In February 2023, Governor Phil Murphy enacted the Temporary Workers’ Bill of Rights.[1] This labor law aims to protect temporary workers, who the state identified to be often underpaid and significantly less likely to receive employer-sponsored benefits when compared to permanent workers.[2] The law imposed new requirements on both companies that hire temporary workers and staffing agencies that supply them.[3] Included in the requirements were provisions regarding information disclosures, mandates on compensation and benefits, and prohibitions against retaliations and wage diversion.[4]
Among other requirements, employers are required to provide a minimum of four hours of pay at the agreed upon rate for compensation, even if there is no work available at the worksite.[5] Additionally, staffing companies are required to keep certain records, such as the information for third-party clients, contracts made with third-party clients, and employment notices provided to the temporary laborers.[6] Some portions of the law came into effect in May of this year, while others are scheduled to take effect on August 5, 2023.
However, this past spring, New Jersey Staffing Alliance, a trade association representing staffing companies brought a complaint in the U.S. District Court for the District of New Jersey to halt the law, arguing that it was unlawful and would harm staffing companies operating in New Jersey.[7] One of the main arguments was that certain parts of the law were too vague, making compliance by staffing companies difficult.[8] According to the New Jersey Staffing Alliance, the ambiguity of the law dissuaded staffing companies from hiring temporary workers they would have otherwise considered.[9]
To address these concerns, the State of New Jersey proposed regulations to provide clarity and fill missing gaps in the statute.[10] The federal judge overseeing the case denied the plaintiff’s request for a temporary restraining order and preliminary injunction and held that the proposed regulations adequately clarified the law.[11] Despite the court’s acknowledgement of the law’s complexity and protentional for harm on New Jersey staffing companies, the court deemed the law constitutional.[12] Businesses operating in New Jersey that hire temporary workers should familiarize themselves with the Temporary Workers’ Bill of Rights, review the proposed regulations, and be prepared for potential challenges and impacts on staffing practices.
[1] “Top 8 Takeaways from New Jersey’s Sweeping ‘Temporary Workers’ Bill of Rights’”, Feb. 9, 2023, https://www.fisherphillips.com/en/news-insights/top-8-takeaways-new-jerseys-sweeping-temporary-workers-bill-of-rights.html [Hereinafter Top 8 Takeaways].
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] New Jersey Staffing All. v. Fais, No. 1:23-CV-02494, 2023 WL 4760464, *1 (D.N.J. July 26, 2023).
[8] Id.
[9] Id.
[10] Id. at *3.
[11] Id.
[12] Id.
