Full Measure

Rescinding New Jersey's independent-contractor rule would demonstrate a real commitment to the values Governor Sherrill cites in her plans.

On Friday, New Jersey Governor Mikie Sherrill addressed a who’s who of business and political leaders as the keynote speaker for the New Jersey Business & Industry Association’s 2026 Public Policy Forum.

As reported by New Jersey Business magazine, Governor Sherrill talked about a number of problems she wants to address, including burdensome regulations that make it hard to operate a business in the Garden State.

“We rank 49th in the country as far as business friendliness, and that is not acceptable. … What I hear, again and again, particularly from the business community, is that, in many cases, it is just too hard to do business here. … [We need] to make our cabinet and the different departments work together better, to come together and serve all of you better.”

All of that sounds great—but those of us who live and work in New Jersey have heard similar promises many times before. Sherrill’s predecessor, Governor Phil Murphy, also promised to address things like the state’s high cost of living. Then his administration proposed an independent-contractor rule that attorneys say would make it all but impossible for a lot of us to earn a living in New Jersey at all.

Words are promises. What we need is action.

And in the area of independent-contractor policy, we need a specific action from the Sherrill administration right now: Please, rescind the proposed independent-contractor rule at New Jersey’s Department of Labor & Workforce Development.

Let Us Count the Ways

When Governor Sherrill announced a 90-day pause on rulemaking, she said the reason was to ensure that rules our government imposes will make life easier and more affordable.

The proposed independent-contractor rule does the opposite. It quite literally represents the antithesis of the values she says will guide her administration.

Here’s a look at why.

Making it easier to operate a business

The proposed independent-contractor rule actually goes against this concept in not just one, but two different ways.

First, attorneys say it almost entirely eviscerates the ability to establish independent-contractor status—which means larger businesses looking to hire self-employed people won’t be able to do so without risking government fines. Talk about a way to cripple business growth. Among over 400 publicly traded U.S. organizations, those in the top 25% of year-over-year revenue growth are more likely to embed freelancers (45%) into their workforce strategies. If you want to tank business growth, then limiting the ability to work with independent contractors is a surefire way to do it.

Second, attorneys say the proposed rule poses an existential threat to the individuals who are doing business as independent contractors. That’s people like me—the smallest of small-business owners—whose income would be wiped out if our government makes our existing business relationships illegal. We’d have to move out of the state to keep those business relationships intact.

Destroying all of these business relationships is not making it easier to operate a business of any kind. For independent contractors, it’s the rulemaking equivalent of shutting down an entire entrepreneurial pathway to achieve the American dream.

Photo by Zac Gudakov on Unsplash

Making life easier and more affordable

It’s hard to conceive of any way that life would be easier if my own government wiped out all my business relationships in one regulatory swoop.

I also can’t think of a single way that my life would become more affordable if I suddenly had no income.

You’re no doubt laughing after reading those sentences. Yes, the situation is that ridiculous. It is beyond ludicrous for our elected officials to say they care about making life easier and more affordable if they impose a rule that attorneys say will make it impossible for many us to earn a living at all.

Photo by Towfiqu barbhuiya on Unsplash

Making government accountable

There are about 9,500 written public comments on file about New Jersey’s proposed independent-contractor rule, with 99% of them opposed to the rulemaking. And those comments were filed after a public hearing where testimony was 3-to-1 against the proposal.

It would be hard to conceive of a more clear-cut case of government doing the opposite of what the people want. From musicians to therapists to tow truck operators, countless New Jerseyans have raised our voices and told our government to stop this insanity.

A government that is accountable to the people of New Jersey would have rescinded the proposed independent-contractor rule a long time ago.

The Announcement

On Friday, Governor Sherrill announced the nomination of Kevin Jarvis to serve as New Jersey’s next labor commissioner. I was encouraged that the press release didn’t include the word “misclassification.” That word would have signaled continued hostility toward the business practice of independent contracting in our state.

Instead, Sherrill stated in the release:

“As we look to create more opportunities for New Jerseyans to find great jobs and get ahead, Kevin’s experience will be invaluable in helping us strengthen resources available to our communities.”

For his own part, Jarvis stated in the release:

“New Jersey is the epicenter of innovation, and I look forward to working with Governor Sherrill to cultivate a workforce ready to respond to our evolving employment landscape.”

That language could be read in any number of ways, but there is absolutely room in there to give independent contractors some hope that the new administration may be better than the last one when it comes to self-employment policy.

Governor Sherrill has a terrific opportunity right now to demonstrate that she really will be doing things differently. Rescinding the proposed independent-contractor rule would send a clear and desperately needed message that she sees us and hears us, and that she actually is creating a government that works for us instead of against us.