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The basics:

• NJ Department of Labor’s independent contractor rule remains under review
• Freelancers, NJBIA, lawmakers and others raise concerns
• Murphy emphasizes public input and ongoing debate

According to Gov. Phil Murphy, no decisions have been made on a new rule proposed by the New Jersey Department of Labor & Workforce Development that would drastically change how independent contractors and gig workers are classified in the state.

NJBIZ has reported on the hot-button issue, which has garnered a lot of attention this summer. A June hearing and the aftermath have led to a passionate debate on the topic. NJBIZ also asked Murphy about it at an event this summer, which you can read more about here.

During his Aug. 21 call-in show on News 12 New Jersey, Murphy was again asked about the situation. Host Eric Landskroner relayed the question from Kim Kavin, a freelance writer and editor, who’s testimony NJBIZ quoted in its Aug. 6 story.

Kavin is also the co-founder of the nonpartisan grassroots coalition Fight for Freelancers, and has been on the frontlines of this fight, in opposition of the proposal.

Turn up the radio

“Governor, we have a question here about a new proposal by the New Jersey Department of Labor – a relatively recent proposal anyway – to change how workers are classified. And in a nutshell, would drastically reduce the number of independent contractors in New Jersey,” said Landskroner.

“So, let’s get to this question here from Kim. Kim posted on X, ‘Nearly two dozen legislators on both sides of the aisle in Trenton have publicly expressed concern about NJDOL’s proposed independent contractor rule, including it being outside of statute and case law.’ Goes on to say, ‘Why won’t the governor rescind this deeply misguided proposal?’”

“This is a proposal – exactly what Kim suggests,” said Murphy, calling it a good question and saying he was planning to have his Chief Policy Advisor Dennis Zeveloff reach out to Kavin. “It’s a proposal. It’s in that process where we’re taking input, basically public input on all sides of this. No decisions have been made yet. It doesn’t mean that we either endorse it or walk away from it.

[T]his is not yet nearly in cement. And that’s a process that will play out over the next few weeks.
— Gov. Phil Murphy

“It’s a good amount of debate – very passionate. But Kim, stay tuned. I’ll ask Dennis to follow up with you to go through the pluses and minuses on both sides of this. But this is not yet nearly in cement. And that’s a process that will play out over the next few weeks.”

This was Governor Murphy’s response live on-air just now to my tweet earlier today: pic.twitter.com/8xXfkNMUhM

— Kim Kavin (@thekimkavin) August 21, 2025

Pros and cons

Landskroner followed up, “As you know the NJBIA – New Jersey Business & Industry Association – is vehemently against this. They argue that this will eliminate flexibility for gig workers/freelancers, increase costs for businesses, potentially harm the economy. Sen. [Jon] Bramnick also weighed in on this. He said that it will drive small business owners out of New Jersey – plain and simple – by misclassifying thousands of independent contractors as employees.”

Murphy continued, “If I didn’t say this already, I’ll say it – the support and opposition is passionate on this one. It’s not just NJBIA or Jon. But you’ve got a lot of the corporates we’ve heard from directly. So, we’ll see. We’ll see where it lands. I’d ask everyone to stay calm; continue to weigh in.”

Landskroner asked, “So, in your mind, what’s the pro for doing this?”

“I don’t want to put my finger on the scale here,” said Murphy. “You’ve had big debates around the country. You’ve had them in New Jersey. This is not the first time we’ve had the question – are you an employee or are you an independent contractor? And the folks who like the employee lane see wage and benefit protection, typically. And the independent contractor lane sees a certain amount of flexibility, which is also understandable.

“Those aren’t the only plusses with either side. But those will give you a sense of some of the sort of headlines. We’ll see where it comes out.”

Kavin posted Aug. 28 that she connected with Murphy’s office to discuss the situation, which you can read about here.

Please stay with NJBIZ for the very latest on this developing story.