SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 2782

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 4, 2026

      The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 2782.

      As amended, 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 perform motor club services pursuant to a written agreement with a motor club or a third party contracting with a motor club; and

      (4)  individuals who meet the criteria for exemption from the definition of “employment” as defined under R.S.43:21-19(i)(7)(J).

      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, but not limited to, the State wage payment law and the “New Jersey State Wage and Hour Law.”

      The intent of the Legislature is to confirm that professionals such as insurance producers, broker-dealers, investment advisers, and others identified in the bill, when operating under agreements to be independent contractors, have not historically been treated as employees under State law.  This bill enforces that understanding and retroactively applies its provisions to any past agreements regarding that relationship.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.
COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  remove 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 from the provisions of the bill; and

      (2)  include individuals who perform motor club services pursuant to a written agreement with a motor club or a third party contracting with a motor club.

FISCAL IMPACT:

      Fiscal information for this bill is currently unavailable.