New Jersey relies on contractors, gig workers and freelancers. By one American Action Forum estimate, nearly 1.7 million such workers.

But New Jersey has cracked down - state leaders say - to level the playing field. Under guidelines being enforced starting Oct. 1, workers are considered an employee unless the employer can prove certain criteria.

“This is about fairness," said Gov. Mikie Sherrill on News 12's "Ask Governor Sherrill" show. "This is about making sure workers are protected and ensuring that the law reflects that.”

This has been on the state’s radar for years. Uber paid the state Department of Labor $100 million in 2022 after an audit found hundreds of thousands of should-be employees were paid as contractors and denied benefits.

But critics say these guidelines are too broad and could rock the business economy.

“I'm going to give you the example of a freelance writer," said NJBIA President/CEO Michele Siekerka. "I work for 10 different magazines, and I write stories and I get checks. And the result would be, those 10 different companies that I write these stories for would have to consider me a W2 employee for me writing one story for them as a freelance.”

Amateur umpires and referees have also raised concerns. They are independent contractors and say they’d be hurt by this change, with the costs of employment potentially passed on to school districts or little leagues.

“That would make us the only state in America to classify any amateur official as an employee," said John Gallante, of the New Jersey Umpire Alliance.

The governor says it won’t be a radical change, and there is room for exemptions in the Legislature. One bill has already been proposed for amateur umpires.

"If you're an independent contractor today, you'll be an independent contractor tomorrow," said Sherrill.

“You can't have four football officials that work for XYZ High School officiating their home games," said Gallante. "The entire industry is based upon them being independent - basically small businesses themselves. They all work for dozens of different organizations.”