarely used mechanism that allows the Legislature to halt administrative rules they find inconsistent with statutory law.

Once the resolution is transmitted:

• The Department of Labor has 30 days to amend or withdraw the proposal.

• If it refuses, lawmakers may hold a public hearing.

• Following that, they may pass a second concurrent resolution formally invalidating the rules.

According to reporting from Patch and NJ.com, this level of legislative intervention is considered high-stakes and unusual.

Why This Matters for Injured Workers, Drivers & Contractors

Worker classification shapes nearly every aspect of post-injury rights:

• Eligibility for medical treatment

• Access to lost wages

• Ability to file a workers' compensation claim

• Employer responsibility for medical bills

• How a personal injury lawyer or car accident attorney structures a claim when the injury occurs during work

For anyone injured while driving, lifting, transporting, or loading freight, classification determines the benefits available.
You can learn more about compensation categories in our guide to Types of Compensation.

What Workers Should Do Now

Whether you work as a contractor, gig driver, warehouse associate, or shift-based laborer, you should:

• Keep copies of contracts, 1099s, pay stubs, and scheduling records

• Save texts or emails showing who directs your day-to-day duties

• Document whether you provide your own tools or vehicle

• Preserve any communication about routes, app requirements, or workplace policies

If you were injured while working — even if labeled a contractor — you may still qualify for benefits under the ABC test. Our Workers' Compensation page explains how classification affects eligibility.

For help, call (201) 944-9200 or submit an Online form. Hablamos español.

FAQs

Can I still pursue a claim if I'm classified as an independent contractor ?

Yes. Many workers labeled as contractors are legally employees under the ABC test and may qualify for full benefits.

Do these rule changes affect Uber, Lyft, Instacart, DoorDash, or delivery drivers?

Yes. Gig drivers are directly impacted because the proposal redefines their personal vehicles as company “premises.”

How long does the Legislature have to block the rule?

The Department of Labor has 30 days to amend or withdraw the proposal before lawmakers may formally invalidate it through a second resolution.

Why Choose Khorozian Law Group

We represent injured workers, drivers, and families throughout Englewood Cliffs, Ridgefield, Hackensack, Fort Lee, and across Bergen and Hudson Counties. Our team ensures clients receive medical care, wage benefits, and strong legal advocacy during the claims process.

📞 Call (201) 944-9200
📄 Submit an Online form
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