newjerseyglobe.com · David Wildstein · September 8, 2026
Scutari asks Sherrill to delay independent contractor rules until 2027 - New Jersey Globe
Senate President Nicholas P. Scutari at the FY2025 Budget Address, February 27, 2024. (Photo: Kevin Sanders for the New Jersey Globe).
# Scutari asks Sherrill to delay independent contractor rules until 2027
Senate president says “ABC” test regulations could harm workers and businesses
By David Wildstein, September 08 2026 7:57 pm
Senate President Nicholas Scutari is asking Gov. Mikie Sherrill to delay implementing new regulations governing independent contractors, saying the rules are too broad and could seriously affect workers and businesses.
In an August 25 letter to Sherrill, Scutari asked the New Jersey Department of Labor and Workforce Development to postpone the regulations’ effective date from October 1, 2026, to July 1, 2027.
The regulations concern New Jersey’s “ABC” test, which determines whether a worker is properly classified as an independent contractor or should instead be treated as an employee. The test has been a source of controversy among businesses, workers, and labor advocates.
“In less than five weeks, the New Jersey Department of Labor’s ‘ABC’ test regulations become operative,” Scutari stated. “Even after modification upon adoption, we continue to hear concerns that they are too broad and will have a severe adverse impact on workers and businesses.”
The Labor Department initially scheduled the rules to take effect June 1, but delayed implementation by four months to allow time for possible legislative changes.
Scutari said the delay was insufficient for lawmakers to conduct a full review of what he described as an “economy-wide regulation.”
“Unfortunately, the time you initially allotted was too short for the review needed,” he said.
The Senate President called for a comprehensive examination involving the Legislature, workers, labor unions and businesses. He said an additional nine-month delay would be reasonable given concerns raised by independent contractors about their ability to support their families.
The ABC test generally presumes a worker is an employee unless the hiring entity can show the worker is free from control, performs work outside the usual course of the business, and operates an independently established trade or business.
Supporters of stricter enforcement say employers have improperly classified workers as contractors to avoid paying payroll taxes and providing benefits. Business groups and some independent contractors have warned that broad enforcement could eliminate flexible work arrangements and force businesses to change how they operate.
Scutari asked Sherrill to work with the Legislature on a review before the rules take effect. The governor’s office did not immediately announce whether she would support the request.
Editor: David Wildstein - david@njglobe.com
Statehouse Reporter: Joe Seewald - Joe@njglobe.com
Washington, D.C. Reporter: Jonathan D. Salant
General Manager & Advertising: Kevin Sanders - Kevin@njglobe.com