NAIFA-New Jersey Grassroots Involvement Chair Jill Van Nostrand asked the New Jersey Department of Labor and Workforce Development to withdraw a proposed rule that would risk misclassifying thousands of independent contractors in the state, including insurance producers and financial advisors, as employees under state labor law. In a comment letter she submitted on behalf of NAIFA-New Jersey, Van Nostrand wrote that the proposal ignores decades of legal precedent and places unnecessary burdens on highly regulated professionals who are already held to strict compliance standards.

Van Nostrand said the proposal “would have far-reaching consequences,” negatively impacting small business owners, employees, and consumers.  She added:

“The proposal would especially harm New Jersey’s financial services and insurance industries. In these industries alone, the proposal would risk misclassifying thousands of independent contractors as employers. Many of these contractors will retire or relocate in response. The businesses with which they contract may decide to work with fewer contractors or provide fewer services to consumers to reduce legal risk. All these problems and more are documented in publicly available studies demonstrating the consequences of reclassifying independent contractors as employees. By contrast, the Department has provided the public with zero evidence to justify the boilerplate assertions that the proposal will have no adverse economic consequences."

NAIFA believes the proper classification of insurance and financial professionals is crucial to allowing them to maintain their independence and serve the best interests of consumers.

A Financial Advisor Magazine article featured Van Nostrand's comments in an article about the proposal.