New Jersey Administrative Code 
Title 12. Labor and Workforce Development
Chapter 11. Abc Test; Independent Contractors (Refs & Annos)
Subchapter 1. Application of the Abc Test Rules (Refs & Annos)
N.J.A.C. 12:11–1.1
12:11–1.1 Purpose and scope
Effective: June 1, 2026
Currentness

(a) The purpose of this chapter is to delineate the manner in which N.J.S.A. 43:21–19(i)(6)(A), (B), and (C), commonly referred to as the “ABC test,” shall be applied to the question of independent contractor status.

(b) This chapter shall be applied when interpreting each statute and each Department of Labor and Workforce Development rule where the issue of independent contractor status is determined based on an application of the ABC test, including, but not limited to, the Unemployment Compensation Law, N.J.S.A. 43:21–1 et seq., the Temporary Disability Benefits Law, 43:21–25 et seq., the Wage Payment Law, 34:11–4.1 et seq., the Wage and Hour Law, 34:11–56a1 et seq., the Earned Sick Leave Law, 34:11D–1 et seq., and the Call Center Jobs Act, 34:21–8 et seq.

(c) Nothing in this chapter should be construed to alter or eliminate statutory exemptions from coverage under, or exemptions from the requirements of, the individual statutes listed at (b) above. Following are examples of such statutory exemptions:

1. The exemptions at N.J.S.A. 43:21–19(i)(7), 43:21–19(i)(9), and 43:21–19(i)(10), from covered “employment” within the Unemployment Compensation Law and Temporary Disability Benefits Law;

2. The exemptions at N.J.S.A. 34:11–56a4 from the requirement within the Wage and Hour Law that an employer pay each employee not less than 1 ½ times an employee’s regular hourly rate for each hour worked in excess of 40 in a workweek, for any individual employed in a bona fide executive, administrative, or professional capacity; employees engaged to labor on a farm or employed in a hotel; or to an employee of a common carrier of passengers by motor bus; or to a limousine driver who is an employee of an employer engaged in the business of operating limousines; or to employees engaged in labor relative to the raising or care of livestock;

3. The exemptions at N.J.S.A. 34:11–56a4 from the requirement within the Wage and Hour Law that each employer pay to each of its employees no less than the required minimum hourly wage, for persons under the age of 18 not possessing a special vocational school graduate permit issued pursuant to N.J.S.A. 34:2–21.15, or to persons employed in the sales of motor vehicles, or to persons employed in outside sales, or to persons employed in a volunteer capacity and receiving only incidental benefits at a county or other agricultural fair by a nonprofit or religious corporation or a nonprofit or religious association which conducts or participates in that fair; and

4. The exemptions at N.J.S.A. 34:11D–1 from the definition of covered “employee” within the Earned Sick Leave Law for an employee performing a service in the construction industry that is under contract pursuant to a collective bargaining agreement, or for a public employee who is provided with sick leave with full pay pursuant to any other law or rule of the State.

Credits

Adopted by 58 N.J.R. 1587(a) R.2026 d.073, effective June 1, 2026 (operative October 1, 2026).
 
CHAPTER EXPIRATION DATE

<Chapter 11, ABC Test; Independent Contractors, expires on June 1, 2033.>
 
Current through amendments included in the New Jersey Register, Volume 58, Issue 15, dated August 3, 2026. Some sections may be more current, see credits for details
N.J.A.C. 12:11–1.1, NJ ADC 12:11–1.1
End of Document
	© 2026 Thomson Reuters. No claim to original U.S. Government Works.

New Jersey Administrative Code 
Title 12. Labor and Workforce Development
Chapter 11. Abc Test; Independent Contractors (Refs & Annos)
Subchapter 1. Application of the Abc Test Rules (Refs & Annos)
N.J.A.C. 12:11–1.2
12:11–1.2 Burden of proof
Effective: June 1, 2026
Currentness

(a) The burden of proof to establish independent contractor status, pursuant to the ABC test, is on the putative employer.

(b) As the ABC test is written in the conjunctive, in order for the putative employer to meet its burden pursuant to the ABC test, the putative employer must establish that the services at issue, and the individual providing those services, meet all three prongs of the ABC test - Prong A, Prong B, and Prong C.

Credits

Adopted by 58 N.J.R. 1587(a) R.2026 d.073, effective June 1, 2026 (operative October 1, 2026).
 
CHAPTER EXPIRATION DATE

<Chapter 11, ABC Test; Independent Contractors, expires on June 1, 2033.>
 
Current through amendments included in the New Jersey Register, Volume 58, Issue 15, dated August 3, 2026. Some sections may be more current, see credits for details
N.J.A.C. 12:11–1.2, NJ ADC 12:11–1.2
End of Document
	© 2026 Thomson Reuters. No claim to original U.S. Government Works.

New Jersey Administrative Code 
Title 12. Labor and Workforce Development
Chapter 11. Abc Test; Independent Contractors (Refs & Annos)
Subchapter 1. Application of the Abc Test Rules (Refs & Annos)
N.J.A.C. 12:11–1.3
12:11–1.3 Prong A of the ABC test
Effective: June 1, 2026
Currentness

(a) In order for the putative employer to meet its burden under Prong A of the ABC test, the putative employer must establish that it does not exercise control or direction over the individual’s work in fact, and that it does not reserve the right to control or direct the individual’s work.

(b) The putative employer need not control every facet of a person’s work for that person to be an employee.

(c) The following factors are among those that shall be considered when evaluating whether an individual has been, and will continue to be, free from control or direction under Prong A of the ABC test:

1. Whether the individual is required to work any set hours or jobs;

2. Whether the putative employer has the right to control the details and means by which the services are performed by the individual.

i. The following sub-factors may be considered when determining whether the putative employer has exercised control over the details and means by which the services are performed by the individual. It is intended to be illustrative and is not exhaustive.

(1) Whether the putative employer requires the individual to use specific tools, supplies, or materials;

(2) Whether the putative employer requires the individual to wear a uniform or to don or display a specific logo, color(s), or other insignia; and

(3) Whether the putative employer requires the individual to report on any aspect of the individual’s services at prescribed times or intervals;

3. Whether the services must be rendered by the individual personally;

4. Whether the putative employer negotiates for and acquires the services performed by the individual;

5. Whether the individual’s rate of pay is fixed by the putative employer;

6. Whether the individual bears any risk of loss for services performed;

7. Whether the individual is required to be on call, on standby, or otherwise available to perform services at set times determined by the putative employer, even if the individual does not actually perform services at such times;

8. Whether the putative employer limits the individual’s performance of services for other parties, such as by limiting the individual’s geographic area or potential clientele; and

9. Whether the putative employer provides training to the individual.

(d) The factors listed at (c) above are not exhaustive and additional factors may be considered.

(e) The factors listed at (c) above shall not be used as a checklist; that is, a conclusion that the putative employer has met Prong A of the ABC test shall not be based on whether a majority of the factors listed at (c) above have been met. There is no set number of factors that will, in every instance, result in a finding that the putative employer either has or has not met its burden under Prong A of the ABC test. Some factors may be relevant in one situation and may not be relevant in another. What is required under Prong A of the ABC test is to evaluate the entire relationship between the individual and the putative employer and to determine whether the individual has been, and will continue to be, free from control or direction by the putative employer.

(f) Actions taken by a putative employer solely to comply with Federal, State, or local laws or regulations shall not, standing alone, be considered evidence of control or direction under Prong A.

Credits

Adopted by 58 N.J.R. 1587(a) R.2026 d.073, effective June 1, 2026 (operative October 1, 2026).
 
CHAPTER EXPIRATION DATE

<Chapter 11, ABC Test; Independent Contractors, expires on June 1, 2033.>
 
Current through amendments included in the New Jersey Register, Volume 58, Issue 15, dated August 3, 2026. Some sections may be more current, see credits for details
N.J.A.C. 12:11–1.3, NJ ADC 12:11–1.3
End of Document
	© 2026 Thomson Reuters. No claim to original U.S. Government Works.

New Jersey Administrative Code 
Title 12. Labor and Workforce Development
Chapter 11. Abc Test; Independent Contractors (Refs & Annos)
Subchapter 1. Application of the Abc Test Rules (Refs & Annos)
N.J.A.C. 12:11–1.4
12:11–1.4 Prong B of the ABC test
Effective: June 1, 2026
Currentness

(a) In order to meet its burden under Prong B of the ABC test, the putative employer must establish either that an individual’s services are outside of the putative employer’s usual course of business or that such services are performed outside of all of the putative employer’s places of business.

(b) The putative employer’s usual course of business may include activities that the putative employer regularly engages in to generate revenue or develop, produce, sell, market, or provide goods or services. An entity may have more than one usual course of business.

(c) When evaluating whether services are performed outside of all the places of business of the enterprise for which such service was performed, the phrase “places of business” refers to locations where the enterprise has a physical plant or conducts an integral part of its business.

(d) The locations where the putative employer has a physical plant include, but are not limited to, a physical office, store, or factory; where a substantial amount of the putative employer’s work is performed.

(e) An individual’s personal residence where they perform remote work, that is, performing services from a location other than a location operated by the putative employer, shall not be considered among the putative employer’s places of business.

Credits

Adopted by 58 N.J.R. 1587(a) R.2026 d.073, effective June 1, 2026 (operative October 1, 2026).
 
CHAPTER EXPIRATION DATE

<Chapter 11, ABC Test; Independent Contractors, expires on June 1, 2033.>
 
Current through amendments included in the New Jersey Register, Volume 58, Issue 15, dated August 3, 2026. Some sections may be more current, see credits for details
N.J.A.C. 12:11–1.4, NJ ADC 12:11–1.4
End of Document
	© 2026 Thomson Reuters. No claim to original U.S. Government Works.

New Jersey Administrative Code 
Title 12. Labor and Workforce Development
Chapter 11. Abc Test; Independent Contractors (Refs & Annos)
Subchapter 1. Application of the Abc Test Rules (Refs & Annos)
N.J.A.C. 12:11–1.5
12:11–1.5 Prong C of the ABC test
Effective: June 1, 2026
Currentness

(a) In order to meet its burden under Prong C of the ABC test, the putative employer must establish that an individual is customarily engaged in an independently established trade, occupation, profession, or business.

(b) The following factors are among those that shall be considered when evaluating whether an individual is customarily engaged in an independently established trade, occupation, profession, or business, under Prong C of the ABC test:

1. The duration, strength, and viability of the individual’s business (independent of the putative employer);

2. The number of customers of the individual’s business and the volume of business from each respective customer;

3. The amount of remuneration the individual receives from the putative employer compared to the amount of remuneration the individual receives from others in the same industry;

4. The number of employees of the individual’s business;

5. The extent of the individual’s investment in their own tools, equipment, vehicles, buildings, infrastructure, and other resources;

6. Whether the individual sets their own rate of pay; and

7. Whether the individual advertises, maintains a visible business location, and is available to work in the relevant market.

(c) The factors listed at (b) above are not exhaustive and additional factors may be considered.

(d) The factors listed at (b) above shall not be used as a checklist; that is, a conclusion that the putative employer has met Prong C of the ABC test shall not be based on whether a majority of the factors listed at (b) above have been met. There is no set number of factors that will, in every instance, result in a finding that the putative employer either has or has not met its burden under Prong C of the ABC test. Some factors may be relevant in one situation and may not be relevant in another. What is required under Prong C of the ABC test is to evaluate the totality of the facts, including, but not limited to, the entire relationship between the individual and the putative employer, and to determine whether the individual is customarily engaged in an independently established trade, occupation, profession, or business.

(e) In order to meet its burden under Prong C of the ABC test, the putative employer must establish that an individual’s independently established trade, occupation, profession, or business, is an enterprise that exists and can continue to exist independent of, and apart from, the particular service relationship with the putative employer; that is, the enterprise must be stable and lasting and able to survive the termination of the relationship with the putative employer.

1. An individual having multiple employers does not equate to an individual having an independently established trade, occupation, profession, or business sufficient to meet Prong C.

2. Working full-time or part-time for an entity or individual other than the putative employer does not alone equate to an individual being customarily engaged in an independently established trade, occupation, profession, or business sufficient to meet Prong C.

3. Licensure in an occupation or profession, such as a nurse or attorney, is not alone sufficient to meet Prong C.

(f) Proof of business registration, including the establishment of a sole proprietorship, a limited liability company, or a corporation, by the individual performing a service for the putative employer, is not alone sufficient to meet Prong C.

1. The existence of a business entity, without more, may suggest a business in name only and does not suggest independent contractor status.

2. Where the putative employer requires or encourages the individual to establish a business entity, this may suggest a business in name only and does not suggest independent contractor status.

(g) Proof that the individual performing services for the putative employer has their own liability insurance and/or workers’ compensation insurance, is not alone sufficient to meet Prong C. Where the putative employer requires or encourages the individual to obtain such insurance, the existence of such insurance does not suggest independent contractor status.

Credits

Adopted by 58 N.J.R. 1587(a) R.2026 d.073, effective June 1, 2026 (operative October 1, 2026).
 
CHAPTER EXPIRATION DATE

<Chapter 11, ABC Test; Independent Contractors, expires on June 1, 2033.>
 
Current through amendments included in the New Jersey Register, Volume 58, Issue 15, dated August 3, 2026. Some sections may be more current, see credits for details
N.J.A.C. 12:11–1.5, NJ ADC 12:11–1.5
End of Document
	© 2026 Thomson Reuters. No claim to original U.S. Government Works.

New Jersey Administrative Code 
Title 12. Labor and Workforce Development
Chapter 11. Abc Test; Independent Contractors (Refs & Annos)
Subchapter 1. Application of the Abc Test Rules (Refs & Annos)
N.J.A.C. 12:11–1.6
12:11–1.6 Additional principles governing application of the ABC test
Effective: June 1, 2026
Currentness

(a) The question of independent contractor status is determined based on an evaluation of the facts surrounding the relationship between the putative employer and the individual providing the services and the application of the ABC test to those facts.

(b) One cannot transform into an independent contractor who would otherwise be considered an employee, by reporting the earnings of that individual using a Federal Form 1099, as opposed to a Federal Form W-2.

(c) A written or oral contract or agreement labeling an individual as an independent contractor is not dispositive of whether an individual is an independent contractor pursuant to the ABC test.

1. When determining the weight given to an alleged independent contractor agreement, the following factors may be considered, among others:

i. Whether either the putative employer or the individual is the primary or unilateral drafter of the alleged independent contractor agreement;

ii. Whether material terms of the alleged independent contractor agreement are negotiable or it is a contract of adhesion;

iii. Whether the putative employer reserves the right to unilaterally modify any term of the alleged independent contractor agreement or the conditions of service during the term of the agreement; and

iv. Whether either the putative employer or the individual may terminate the alleged independent contractor agreement or the relationship at any time during the term of the agreement.

(d) The fact that an individual would not qualify for receipt of unemployment compensation benefits based on their earnings is not relevant to the question of whether such individual is an independent contractor pursuant to the ABC test. Likewise, that an individual would not qualify for receipt of unemployment compensation benefits based on their earnings solely from the putative employer also does not impact whether such individual is an independent contractor pursuant to the ABC test.

Credits

Adopted by 58 N.J.R. 1587(a) R.2026 d.073, effective June 1, 2026 (operative October 1, 2026).
 
CHAPTER EXPIRATION DATE

<Chapter 11, ABC Test; Independent Contractors, expires on June 1, 2033.>
 
Current through amendments included in the New Jersey Register, Volume 58, Issue 15, dated August 3, 2026. Some sections may be more current, see credits for details
N.J.A.C. 12:11–1.6, NJ ADC 12:11–1.6
End of Document
	© 2026 Thomson Reuters. No claim to original U.S. Government Works.