15 August 2025, Friday
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A revived push to classify more workers as employees is drawing bipartisan concern over its impact on drayage operations at the Port of New York and New Jersey, reports New York's Journal of Commerce.
New Jersey's Labour Department has concluded a 90-day comment period on a proposed rule requiring employers to use the "ABC" test to determine worker classification.
The ABC test, modeled after California's AB5 law, sets stricter criteria for classifying workers as independent contractors. New Jersey's legislature failed to pass similar legislation in 2019, but the Labour Department revived the effort in May, citing recent court rulings on misclassification.
The proposal has sparked opposition from drayage carriers, who rely on 8,300 independent contractor drivers at the Port of New York and New Jersey.
Lisa Yakomin, president of the Association of Bi-State Motor Carriers, testified in June that the rule would "paralyze the regional supply chain" and bypass legislative authority.
Other port stakeholders, including the Shipping Association of New York and New Jersey and MAPONYNJ (Maritime Association of the Port of New York/New Jersey) warned that the rule would undermine the business model for port trucking and disrupt supply chains.
Labour-aligned groups such as the Economic Policy Institute and Human Rights Watch supported the rule, citing low wages for gig workers in other states.
The final decision rests with Robert Asaro-Angelo, New Jersey's labour commissioner. No timeline has been set, but industry leaders fear the rule could be pushed through during Governor Phil Murphy's lame duck session.
Ms Yakomin said the rule has drawn broader opposition this time, including from Democratic legislators traditionally aligned with labor.
State Senator Angela McKnight warned the rule could have "serious unintended economic consequences" and drive drivers to relocate.
Senator John Burzichelli, who succeeded the original ABC bill sponsor, said constituents view the rule as "detrimental."
