From JDSupra, Denise Merna Dadika, Gianna Dano, and Eric Emanuelson Jr. discuss possible changes to New Jersey laws for 2026 including proposed legislation that would invalidate the regulations proposed by the New Jersey Department of Labor and Workforce Development (NJDOL). Denise, Gianna, and Eric write:
Pending Legislation That Could Shape 2026
As 2026 approaches, there are two legislative developments worth monitoring:
- ABC Test: The fate of proposed rules aimed at preventing employee misclassification remains uncertain as the new year approaches, following lawmakers’ December action challenging the regulatory changes. On May 5, 2025, NJDOL proposed new regulations to codify the application of the statutory “ABC test” for determining independent contractor status across various state laws, including the Unemployment Compensation Law, Temporary Disability Benefits Law, Wage and Hour Law, WPL, and Earned Sick Leave Law. NJDOL’s proposed regulations were in direct response to the New Jersey Supreme Court’s decision in East Bay Drywall, LLC v. Dep’t of Labor and Workforce Development, which suggested that the state clarify the test, especially in the context of remote work. However, on December 8, 2025, the New Jersey Legislature introduced Assembly Concurrent Resolution 177 (ACR177), asserting that NJDOL’s proposed regulations conflict with legislative intent and should be amended or withdrawn.