During a contentious state legislative hearing Thursday on a bill to address the misclassification of workers in New Jersey, the only thing anyone could seem to agree on is that they really don’t know what it would do.

“I have to tell you, in my 20 years in the Legislature, I’ve never seen a bill this confusing,” state Sen. Linda Greenstein, D-Middlesex, said during the hearing at the Statehouse in Trenton. “And the reason is I’ve heard testimony from good people. ... It sounds very convincing. Then I hear testimony from other people, and it sounds very convincing.”

Nonetheless, the bill cleared the state Senate Labor Committee and now heads to the full Senate.

Freelancers, truck drivers, bakers, wedding photographers and musicians were among the dozens of testifying against the bill (S4204) which would update New Jersey labor laws by expanding the definition of who is an employee versus an independent contractor. It would also ensure that employees are properly paid minimum wage, receive benefits and paid overtime.

Opponents of the bill who filled the room applauded and cheered several speakers. State Sen. Fred Madden, D-Camden, chairman of the committee, reminded the large crowd to keep quiet during the four-hour hearing.

There’s been major pushback on the bill from independent contractors representing a swath of industries who say it will prevent them from finding work and force them to move out of the state. Some freelancers estimate they could lose two-thirds of their income.

But state Senate President Stephen Sweeney argued changes and exemptions were made to protect workers being exploited in the growing ‘gig economy’ and codify regulations to protect workers like freelancers in the future.

“There was some confusion, but the reality is people are overreacting to this. Freelance writers are not impacted by this,” said Sweeney, D-Gloucester.

He said freelancers would have had legitimate concerns if the bill advanced without amendments, which were made to match the state Assembly bill (A5936). He also clarified it’s not the same as a California law that also requires businesses to hire workers as employees instead of independent contractors and has faced mounting criticism.

“What’s happening with independent contractors is, it’s going to an extreme,” Sweeney said. “People have taken advantage of other people. And then you force other businesses playing by the rules that are employing these people, whether they’re drivers or construction workers, to take advantage of the independent contractor law so they can compete. If I don’t have to pay taxes on any of these people, my cost is lower.”

He called it a pro-worker bill that reflects the state labor regulations already in place as they’re interpreted. The AFL-CIO also spoke in support of the bill, calling it a “win-win” for the state.

The classification of workers has been a hot topic, with Gov. Phil Murphy, a Democrat, convening a task force to examine the issue, which found more than $462 million in wages were underreported. And ride-sharing giant Uber was recently hit with a $650 million bill for violating labor laws.

Freelancers and other opponents agree that employers exploiting their workers by intentionally misclassifying them should be held accountable — but the bill has gone too far in their eyes.

“We’re not exploited gig workers. We are successful professionals that choose to run our own businesses and pay our taxes. Don’t sweep us up in a world of employers who are shirking their duties, which we agree is a problem,” said Kim Kavin, a Long Valley-based freelance writer.

Edisson Villacis, a truck driver in Elizabeth, said he will most likely need to move out of New Jersey for work. Nearly 80 percent of port drivers in New Jersey are independent contractors, he said, and trucking companies will go to other states to hire cheaper employees.

Companies and businesses have already started “blacklisting” New Jersey freelancers, Kavin said. She has already lost a client that would have brought in $10,000 in income. Rev.com, a transcription service, stopped accepting New Jersey freelancers in anticipation of the legislation passing.

When Kavin noted the loss of business during her testimony, state Sen. Joseph Lagana, D-Bergen, said he “finds that disappointing.”

Kavin contended that what she found disheartening was the state senators voting to advance the bill, even when the they said in the committee they were confused or called it flawed.

“I’m disappointed that they didn’t vote their conscious,” she said.

Sophie Nieto-Munoz may be reached at snietomunoz@njadvancemedia.com. Follow her at @snietomunoz. Find NJ.com on Facebook.

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