The resolution declares that the new rules proposed by the New Jersey Department of Labor and Workforce Development regarding the employment status test for independent contractors are inconsistent with the legislative intent of the existing ABC test established under the unemployment compensation law. The ABC test is designed to determine whether a worker is classified as an employee or an independent contractor based on three specific criteria. The proposed changes, however, introduce factors that could undermine the independence of contractors, such as allowing the consideration of digital application usage as an indicator of employer control and disregarding the significance of obtaining liability insurance as a hallmark of independent work.

As a result, the Legislature has resolved to prohibit the adoption of these proposed rules and has mandated that the Department of Labor and Workforce Development must amend or withdraw them within 30 days of receiving this resolution. If the Department fails to comply, the Legislature retains the authority to invalidate the rules through a subsequent concurrent resolution. This action underscores the Legislature's commitment to maintaining the integrity of the ABC test and ensuring that the criteria for determining employment status remain consistent with its original intent.