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New Jersey ABC-test rules are now in effect: owner-operators should review contracts and operations

New Jersey's worker-classification regulations became operative Oct. 1. A hiring business must satisfy all three parts of the ABC test to classify a worker as an independent contractor, a standard with practical consequences for trucking companies and leased owner-operators.

UZUzbekCDL Editorial DeskOctober 3, 2026 · 4 minute read
Owner-Operator & LaborUZBEKCDLDAILY DRIVER BRIEF
01

What happened

New Jersey's worker-classification regulations became operative on Oct. 1, 2026. The state Department of Labor says they clarify the statutory ABC test used under the Unemployment Compensation Law, Wage and Hour Law and Wage Payment Law. The hiring business bears the burden of proving all three elements: the worker is free from control or direction; the service is outside the company's usual course of business or outside all its places of business; and the worker is customarily engaged in an independently established trade, occupation, profession or business.

02

What drivers should do

For trucking, the second part can require especially careful review when a carrier's usual business is hauling freight and the same work is performed by leased owner-operators. The rule is a worker-classification standard, not an automatic ban on owner-operators and not an FMCSA change to CDL, operating-authority or lease rules. An LLC, 1099 form, truck title or written independent-contractor label may be relevant, but no single document by itself resolves the full ABC test; the actual working relationship and business operations matter.

03

Why this matters to our community

New Jersey carriers and owner-operators should review the written lease or contractor agreement and actual dispatch practices with a qualified New Jersey employment lawyer or tax professional. Keep proof of a genuinely separate business: entity registration, tax and bank records, invoices, insurance, equipment ownership or lease records, authority where applicable, multiple-customer activity, advertising and the right to accept or reject work. Compare the contract with reality, including who sets routes, schedules, rates, uniforms, equipment rules and termination terms. Do not change payroll or tax treatment based only on a social-media post. Useful English terms include worker classification, independent contractor, employee, hiring entity, burden of proof, control and direction, usual course of business, place of business and independently established trade.