N.J. Gig Work Proposal Revives Doubts for Uber Driver Model (1)

Uber and Lyft drivers are likely to be deemed employees under a New Jersey proposal to clarify the worker classification test it uses in determining whether workers are independent contractors.

The state’s Department of Labor announced the proposed regulation Monday afternoon. A 60-day public comment period will begin May 5. The department has previously accused Lyft Inc. and Uber Technologies Inc. of misclassifying their drivers and reached a $100 million settlement with Uber in 2022.

The proposed regulation could nudge New Jersey closer to imposing one of the strictest worker classification tests in the country, alongside California and Massachusetts, although ...