A rule proposed by the New Jersey Department of Labor and Workforce Development (DOLWD) threatens the independent contractor status of many insurance agents and brokers and would improperly classify them as "employees" under state labor laws. Unfortunately, this would also impact consumers in the state, as the independence of licensed insurance and financial professionals allows them to effectively serve their clients by offering products and services from multiple insurance companies and financial institutions.

NAIFA Trustee and NAIFA-New Jersey member Dennis Cuccinelli was recently part of a Zoom meeting with the office of New Jersey Governor Phil Murphey during which he spoke on behalf of the community of financial professionals and opposed the proposed rule. Following the meeting, the DOLWD extended its comment period on the proposal and agreed to a June 23 hearing at which Cuccinelli will testify.

In addition to potential consumer impacts, classifying insurance and financial professionals as "employees" would make little sense because many of them are entrepreneurs who own their practices. NAIFA members are professionals who generally operate their own small businesses. When NAIFA successfully opposed the federal PRO Act in 2021, a survey of association members found that they overwhelmingly opposed attempts to reclassify them as employees. According to the survey:

• Approximately 90% of NAIFA members received income reported on a 1099.
• 94% did not want to be treated as employees for union organizing.
• 95% of those who operated as independent contractors wanted to remain so. 

NAIFA-New Jersey members can use NAIFA's Advocacy Action Center to submit comments to the DOLWD opposing the proposal. (Note: Only residents of New Jersey are eligible to submit comments through the link on the Advocacy Action Center.)