{"id":68692,"date":"2025-08-08T23:15:07","date_gmt":"2025-08-08T23:15:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/68692\/"},"modified":"2025-08-08T23:15:07","modified_gmt":"2025-08-08T23:15:07","slug":"analysis-njs-abc-rules-already-lowering-employment","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/68692\/","title":{"rendered":"Analysis: NJ&#8217;s ABC Rules Already Lowering Employment"},"content":{"rendered":"<p>In an analysis this week on her <a id=\"LPlnk489019\" title=\"Original URL: https:\/\/urldefense.proofpoint.com\/v2\/url?u=https-3A__www.freelancebusting.com_&amp;d=DwMF-g&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=hMCUOjHeg9-BteOZ8KfIh_QbhIEvfAtOn8V6F_5sShg&amp;m=eqS91akbCUWjiFQ-WLYExMJkAgrKPVGhE_NlqgFRBFGBmh0ho5-64UwtDRgAvDuS&amp;s=6GL9wWNpROn6RS2tK05wJjRTKvudyn1SmnwGjvoCVJE&amp;e=. Click or tap if you trust this link.\" href=\"https:\/\/nam12.safelinks.protection.outlook.com\/?url=https%3A%2F%2Furldefense.proofpoint.com%2Fv2%2Furl%3Fu%3Dhttps-3A__www.freelancebusting.com_%26d%3DDwMF-g%26c%3DeuGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM%26r%3DhMCUOjHeg9-BteOZ8KfIh_QbhIEvfAtOn8V6F_5sShg%26m%3DeqS91akbCUWjiFQ-WLYExMJkAgrKPVGhE_NlqgFRBFGBmh0ho5-64UwtDRgAvDuS%26s%3D6GL9wWNpROn6RS2tK05wJjRTKvudyn1SmnwGjvoCVJE%26e%3D&amp;data=05%7C02%7CBConsidine%40njbia.org%7C2c7425ca0a1f45b4c0a408ddd608ba16%7Cb3de0f6787d44c0996594f4ed47e63cb%7C1%7C0%7C638902055215914664%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=6Ox7lYiZcRx4O%2Bqz7ILu2NAOw0BccI6g1GrWcH41WFA%3D&amp;reserved=0\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" data-auth=\"NotApplicable\" data-linkindex=\"0\">freelancebusting.com<\/a> page, Fight for Freelancers co-founder Kim Kavin discussed with economist Liya Palagashvili how the New Jersey\u2019s ABC test to determine if a worker is an independent contractor is already having harmful effects on employment and, in particular, women\u2019s employment in the state.<\/p>\n<p>In a public comment filed in opposition to a New Jersey Department of Labor rule proposal to greatly reduce the number of independent contractors in the state, Palagashvili, with the Mercatus Center at George Mason University, said the state has seen the following between 1995-2024:<\/p>\n<p>a 3.81% decrease in W-2 employment<br \/>\na 10.08% decrease in self-employment<br \/>\na 3.95% decrease in overall employment<\/p>\n<p>Palagashvili also noted that New Jersey\u2019s data also shows gender disparities, writing \u201cwomen&#8217;s traditional W-2 employment declined by 7.40%, while men\u2019s showed no significant change\u2014raising concerns about disproportionate impacts on women following the policy change.<\/p>\n<p>\u201cThis pattern suggests the policy may inadvertently create gender-specific barriers in the labor market while failing to deliver its promised worker protections,\u201d Palagashivili added.<\/p>\n<p>NJDOL&#8217;s proposed rule mirrors a 2019 California rule called Assembly Bill 5. <a href=\"https:\/\/www.mercatus.org\/research\/working-papers\/assessing-impact-worker-reclassification-employment-outcomes-post\" rel=\"nofollow noopener\" target=\"_blank\">Research<\/a> by Palagashvili and her team revealed the following data after AB5 went into effect:<\/p>\n<p>Self-employment decreased by 10.5% on average for affected occupations.<br \/>\nOverall employment decreased by 4.4% on average for affected occupations<\/p>\n<p>To see Kavin\u2019s full conversation with Palagashivili, click\u00a0<a id=\"LPlnk818914\" title=\"Original URL: https:\/\/urldefense.proofpoint.com\/v2\/url?u=https-3A__www.freelancebusting.com_p_overkill-2Deffect&amp;d=DwMF-g&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=hMCUOjHeg9-BteOZ8KfIh_QbhIEvfAtOn8V6F_5sShg&amp;m=eqS91akbCUWjiFQ-WLYExMJkAgrKPVGhE_NlqgFRBFGBmh0ho5-64UwtDRgAvDuS&amp;s=J1TLuaOE_sLJ1hRpGlXzMwzMCUN6TTmJgKapE1aTD-w&amp;e=. Click or tap if you trust this link.\" href=\"https:\/\/nam12.safelinks.protection.outlook.com\/?url=https%3A%2F%2Furldefense.proofpoint.com%2Fv2%2Furl%3Fu%3Dhttps-3A__www.freelancebusting.com_p_overkill-2Deffect%26d%3DDwMF-g%26c%3DeuGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM%26r%3DhMCUOjHeg9-BteOZ8KfIh_QbhIEvfAtOn8V6F_5sShg%26m%3DeqS91akbCUWjiFQ-WLYExMJkAgrKPVGhE_NlqgFRBFGBmh0ho5-64UwtDRgAvDuS%26s%3DJ1TLuaOE_sLJ1hRpGlXzMwzMCUN6TTmJgKapE1aTD-w%26e%3D&amp;data=05%7C02%7CBConsidine%40njbia.org%7C2c7425ca0a1f45b4c0a408ddd608ba16%7Cb3de0f6787d44c0996594f4ed47e63cb%7C1%7C0%7C638902055215940055%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=XZun3QRC%2BGoj2Ohy3wagQ4tsT67FTKuUdx6ZJT%2B63zo%3D&amp;reserved=0\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" data-auth=\"NotApplicable\" data-linkindex=\"1\">here<\/a>.<\/p>\n<p>To see Palagashvili&#8217;s full written comments, click <a href=\"https:\/\/www.mercatus.org\/research\/public-interest-comments\/labor-market-effects-codifying-new-jersey-abc-test\" rel=\"nofollow noopener\" target=\"_blank\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"In an analysis this week on her freelancebusting.com page, Fight for Freelancers co-founder Kim Kavin discussed with economist&hellip;\n","protected":false},"author":2,"featured_media":68693,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[28,134],"class_list":{"0":"post-68692","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-jobs","8":"tag-business","9":"tag-jobs"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/68692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=68692"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/68692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/68693"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=68692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=68692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=68692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}