NJ governor’s EO pauses independent contractor factors, other NJDOL proposals

On January 23, 2026, New Jersey Governor Mikie Sherrill issued an Executive Order (EO) affecting numerous proposed regulations and rules that have either been proposed within the past 12 months or remained pending for the last 18 months—i.e., any rules issued in or around June 2024 but not yet formally adopted. She explained that her new administration “should be afforded sufficient opportunity to examine the proposed rules and regulations . . . to ensure they are not inconsistent with the policies and priorities” of her administration.

Although the governor has yet to nominate a commissioner of the New Jersey Department of Labor and Workforce Development (NJDOL), the list of pending regulations affected by the EO includes proposed rules crucial to business operations, including the proposed regulation “codifying” the “ABC Test” for independent contractor classification into the Administrative Code. (Additional proposed rules about pay transparency and domestic workers are also affected. Both were proposed in 2025 but haven’t been adopted.)

Proposed regulation

On May 5, 2025, the NJDOL proposed a rule it claims “codifies” existing case law on independent contractor classification. The proposal was opposed by multiple industries at a June 23, 2025, hearing.