Ocean County officials are raising alarms over a proposed New Jersey Department of Labor rule that could force many independent contractors and gig workers to be reclassified as employees.

The proposal would formally adopt the “ABC test,” a stricter standard for determining worker status—one that local leaders say could reshape how thousands of residents earn a living. The change could require businesses to provide payroll taxes, unemployment contributions, and other employee benefits to workers who have long operated independently.

Commissioner Jennifier Bacchione said the rule risks punishing tradespeople, freelancers, and small businesses that rely on flexible work. “The State’s one-size-fits-all rule may hurt the very people it claims to protect,” she said, arguing that many workers choose independence because it fits their lives.

Deputy Director Frank Sadeghi warned that the proposal could upend local business models overnight. “This rule doesn’t just change paperwork, it changes livelihoods,” he said.

County officials also noted that ride-sharing, delivery, and other on-demand services may face higher costs and reduced flexibility. Workers who prefer being contractors—such as parents, retirees, and young people gaining experience—could lose opportunities under the new structure.

Commissioner Robert S. Arace added that independence is essential for many families. “For parents juggling schedules, retirees supplementing income, and young people building experience, flexible work is a necessity, not a loophole.”

The Board of Commissioners is urging the State to pause the rulemaking process and engage in discussions with local businesses and workers, saying a balanced approach must protect workers without destroying the flexibility that drives Ocean County’s economy.