New Jersey independent contractor regulation with ABC test is in effect

The New Jersey independent contractor law, which took effect on Thursday, implemented the ABC test for determining independent contractor status. Business associations across New Jersey criticized the regulation, including trucking-related groups, but an attorney specializing in IC law, Richard Reibstein, noted that the final regulation is more moderate than the initial proposal.

While the ABC test does have slightly different verbatim definitions in different states, it generally requires three standards to be met: the worker must be free from control and direction, the work must be outside the usual course of the hiring company's business, and the worker must be customarily engaged in an independent trade, occupation, profession, or business.

New Jersey's regulation, which applies to all industries, does not have any carve-outs for particular industries. The New Jersey Business & Industry Association, in a statement, criticized the new regulation, calling for a delay in implementation and emphasizing the need for a clear, consistent, and workable standard that applies fairly across the economy.