In light of New Jersey’s recent “interpretation” of a U.S. Department of Labor (DOL) rule regarding independent contractors, the Jewish News Syndicate exposes the threat of New Jersey gig economy regulations on local newspapers, including Jewish publications.
The new six-part test shifts the classification of newspaper delivery personnel from independent contractors to full-time employees under W-2 status. This attack by the current administration will have catastrophic consequences for local news outlets.
A recent op-ed by Richard Vezza of the New Jersey Press Association warns of a crisis that threatens increased operational costs and “substantial job losses.” He estimated that the cost increase could be between 86% to 128%–a “crushing financial blow.”
Moshe Kinderlehrer of the New Jersey Jewish Link is experiencing the fallout of such an interpretation firsthand. His publication, which serves the growing Jewish communities in Bergen Country and relies on free distribution to reach readers, is at risk. He stated, “My rate would go from, let’s say, 50 cents per copy to close to 80 cents.” For Moshe, the increase is more than a financial burden; it jeopardizes the existence of his paper.
Looking forward, Kinderlehrer will have to make significant changes to how Jewish Link operates. He says that for 2025, he’s “under threat of having to completely revamp distribution.“
While other states, such as New York or California, have carved out certain exceptions for newspaper delivery and other independent contractor services, New Jersey, under Gov. Phil Murphy, has failed to provide similar protections, leaving Jewish Link and similar local journalism efforts vulnerable. Proposed legislation to create exemptions to the gig economy laws in New Jersey died in committee, illustrating a disturbing neglect of the sector’s needs.
In 2022, when Kinderlehrer learned of New Jersey’s interpretation of the new federal rule, he “was horrified by what he was being told.” Even so, Kinderlehrer expressed determination: “I want to see if I could still survive and make a profit with the crazy-high home delivery costs right now.”
As the Biden administration and the Department of Labor, under Acting Secretary Julie Su, double down on this regulatory overreach, the implications for local news are dire. These policies are harmful, risking the loss of the very platforms that keep communities connected and engaged. The stakes are high – not only for Moshe Kinderlehrer in New Jersey but for independent contractors nationwide, as well as the concept of worker freedom.
