A Win for Workers in New Jersey: Temporary Workers Bill of Rights

New Jersey Temp Workers now have the same rights as Permanent Workers thanks to a new law.

By N.A. Pagliara, Esquire of Pagliara Law Group, P.A. posted in Employment Law Blog on February 19, 2023.

• Staffing Firms and third-party employers in New Jersey now should listen closely as they are now facing greater substantial obligations thanks to the New Jersey Worker’s Bill of Rights
• This will now change the rate and frequency of pay for temporary laborers, giving a win to to them and treat them the same as a permanent worker.
• There will also be new recordkeeping requirements on staffing firms and impose harsh penalties for retaliation

The “Temporary Workers’ Bill of Rights” has been signed into law by New Jersey Governor Phil Murphy on February 6, 2023. This Assembly Bill No. A1474 / S511, also referred to as the Bill of Rights, grants multiple labor and employment protections to a significant number of New Jersey’s temporary workers, which exceed 125,000.

The Bill of Rights is highly consequential, leading to the establishment of new requirements for state registration, pay frequency and information, and record-keeping for “temporary help service firms” that hire “temporary laborers” in “designated classification placements”, either directly or indirectly. Although adhering to these fresh regulations will require significant time and resources, the Bill of Rights has severe penalties for non-compliance. Thus, it will motivate employers to ensure compliance.

The definition of a Temporary Help Service Firm

The Bill of Rights defines “temporary help service firms” (also known as staffing firms or temp agencies) as individuals or entities who run a business that hires individuals directly or indirectly to aid the company’s clients in dealing with temporary, special, or excess workloads. These firms must provide compensation, including wages or salaries to their employees. Additionally, they must carry workers’ compensation insurance and pay federal social security and state and federal unemployment insurance taxes.

Who qualifies as a Temporary Laborer?

The Bill of Rights defines “Temporary laborer” as a worker who actually contracts for employment in a designated classification placement  with a temporary help service firm. 

The definition of a Designated Classification Placement?

“Designated classification placement” means a designation of a temporary laborer by a temporary help service firm to perform work in any of the following occupational categories as designated by the U.S. Department of Labor, Bureau of Labor Statistics (BLS):

• Other Protective Service Workers (Miscellaneous Manufacturers) (33-90000);
• Food Preparation and Serving Related Occupations (35-0000);
• Building and Grounds Cleaning and Maintenance Occupations (37-0000);
• Personal Care and Service Occupations (39-0000);
• Construction Laborers (47-2060);
• Helpers, Construction Trades (47-30000);
• Installation, Maintenance, and Repair Occupations (49-0000);
• Production Occupations (51-0000);
• Transportation and Material Moving Occupations (53-0000); or
• Any successor categories as the BLS may designate.

State compliance

The new law in New Jersey, known as the Temporary Worker Bill of Rights, has several key provisions that aim to protect temporary laborers and promote fair labor practices. The law imposes certification requirements on staffing firms, which must obtain certification from the Director of the Division of Consumer Affairs in the Department of Law and Public Safety to make designated classification placements. The law also requires staffing firms to pay temporary laborers the same average rate of pay and equivalent benefits as permanent employees performing similar work for a third-party client, and prohibits fees for transportation to or from the designated work site.

Temporary Laborers now are protected with changes in Rate of Pay and Frequency of Pay

It seems that the Bill of Rights in New Jersey provides new protections for temporary laborers who are assigned to work for a third-party client through a staffing firm. These protections require that temporary laborers are paid the same average rate of pay and receive equivalent benefits as a permanent employee performing the same or similar work at the third-party client. Staffing firms or their agents are also prohibited from charging a fee to transport temporary laborers to or from the designated work site.

Additionally, the Bill of Rights requires staffing firms to hold daily wages and make biweekly paychecks at the request of temporary workers to avoid unnecessary check-cashing fees. Pay deductions for meals and equipment that would reduce temporary workers’ pay below minimum wage are also prohibited. These new requirements may create issues for staffing firms as they must ensure their payroll processes or software can accommodate multiple payment cycles.

While the Bill of Rights provides important protections for temporary laborers, there may be confusion and issues with implementation due to the lack of guidance on how to calculate the average rate of pay and equivalent benefits. The penalties for failing to comply with these requirements are also significant. Staffing firms will need to carefully review their practices to ensure compliance with these new requirements and avoid potential violations of wage and overtime payment laws.

Changes require a new Recordkeeping Requirement

These new record-keeping and reporting requirements will place a significant burden on staffing firms to ensure compliance with the law. Failure to maintain accurate records or provide required information may subject staffing firms to penalties, fines, or other legal consequences.

• The name of the temporary laborer;
• The staffing firm’s workers’ compensation carrier;
• The nature of the work to be performed by the temporary worker and the wages offered;
• Name and address of the assigned worksite of each temporary laborer;
• Whether a meal or equipment are provided and who provides such; and
• The amount of sick leave to which temporary workers are entitled.

Staffing firms will also be required to keep records related to their sending of one or more persons to work as temporary laborers. The records must include:

• Basic contact information of the temporary laborer;
• Specific qualifications or attributes of a temporary laborer;
• Copies of all contracts and employment notices;
• The amounts of any deductions to be made from each temporary laborers’ compensation; and
• Verification of the actual cost of any equipment or meal charged to a temporary laborer.

Additionally, staffing firms are now mandated to make records related to the number of hours billed to a third-party client available for inspection or copying within five days following a written request by the temporary laborer or their authorized representative.

Lastly, temporary laborers must be provided a detailed, itemized statement on their paycheck stub or on a form approved by the Commissioner listing certain compensation information including rate of pay, total pay period earnings, and number of hours worked at each third-party client during the pay period.

Penalties and Compliance

The Bill of Rights specifies that severe penalties will be imposed if a staffing firm or third-party client retaliates against a temporary laborer for exercising their rights under the law. Retaliation, such as firing or disciplining a temporary laborer within 90 days of exercising their rights, creates a presumption of wrongdoing that can be challenged. This change is expected to result in an increase in legal disputes against staffing firms and third-party clients.

Moreover, if a temporary worker claims unlawful retaliation, they can seek the greater of all available legal or equitable remedies, or receive liquidated damages of $20,000 per incident of retaliation. The temporary worker is also entitled to seek reinstatement, attorneys’ fees, and costs.

Finally, the new law grants individuals a private right of action in Superior Court if they have been wronged by a violation of the Bill of Rights.

Looking Ahead

This is a burden to staffing agencies and third party employers. Understanding the new law that the Bill of Rights places on staffing agencies and third-party employers is vital to ensure compliance with the key requirements. Staffing agencies and any employers that utilize the services of temporary workers are urged to consult with counsel on the ramifications of this new law and how to best navigate the potential obstacles. If you would like advice on compliance or have been sued regarding the new law or if you are an employee that was retaliated against for voicing your rights under the new law. Please contact the experienced and skilled employment attorneys at Pagliara Law Group or at 201-470-4181.

AUTHOR: Nicholas A. Pagliara, Esq. Founder, Chairman of the Board and Managing Attorney of Pagliara Law Group, PA.

Contact Us: Our attorneys represent employees in all matter related to employment and labor law. Call us at (201) 470-4181 or fill out the contact form on this page.  We can help.

Tags and Topics: Employment Law, Third Party Employers, Seasonal Workers, Temporary Workers,Staffing Agencies, NJ Workers Bill of Rights, Equal Pay, Hiring Process, Applicant, See our Labor and Employment Law practice group.