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New Jersey Finalizes Broad ABC Test Rules for Worker Classification

The rules take effect October 1, tightening how companies can classify contractors.

Overview

  • The New Jersey Department of Labor, which adopted the final ABC Test regulations Tuesday, set October 1, 2026 as the effective date.
  • The rules tell the agency to use one test across unemployment, wage, wage payment, and earned sick leave laws, creating a single playbook for worker status.
  • The final text drops industry-targeted examples and says steps taken solely to follow laws do not count as control under Prong A.
  • Broad readings of Prongs B and C remain, and the agency says a contract, a 1099, a license, or business registration alone will not prove an independent business.
  • Business groups plan legislative fixes and possible court challenges during the 120-day window, prompting employers to audit contractor roles that sit close to core revenue work.