08.06.25

NJDOL Faces Pushback Over Independent Contractor Rules

by: Matthew Fazelpoor

New Jersey’s proposed ABC test rules for independent contractor classification are drawing sharp criticism from financial advisors and insurance professionals. The New Jersey Department of Labor (NJDOL) says the rules will clarify existing law and protect misclassified workers, but advisors warn they would upend long-standing distribution models in the insurance and financial services industries. Representatives from Prudential and New York Life testified during a June hearing that reclassification would strip them of autonomy, limit product choice for clients and disrupt service flexibility. Critics argue the proposal misinterprets independence markers and could reduce consumer access to tailored advice. The public comment period closed Aug. 6.

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