Independent Contractor Rule: What Carriers Should Do Now and What to Watch for in 2026

The rules around independent contractors continue to evolve at both the federal and state level. While there is no brand-new law taking effect today, enforcement standards and proposed regulations mean carriers should stay informed and proactive.

What carriers should do right now

First, review how you are currently classifying independent contractors. In New Jersey, the ABC test remains the standard and it is stricter than federal guidance. Even if a worker qualifies as an independent contractor under federal law, that does not automatically mean they qualify under New Jersey law.

Second, make sure your contracts, policies, and day-to-day practices align. Misclassification risk is not just about paperwork. How work is assigned, how schedules are controlled, and whether a contractor is truly operating an independent business all matter.

Third, stay current on federal enforcement trends. While the U.S. Department of Labor is not actively enforcing the 2024 federal independent contractor rule at this time, investigations and private lawsuits may still reference it. Carriers should avoid assuming the rule is “gone” and instead focus on defensible classification practices.

Finally, if your company relies heavily on owner-operators or contractors, this is a good time to consult with legal or HR professionals to review your structure before enforcement tightens again.

What to watch for in 2026

At the federal level, the U.S. Department of Labor has signaled that a new independent contractor rulemaking process is likely. That means revised standards could emerge in 2026 or beyond, potentially changing how contractors are evaluated under federal law.

In New Jersey, proposed regulations aimed at clarifying how the ABC test is applied are still under discussion. There has also been legislative pushback, meaning the final outcome is not yet settled. Any changes could impact enforcement and compliance expectations for carriers operating in the state.

Court decisions will also continue to shape how these rules are applied in real-world cases, especially around misclassification claims.

NJWMA member support

Through our partnership with the Commerce & Industry Association of New Jersey, the New Jersey Warehouse & Movers Association actively monitors legislation and regulatory activity that may affect our industry. We work to keep members informed, advocate where appropriate, and provide updates as rules evolve.

If you have questions about independent contractor classification or want to better understand how upcoming changes may affect your business, reach out to NJWMA leadership. Staying informed now can help avoid costly issues later.