In our spotlight on business report tonight, fierce pushback over independent contractor rules.

A proposed change to who and what constitutes independent work by the state's Department of Labor has critics speaking out business groups and gig workers say the changes threaten flexibility, income and access that freelancers and others have come to rely on while supporters say the new rules will safeguard the rights and benefits of employees who've been wrongly classified.

Senior correspondent, Brenda Flanagan reports on this final day.

For public input.

You're threatening to wipe out our incomes and careers and you're admitting you'll create no new jobs for us.

Kim Cave is a freelance writer in Caliphon, who's among many of the state's 1.7 million independent contractors alarmed by the Department of Labor's proposed new rule codifying wage and employment law enforcement.

It had impact a wide range of gig workers and it sparked a firestorm of controversy at a public hearing.

One Rutgers analyst described its intent to enforce the law and not play whack-a-mole with employers trying to skirt their employment obligations by hiding behind regulatory uncertainty.

The proposed rule clarifies a three pronged test used to classify workers as either independent or as employees of a company that would then also have to pay them benefits.

The department targets companies that dodge employment laws.

Construction worker Diego Vissero alleges he suffered employer abuse.

We are forced to work in unsafe conditions.

We are constantly facing pressure to work faster and harder without breaks.

We work many hours and don't receive overtime pay or even full pay.

Unscrupulous developers and contractors too often force construction employment into the underground economy, costing the public lost payroll taxes and cutting workers from essential benefits like health care, workers compensation, Social Security and unemployment insurance.

Most unions and workers rights groups support the proposed rule noting it prevents wage theft and creates a level playing field discouraging companies that cut corners to save money.

A Teamster rep said cheating hurts Jersey's trucking industry.

Companies that play by the rules which are often Teamster companies are often driven out of business because of this unfair competition.

Despite that many oppose the proposed rule especially independent contractors who drive their own cars and trucks.

They fear it would designate their vehicles as a place of business forcing them to become regular company employees deprived of flexibility and independence.

DOL proposes that a truck is where the company's business occurs.

That's simply wrong.

The business place of the trucking industry or the highways thoroughfares and turnpikes of America.

He said making them W-2 employees would drive up prices.

For app driven gig workers it's a serious concern.

For example more than 200,000 Jersey residents drove for DoorDash last year, most working about five hours a week a company rep said.

No employer will hire employees let alone 200,000 employees just to put in five hours a week.

That shows how dashing fulfills a need that's different from employment.

New Jersey's Labor Commissioner maintains this rule proposal is a critical step in providing clear reliable guidance to employers to help them comply with the law and prevent the illegal misclassification of employees and that it doesn't change established law.

But business groups disagree.

If it's not broke don't fix it.

This is something that we have been operating under for several years and we want to make sure that we're providing transparent and fair and legal, fair legal practices in New Jersey and this would contravene that by making it more confusing and more difficult.

It disproportionately and negatively affects women, immigrants, people of color and the politically powerless.

The department's proposal stems from Governor Murphy's Labor Task Force recommendations five years ago.

A growing number of Trenton lawmakers on both sides of the aisle now say they're opposed after hearing from frantic constituents and they criticized the Labor Department's rollout.

I have a big problem with that.

Now there's also the possibility that it really is an attempt to destroy the gig economy.

Then we're really gonna have a battle on our hands because that should not be happening here in the last few months of an administration.

Absolutely no call for that.

The public comment period on the proposed rule ends today and the Department of Labor can enact the rule with or without changes.

I'm Brenda Flanagan, NJ Spotlight News.

Support for the Business Report is provided by the Newark Alliance Presents the 2025 Halsey Fest featuring the vibrancy of Newark's Arts and Education District and Halsey Street.

Halsey, a neighborhood built on hustle and heart.

The 2025 Halsey Fest schedule is available at HalseyNWK.com.

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