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egislators have intensified their push to halt New Jersey’s controversial independent‑contractor framework by introducing a bill that would carve out real‑estate agents from the classification rules that apply to other sectors. The Department of Labor & Workforce Development is advancing a worker‑classification proposal modeled on a 2019 California statute that, after causing widespread confusion and prompting numerous exemptions, proved detrimental to businesses. NJBIA opposes the plan, arguing it mirrors California’s “Swiss‑cheese” mess, where every profession was forced into a scramble for exemptions from an overzealous freelance crackdown.

    The new measure, S‑4889, introduced on Nov. 20, permits a real‑estate salesperson or broker‑salesperson to earn commissions through an LLC or similar entity without altering the “business affiliation” defined in a written broker agreement. In effect, the language entrenches real‑estate licensees as independent contractors and would curb the ability of agencies like the NJDOL to enforce broader worker‑classification standards.

    This is not the first exemption aimed at shielding professionals from the proposed rules. Senate Bill 4839, filed on Nov. 10, exempts certain finance, insurance, and trucking professionals, while Senate Concurrent Resolution 138 seeks to invalidate the NJDOL proposal as inconsistent with legislative intent.

    “While we would prefer the entire rule to be struck down for being legally flawed, economically unsound, procedurally deficient, and socially regressive, we welcome the bipartisan commitment to halt it,” said Christopher Emigholz, NJBIA’s Chief Government Affairs Officer, on Nov. 14.