NJBIA President and CEO Michele Siekerka said on May 12 that the Legislature faces significant challenges in attempting to overturn or alter the recently adopted independent contractor rule by the Sherrill administration. Speaking on Bill Spadea’s morning radio show, Siekerka addressed what steps might follow after extensive committee testimony from freelance workers, businesses, and union representatives.
The issue is important because the new rule makes it more difficult for individuals to be classified as independent contractors in New Jersey. This affects a large number of workers and businesses across the state. The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association, representing employers across various sectors, according to the official website.
“Our message is and has been that this (rule) is oversweeping and what we need right now is the Legislature to do is step in and nullify, invalidate, just knock these rules right out,” Siekerka said. “But I’m going be honest – that’s going to be very difficult. That’s like the Legislature coming in and just kind of overruling the governor right now, and these folks are still figuring out their relationship.”
Over the past year, NJBIA has opposed changes to criteria determining whether a person qualifies as a freelancer or an employee under what’s known as the ABC test. After thousands commented against last year’s proposal from Governor Murphy’s administration—9,500 comments according to testimony—legislators introduced bills stating that such rules would not align with legislative intent if adopted. Twenty-four legislators from both parties also urged state officials not to proceed with changes.
Siekerka praised lawmakers for holding discussions shortly after adoption of the rule but called for further debate supported by data about misclassification concerns raised by both labor officials and unions during Monday’s hearing. She referenced NJDOL Commissioner Kevin Jarvis’ statement that 1,400 gig workers applied for unemployment benefits over two years but pointed out advocacy voices who say this number does not justify broad policy shifts: “We live in a state with 1.7 million independent contractors,” freelancer advocate Kim Kavin said. “Making any policy on 700 claims that may or may not be valid, is ridiculous.”
Siekerka agreed with Kavin’s concerns about sweeping regulations: “Look, if we want to go about for some solution about misclassification, let’s understand…where is misclassification happening…So why have this broad test that sweeps everybody in…Let’s have an honest discussion about how we can figure out who’s truly misclassifying…” She also echoed calls for New Jersey to consider reverting back to using federal IRS tests many other states use when determining worker status: “With these rules right now, the burden on the employer to show that someone’s an independent contractor is almost impossible,” Siekerka said.
The New Jersey Business and Industry Association advances competitive excellence while providing essential information services; it facilitates partnerships among businesses, government entities, and academic institutions; it offers advocacy along with practical information supporting business prosperity throughout New Jersey—all according to its official website.
Michele Siekerka serves as president and chief executive officer of NJBIA according to its official website.
