New Jersey adopts stricter rule to treat gig drivers as employees

After nearly a decade of attempts by left-leaning groups to reclassify gig workers, New Jersey has issued a regulation that will likely treat drivers for platforms such as Uber and Lyft as full-time employees. The Department of Labor and Workforce Development, which began work on the rule during Governor Phil Murphy's tenure, completed it under Governor Mikie Sherrill, citing the state's long-standing one outlet test for worker classification.

While the agency claims the rule merely clarifies existing law, the final text drops earlier examples that would have clearly applied the test to gig firms, suggesting a strategic shift to a stricter interpretation. The regulation follows prior lawsuits against the two companies that resulted in settlements, and mirrors actions in California, Massachusetts, Illinois, Seattle and New York that have imposed higher wages or union rights on gig workers.

Proponents view the rule as a new pathway for reclassification without needing new legislation, whereas opponents warn it could echo the employment declines seen after California's A.B. 5. The development signals renewed momentum for broader gig-worker protections across the nation.