New Jersey Enacts Temporary Workers’ Bill of Rights

On February 6, 2023, New Jersey Gov. Phil Murphy signed the Temporary Workers’ Bill of Rights.

The law’s “equal-pay-equal-benefit” provision requires that temporary workers be paid the same average compensation rate and benefits (or cash equivalent) that is paid to permanent employees.

The law will have significant implications for New Jersey employers and staffing agencies that utilize or place temporary workers. It requires that temporary workers be paid at least the same average compensation rate and equivalent benefits as the third-party client’s permanent employees performing similar tasks requiring equal skill, effort, and responsibility.

Employers with multiple benefit plans will need to determine which category of permanent employees is most analogous to a particular temporary worker’s position in order to determine which benefits package/corresponding value the temporary worker should be offered. Hence, the law is likely to result in logistical and record-keeping issues for staffing agencies and employers who utilize the services of temporary employees.

To ensure compliance, staffing agencies will be required to register with the New Jersey Department of Labor and Workforce Development (DOL), and third-party employers will be barred from utilizing temporary workers through the use of an unregistered staffing agency. The Division of Consumer Affairs (DCA) will oversee enhanced certification requirements for temporary help service firms. Thus, employers who utilize staffing agencies to meet their temporary employee staffing needs will need to ensure that the staffing companies they hire comply with the law.

The law also calls for enforcement actions to fall under the DOL’s purview.