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Mrs. Peel

Attn: NJ Independent Contractors & Businesses Using Them

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If you are (or use) an independent contractor of any type within NJ... I hope you've been following the issue of bill S4204 proposed by Steve Sweeney which seeks to codify a new, narrower definition of "independent contractor".

In a nutshell, (my opinion here) this was generated primarily because of these app-based businesses like Uber. The NJ Dept of Labor recently assessed a $649M fine against Uber for classifying it's drivers as contractors rather than employees - Uber is fighting it. But, I believe this push is not out of "concern for workers" as it's been presented, but is more about greed - a grossly inefficient, overspending state anxiously trying to capture additional revenue, as well as greedy unions who want dues from additional members. 

Here's the problem... whether intentions were noble or, as I believe, just plain greedy... the law seems likely to have sweeping unintended consequences. For instance, large employers might just say - you know what? NJ is just too much of a pain in the ass to deal with. We're not going to hire any more freelancers who live in NJ. Lest you think that's crazy talk, California passed a similar but even stricter law - and sure enough - several large companies that use contractors (for instance, a big transcription company) just simply dropped all California freelancers from their rolls!  The opposition to this bill is growing and varied - coming from individual freelancers, groups that represent them, Chambers of Commerce, AAA (whose roadside services are contracted), the trucking industry, etc. 

If you're a small business that hires contractors, these kinds of laws can complicate your life immeasurably - and you could end up being forced to hire people as employees who you actually only use a handful of times a year for specialty work. (Like a general contractor who brings in a mason to build chimneys on his projects, etc.) 

They just held a hearing on the bill, and there was FOUR hours of pissed off testimony mostly from freelancers and small business owners. Apparently, Sweeney's response is to re-do the bill to  carve out more "exemptions". It seems to me if you get this much push back, and have to carve out a ton of exemptions... perhaps the law is just a dumb idea to begin with? :facepalm:  Personally, I think our state has run up so much debt, and is so desperate for money, we'll be seeing all kinds of overreaching "money grabs" like this in the coming years.

As a freelance writer, I've been following the issue, but I think there may be others on here who would be impacted if this passed... and I couldn't find another thread on it, so I just wanted to alert you.  I've included several links if you want to investigate further. This is an open issue - I don't think it's going away anytime soon!

https://www.washingtonexaminer.com/news/proposed-new-jersey-legislation-threatens-independent-contractors

https://reason.com/2019/11/21/new-jersey-takes-a-swipe-at-the-gig-economy-with-new-independent-contractor-bill/

https://www.njspotlight.com/2019/11/revamping-nj-labor-law-to-protect-workers-in-gig-economy-boost-state-taxes/

https://www.nfib.com/content/nfib-in-my-state/new-jersey/nj-independent-contractor-bill-to-create-turmoil-for-small-biz/

 

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7 minutes ago, Mrs. Peel said:

I agree. But cannibalizing your own residents is not the way to fix that. When will these people learn?

How about running the state more efficiently? I know! Crazy talk!!

I dunno what to say. Pa is easy to get a business license with. But in my situation you still need a nj to pull permits.

the internet destroyed nj. It’s no longer location location location.

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19 minutes ago, Mrs. Peel said:

If you're a small business that hires contractors, these kinds of laws can complicate your life immeasurably - and you could end up being forced to hire people as employees who you actually only use a handful of times a year for specialty work.

That battle has been going on for quite a while, because many employers try to skirt the employee/contractor laws. The state has always tried to make contractors employees, if they are under direct control for their time and schedules by the employer. I can remember many years ago having to battle that when I had my business.

22 minutes ago, Mrs. Peel said:

It seems to me if you get this much push back, and have to carve out a ton of exemptions... perhaps the law is just a dumb idea to begin with?

 Lawmakers, traditionally, aren't the sharpest knives in the drawer. We see this over and over and over..

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Interesting.

The company I work for now is virtually all contractor based, with a world wide workforce.  They would probably need to stop "hiring" in NJ.  I think that's going to be the unintended consequence, instead of complying most businesses will just stop dealing with NJ - and of course only worsen the situation.  Kind of like what happens when forcing an increase in the minimum wage.

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I was a staff photographer for some of the best newspapers in the state. The rewards for my good work?..... Layoff after layoff after layoff.

Since 2013, I have been a freelance photojournalist, working for any and all in the tri-state area. It pays just enough to justify the expense of buying $5000 in new cameras every few years.

This legislation terrifies me. If this goes thru, I am done. Unless they carve out an exemption for journalists...which I find unlikely.

The sad thing is, relocation for us is not doable. My wife works for the NJDEP cleaning up dirty gas stations. It is good, honest work that actually makes NJ cleaner and makes money for the state. We are stuck here because Gov. BigBoy said NJ workers must live in NJ.

I see a name tag in my future.

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I spent years in the newspaper business some in the circulation dept. All carriers are contractors. This law passes forget about getting home delivery of a daily newspaper. Some people do still get one I hear.. Most of the weeklies are mailed.

I know it's a dying business but NJ seems to want to put it out of it's misery faster.

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Having worked in staffing for almost 20 years, I’ve been following this topic for a LONG time.  The main issue is about money that’s lost from people not covering their portion of payroll taxes- about 13% of a persons base comp.

add to that the lose in business insurance revenue and state filings fee it adds up to 100s of millions in lost revenue.   

Im not saying this is a valid reason for the proposed law, but if people just did the lawful thing and reported income properly, scumbags like Sweeney wouldn’t be trying to reach deeper into our pockets.  

the interesting part of this legislation is that it initially started by saying the “freelancers” couldn’t be someone that does or performs the same core work as it’s employees.  Meaning...if you own a photography business you couldn’t hire a freelance photographer since photography the core part of your business.   With all the proposed exceptions, implementing and enforcing it will be next to impossible.

In the end only time will tell where they land with the language/exceptions. Until then, it’s hard to tell how wide spread this will be.  I do know that where I work we are paying a ton of attention to 1099 requests for staffing needs...some are being approved, others are not.

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and now you know why I love working for cash.

8 hours ago, NJSigfan said:

Having worked in staffing for almost 20 years, I’ve been following this topic for a LONG time.  The main issue is about money that’s lost from people not covering their portion of payroll taxes- about 13% of a persons base comp.

add to that the lose in business insurance revenue and state filings fee it adds up to 100s of millions in lost revenue.   

Im not saying this is a valid reason for the proposed law, but if people just did the lawful thing and reported income properly, scumbags like Sweeney wouldn’t be trying to reach deeper into our pockets.  

the interesting part of this legislation is that it initially started by saying the “freelancers” couldn’t be someone that does or performs the same core work as it’s employees.  Meaning...if you own a photography business you couldn’t hire a freelance photographer since photography the core part of your business.   With all the proposed exceptions, implementing and enforcing it will be next to impossible.

In the end only time will tell where they land with the language/exceptions. Until then, it’s hard to tell how wide spread this will be.  I do know that where I work we are paying a ton of attention to 1099 requests for staffing needs...some are being approved, others are not.

Wrong. Scumbags like Sweeney will always try to reach deeper into our pockets.

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