New Jersey overregulates its businesses and one of the worst examples is a controversial new rule proposed by the Department of Labor that would classify more independent contractors as regular employees, NJBIA President & CEO Michele Siekerka said on the legal podcast “Jersey Justice.”

“Basically, it’s going to put gig workers out of work,” Siekerka told podcast hosts Gerald Clark and Mark Morris, attorneys with the Monmouth County-based Clark Law Firm PC. “We want to preserve a worker’s right to be a gig worker and work for multiple employers.”

While it’s important for workers to be properly classified, the proposed regulation goes too far, sweeping in many independent contractors who prefer the flexibility of setting their own schedule and workload, Siekerka said. The proposed rule, which mirrors a failed 2019 bill that couldn’t muster approval by the Legislature, affects businesses and workers in a wide range of industries, she said.

“Take independent truck drivers who work for multiple companies,” she said. “When there is a spike in the season like Christmas, with everything coming out of the ports, they can get extra work. They decide to get their own rig for their own reasons. They don’t want to be part of a big company.

Should this DOL rule be adopted, “they will be put out of work because the type of work they do could be classified as an employee,” Siekerka said. “The burdens of getting through this, from the employers’ side, and the fact that employees can’t choose how they want to work, is not fair for both sides.”

Go here to watch the podcast’s wide-ranging discussion on business issues, including the impact of the federal immigration crackdown on the agriculture, tourism and construction industries in New Jersey, the challenges that legalized cannabis presents for employers, wage transparency laws, the impact of federal tariffs on Garden State manufacturers and more.