LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 2782

STATE OF NEW JERSEY

222nd LEGISLATURE

DATED: JUNE 5, 2026

SUMMARY

Synopsis:	Clarifies choice of independent contractor status for certain licensed or regulated professionals.
Type of Impact:	One-time increase in State expenditures.
Agencies Affected:	Department of Labor and Workforce Development.

Office of Legislative Services Estimate

Fiscal Impact	One-Time
State Expenditure Increase	Indeterminate

· The Office of Legislative Services (OLS) finds that the bill may result in an indeterminate small increase in State administrative expenditures to update existing regulations and administrative procedures related to the set of contractor status clarifications prescribed in the bill.

BILL DESCRIPTION

     This bill clarifies that certain licensed or regulated professionals may be treated as independent contractors if they operate under a written agreement that describes the person as an independent contractor.

     The bill applies to the following regulated or licensed professionals:

     (1)  licensed insurance producers;

     (2)  broker-dealers, agents, investment advisers, and investment adviser representatives registered by the New Jersey Bureau of Securities or the federal Securities and Exchange Commission;

     (3)  individuals who operate motor vehicles to deliver or pick up freight from a marine terminal or rail facility and who meet the criteria for exemption under the unemployment compensation law; and

     (4)  individuals who meet the criteria for exemption from the definition of “employment” as defined under current law.

     A person in a profession captured under the bill, who is covered by a written agreement identifying them as an independent contractor is not considered an employee for any purpose under any law, rule, or regulation during the period of the written agreement.  Individuals under the bill are not required to satisfy any additional test to be recognized as an independent contractor under any other law, rule, or regulation, including the State wage payment law and the New Jersey State Wage and Hour Law.

FISCAL ANALYSIS

EXECUTIVE BRANCH

      None received.

OFFICE OF LEGISLATIVE SERVICES

      The OLS finds that the bill may result in an indeterminate small increase in State administrative expenditures to update existing regulations and administrative procedures related to the set of contractor status clarifications prescribed in this bill.  These are likely to be one-time spending events, with few, if any, updates required after initial implementation.

      The bill does not include any penalty provisions or licensing fee requirements.  Any enforcement or licensing activities related to the regulated or licensed professionals will remain unchanged as covered by existing laws or regulations.

Section:	Commerce, Labor and Industry
Analyst:	John Gaudioso Associate Fiscal Analyst
Approved:	Thomas Koenig Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).