New Jersey ABC Test for 1099 Workers Takes Effect Oct. 1

NewsData.io · United States · Sep 28, 2026

New Jersey begins enforcing its ABC test for worker classification on October 1, requiring that independent contractors meet all three prongs — control, business type, and independent establishment — or be reclassified as employees under state unemployment and wage laws. Business groups, including the NJ Business & Industry Association and State Chamber of Commerce, have asked Gov. Sherrill to delay the rule until July 2027, citing concerns about prong B's impact on gig workers and freelancers. The state's labor commissioner maintains the test is not new policy, though lawmakers are already carving out exemptions for specific occupations. Staffing firms and clients using 1099 contractors in New Jersey should audit their arrangements immediately, as misclassification under the ABC test exposes them to wage, unemployment, and hour-law liability.