On February 6, 2023, Governor Murphy signed into law the “Temporary Workers’ Bill of Rights” which places obligations on staffing firms by requiring them to pay temporary laborers assigned to work for a third-party client the same average rate of pay and equivalent benefits (or cash equivalent) as a permanent employee performing the same or similar work of third-party client (employer). These provisions are effective on August 5, 2023.
The law is limited to temporary laborers in certain occupations as designated by the U.S. Bureau of Labor Statistics as follows:
- Other Protective Service Workers;
- Food Preparation and Serving Related Occupations;
- Building and Grounds Cleaning and Maintenance Occupations;
- Personal Care and Service Occupations;
- Construction Laborers;
- Helpers, Construction Trades;
- Installation, Maintenance, and Repair Occupations;
- Production Occupations;
- Transportation and Material Moving Occupations; or
- Any successor categories as the Bureau of Labor Statistics may designate.
Staffing agencies will be required to register with the New Jersey Department of Labor and Workforce Development (DOL), and third-party employers will be prohibited from using temporary workers from unregistered staffing firms. The registration is accompanied by an annual $2,000 fee and an additional $750 fee for each branch office or other location where the firm regularly contracts with temporary laborers. Firms that fail to register will be assessed a $5,000 fine for each violation.
Additionally, the law also contains notice, posting and anti-retaliation provisions which take effect on May 7, 2023.
Next Steps for Employers
Employers, which are staffing firms, must familiarize themselves with all of their obligations under this law including ensuring that they: (1) comply with all the notice and posting requirements, (2) implement proper record-keeping and (3) register with the New Jersey DOL.
Employers, who use staffing firms, to fill positions for any of the classifications above will need to align the temporary workers’ assignments with that of their own employee’s roles, compute the average of the amounts earned by their employees and determine the average cash equivalent of their employees’ benefits, and ensure that temporary employees working in the same roles receive at least this amount.
Given the implications that this will have on employers that utilize staffing firms to fulfill their workforce needs, it is recommended that employers consult with legal counsel on these changes.
