This month’s legal developments include a key case decided in New Jersey that supports a less stringent application of that state’s ABC test for independent contractor (IC) status. In late April 2025, the New Jersey Labor Commissioner proposed regulations that would have made it even more challenging to meet the state’s strict ABC test for IC status. The proposed regulations provoked a firestorm of opposition from stakeholders including freelancers operating as ICs and businesses that rely on ICs as part of their business models. The publisher of this blog filed extensive comments critical of certain aspects of the proposed rule. One of our comments pertained to the manner in which the proposed regulations addressed the second part of the B prong of the ABC test, which we argued was not only contrary to existing New Jersey Supreme Court case law but, as drafted, would “foster the elimination of almost all independent contractors in this State.” Notably, as reported below in our summaries of seven key legal developments last month, an appellate court in New Jersey concurred with the publisher’s view, concluding that the Commissioner’s argument on the B prong was contrary to New Jersey Supreme Court case law. Regardless of whether the Commissioner heeds our comments and the comments of other stakeholders supporting IC status in New Jersey, many companies operating in New Jersey and elsewhere have used a process such as IC Diagnostics (TM) to structure, document, and implement their IC relationships in a manner that enhances compliance with even those laws containing the most stringent tests for IC status.