Employers in New Jersey may be impacted by new labor laws that affect their operations, like the New Jersey Temporary Workers’ Bill of Rights. Gov. Phil Murphy signed this bill into law on February 6, 2023, which may change how your workplace functions.
The law aims to provide temporary workers the same pay, benefits, and protections as permanent employees. It impacts temporary help service firms and the companies that hire temporary workers.
Here’s what the law means for New Jersey employers and how Mosey can help with state compliance.
What Is the New Jersey Temporary Workers’ Bill of Rights?
The Temporary Workers’ Bill of Rights was created to protect temporary workers in New Jersey by ensuring they receive fair wages and benefits. This law is part of a broader effort to reduce the exploitation of temporary workers, who often receive lower pay and fewer benefits than their permanent counterparts.
The law covers several key areas, including equal pay, wage notices, and new requirements for hiring temporary workers through temporary help service firms. It also introduces stiff penalties for non-compliance, which can be costly for employers that rely on temp labor.
What Does the Temporary Workers’ Bill of Rights Do?
The New Jersey Temporary Workers’ Bill of Rights provides protections in several areas:
- Equal Pay: Temporary workers must be paid the same rate as permanent employees who do similar work.
- Equal Benefits: Temporary workers must receive the same benefits or a cash equivalent for benefits provided to permanent employees.
- Guaranteed Pay: Even if a temporary worker shows up to a job and no work is available, they are guaranteed a minimum of four hours of pay.
- Detailed Wage Notices: Employers must provide clear, written wage notices in the worker’s preferred language.
- Recordkeeping: Temporary staffing firms must keep detailed records of their workers’ assignments and wages for six years.
- Anti-Retaliation: Temporary workers are protected from retaliation if they exercise their rights under this law.
The bill is designed to treat temporary workers as similarly to traditional workers as possible. It’s intended to disincentivize employers from utilizing temporary labor due to perceived cost savings and reduced compliance concerns.
The bill was crafted to encourage New Jersey employers to hire for more long-term positions, as the impact of hiring a temporary worker is now similar to that of a full-fledged team member.
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What Is the Current Status of the Bill?
Several industry groups, including staffing firms, challenged the law in court, arguing that it unfairly burdened businesses, particularly those based out of state. They also claimed that some of the law’s language was too vague.
In July 2024, the U.S. Court of Appeals for the Third Circuit ruled that the law could remain in effect and rejected the claims.
The court found that the Temporary Workers’ Bill of Rights did not favor in-state businesses over out-of-state businesses and was not unlawfully vague. This means the law remains fully enforceable, and employers must comply with its requirements.
Industry groups are still pursuing some legal challenges, particularly around the law’s impact on retirement and health benefits under the Employee Retirement Income Security Act (ERISA). Still, these challenges have not stopped the law from taking effect.
Unless and until the courts decide that the law should be revised or struck down, New Jersey employers must comply with it exactly as it’s written.
Who Is Affected by the Temporary Workers’ Bill of Rights?
This law applies to temporary help service firms and the companies that use these services to fill temporary positions.
A temporary help service firm is a business that provides workers to other companies to assist with temporary, excess, or special workloads. These firms pay wages, federal and state taxes, and workers’ compensation insurance for temporary workers.
The law also applies to temporary workers assigned to work in specific, officially-recognized job categories:
- Protective service workers (security, law enforcement)
- Food preparation and serving
- Building and grounds maintenance
- Personal care services (caregivers and health assistants)
- Construction laborers
- Installation, maintenance, and repair
- Production and manufacturing jobs
- Transportation and material moving
Not all temporary workers are covered by the law. It only applies to those working in the categories above, which have been identified as particularly vulnerable to exploitation. For example, a short-term academic tutor would not be considered a temporary worker.
What Are the Key Requirements for Employers?
Employers hiring temporary workers through staffing firms must be aware of several new requirements under the Temporary Workers’ Bill of Rights:
Equal Pay and Benefits
One of the most significant changes is that temporary workers must be paid the same wage rate as permanent employees performing the same or similar work.
If your company’s permanent employees receive benefits such as health insurance, retirement contributions, or paid time off, temporary workers must receive the same benefits or the cash equivalent.
Guaranteed Pay for No Work
Even if a temporary worker is assigned to a job but shows up and finds no work available, they are still entitled to at least four hours of pay at their agreed-upon rate. If they are reassigned to another worksite for the same shift, they must be paid for at least two hours of work at that rate.
Wage Notices
Employers must provide temporary workers with detailed written notices that include information specified within the law, including:
- The name of the temporary worker and the company
- The job duties and the wages offered
- The name and address of the worksite
- The schedule and the length of the assignment
- Any equipment or special clothing required and whether it will be provided
- The amount of sick leave the worker is entitled to under New Jersey law
This information must be provided in both English and the worker’s preferred language.
Itemized Wage Statements
Employers must also provide temporary workers with itemized wage statements on each paycheck, showing the number of hours worked, the wage rate, and any deductions. Deductions for background checks, transportation, or paycheck cashing are now prohibited under the law.
Recordkeeping
Temporary help service firms must keep records for six years. These records must include the worker’s name, the job assignment, the number of hours worked, and the pay rate. Employers should make sure that their staffing agencies are compliant with these requirements.
Anti-Retaliation Protections
The law makes it illegal for staffing firms or third-party employers to retaliate against temporary workers who assert their rights under the law.
If a temporary worker is disciplined or fired within 90 days of making a complaint or exercising their rights, it will be presumed to be retaliation unless the employer can prove otherwise.
Penalties for Non-Compliance
Employers who fail to comply with the Temporary Workers’ Bill of Rights can face significant penalties. For example, if a staffing firm or employer does not provide proper wage notices or itemized statements, they can be fined.
Fines range between $500 and $5,000, depending on the violation. Each separate instance is treated as a unique violation. Improper practices can lead to fines that can be devastating for small to medium-sized businesses.
In addition, temporary workers have the right to sue the staffing firm and the company that hired them if their rights are violated. These lawsuits can result in significant damages, including back pay, liquidated damages, and attorneys’ fees. In extreme cases, the state can revoke a staffing firm’s license if they are found to be non-compliant.
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Stay Compliant With Mosey
The New Jersey Temporary Workers’ Bill of Rights represents a major shift in how temporary workers are treated in the state.
While it provides much-needed protections, it also places new responsibilities on employers and staffing firms. By staying informed and making the necessary adjustments, you can ensure your business remains compliant and avoids costly penalties.
Employers should work closely with their HR managers and legal teams to ensure all aspects of the law are followed, from equal pay and benefits to accurate recordkeeping. By doing so, you’ll meet your legal obligations and promote a fair and positive working environment.
Mosey’s compliance platform provides businesses with the quick insights they need to stay on top of state and local requirements, such as the New Jersey Temporary Workers’ Bill of Rights. Book a demo with Mosey to learn how we can simplify HR compliance while you focus on growing your business.
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