NJ: Opponents fear bill regulating microtransit service could reduce service

A bill that would regulate microtransit, the use of small on-demand vehicles to service areas NJ Transit doesn’t serve, was hotly debated Monday as opponents said it could harm existing systems and prevent expansion.

Several successful microtransit systems are operating now — Via in Jersey City, Camden Loop in Camden and Go Trenton that uses a ride-share model that allows riders to call by phone or use an app to go places not served by traditional mass transit routes.

But opponents who include some providers of those services said the bill has provisions they contend will increase costs and make it difficult for those services to continue or expand to places such as South Jersey.

In April 2025, Gov. Phil Murphy announced a $5 million grant program to expand microtransit in South Jersey.

A key provision of A 5870 extends wage and other labor protections to microtransit drivers, who are considered contractors without certain benefits, like Uber and Lyft drivers.

Opponents argued it should not be acted on during the current lame-duck session and wanted action delayed to consult with experts and the incoming administration of Gov.-elect Mikie Sherrill, who takes office on Jan. 20.

The Assembly Commerce, Economic Development and Agriculture committee voted 9-3 to release the bill Monday. Those who voted no said it needs to be amended.

The bill must be passed by the full Assembly and State Senate and signed by the governor to become law.

Union officials who support the bill, said microtransit drivers are paid lower wages and lack basic protections such as sick days and unemployment insurance because they are considered contractors and not company employees

“Our main concern and why we feel this bill is so important is that the app-based transportation industry, including micro transit, is one of the most prolific in misclassifying employees as independent contractors, which violates the state’s wage and hours laws,” said Eric Richard, state AFL-CIO legislative affairs coordinator.

That means “these workers receive no unemployment insurance, no workers compensation, no access to employer health care, no minimum wage, no overtime, no paid sick leave,” he said. “App-based drivers are employees under New Jersey’s ABC test.”

That test assumes all workers are employees of a company unless they satisfy three criteria, which has made it harder for app-based transportation companies to claim drivers are independent contractors in New Jersey.

Several representatives of microtransit companies and county and local government officials said the bill will increase the cost to provide the service. Typically microtransit is used by low-income residents who don’t have access to a car.

Go Trenton’s operations will be affected if the bill becomes law, said Max Hendrix of Circuit Transit, which operates Go Trenton’s electric vehicles.

Despite benefits of improved mobility, reduced emissions and improving existing transit ridership, the bill will make it “untenable” for some operators to continue, he said.

“It provides service for residents who are not adequately served by traditional transit,” Hendrix said. “Our concern is this constricts microtransit with a one-size-fits all approach. A program deployed in South Jersey is much different from a program deployed in Trenton.”

Circuit Transit “shares the legislation’s intent” to protect workers, adding that Go Trenton workers are employees.

Others warned microtransit is still evolving and more information is needed before legislation is passed, said Pam Frank, CEO of the nonprofit ChargEVC-NJ that promotes electric vehicle use.

“You don’t want to handicap a baby learning to walk; this is a new exciting service filling in the gaps and is complimentary to public transit,” she said. “There is good stuff in this bill… but let’s not rush it.”

Microtransit destinations typically are not served by traditional NJ Transit routes, such as Camden’s soup kitchen, one of the leading destinations or the Camden Loop, said supporters of that program.

Such places are considered “transit deserts. A criticism of the bill is it tries to define what is a transit desert by how many miles is it from an NJ Transit bus stop.

Two Assemblywomen on the committee said the definition varies dramatically for rural regions of the state that have little to no public transit now.

“Sussex County is 535 square miles of transportation desert,” said Assemblywoman Dawn Fantasia, R- Sussex, who voted against releasing the bill until it’s reviewed and amended.

“North Jersey west of I-287 is a lot like South Jersey.,” she said. “We need to consider the commonalities and what works.”

Assemblywoman Heather Simmonds, D- Gloucester, who also represents Cumberland and Salem counties, agreed, saying “Salem County is 375 square miles, has three bus routes and that’s it.”

“South Jersey is more than Atlantic City and Camden and it’s critical to provide sufficient transportation options,” she said.

Assemblyman William W. Spearman, D- Camden, the committee chairman said the bill is a work in progress and that by working with the bill’s sponsors, the concerns can be addressed.

©2026 Advance Local Media LLC.
Visit nj.com.
Distributed by Tribune Content Agency, LLC.